Paf’s results, open customer segments and lowered loss limit
2020 was an extreme year in so many ways. Large sections of Paf’s operations were shut down during some periods of the year or they operated with severe restrictions. Paf implemented a lower loss limit at the beginning of the year that also affected the result. Despite the financially strained situation, Paf chose to lower its loss limit even further for 2021. This year is the third year in a row that Paf has openly published its customer segments – an openness that is still unparalleled in the gaming industry.
The main area that has affected the decline in results is the Land & Ship operations, where revenues decreased by 59%. Internet operations were in turn affected by new restrictions in various markets and cancelled sporting events. Paf’s self-imposed and continuing work to reduce the revenue from its biggest players has also had a noticeable effect on the revenue.
“If we look at our openly published customer segments for Paf.com, we can declare that we have now completely stopped taking revenue from the ‘high rollers’. This is an important turning point in our pursuit of sustainable revenues,” says Paf’s CEO Christer Fahlstedt.
Openness for Paf’s new companies too
This year we are also choosing to publish the figures for Paf combined with Paf Multibrand, and this is the table that we will present as a whole for Paf in the future. In the table Paf Multibrand’s figures are for the years 2019 and 2020.
“Paf Multibrand is not an exception to the values we follow and the goals we set ourselves. From now on they are part of Paf and will follow our responsible gaming guidelines,” says Christer.
A sustainable gaming industry requires transparency, openness and honesty. Many companies say they’re working to prevent gambling addiction, but few dare to show what this actually looks like in straightforward numbers, let alone turn down income that other operators accept. Paf is showing the way – and for that they absolutely deserve this year’s award in the category.
That was the motivation of the jury when Paf was named Sweden’s most sustainable gaming company in 2020 at the Swedish Gambling Awards.
“At least we have recently noticed that some other gaming companies in Sweden are now talking about transparency and the possibility of showing some actual numbers, if they only knew how to do it. Well here are our numbers, we have published them for three years in a row now,” says Christer Fahlstedt.
Transparency in the gaming industry is a must, we cannot afford to wait and see any more.
“Our principle of openness is easy to understand for everyone. Do our customers play for large sums of money or do they play at a more sustainable level? We could, of course, choose to wait a few more years. So that we get a common scientifically-based table that all gaming companies can agree on before openly showing our numbers… Or we do something right now,” says Christer Fahlstedt.
We lowered the loss limit again
At the start of 2020 the Paf loss limit had recently been reduced to €25,000 – and it was held at that level for the full year. Despite the harsh reality of 2020, Paf chose to further lower the loss limit to €20,000 for the following year.
“We decided to strengthen our gaming responsibility efforts and we now promise that no customer in 2021 will lose more than €20,000, which is a further reduction of €5,000 euros,” says Christer Fahlstedt.
“We are well aware of the financial impact this will have on us and that our industry competitors do not take responsibility in the same way. But we believe this is a necessary step to take and something that we must deliver upon,” says Christer Fahlstedt.
15 million euros for the benefit of society
After a tough year, Paf’s financial results have nevertheless managed to maintain a stable level with a decrease in revenue of only 1% from 114.2 to 113 million euros. The result is also good, although it has decreased by 35% from 25.6 to 16.7 million euros.
“We can still state that we will distribute 15 million euros for public good. It is a good result after a tough year and I really want to thank all employees for their hard work during the year,” says the Chairman of the Paf Board, Jan-Mikael von Schantz.
Link to the full version of Paf´s Annual Report 2020
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