ATG reports double-digit rise in operating profit

The Swedish gambling operator’s operating profit for Q3 was up by 13.7 per cent year-on-year.

UK.- Aktiebolaget Trav och Galopp (ATG) has reported gaming revenue of SEK1.35bn for Q3. That’s a rise of 4.5 per cent year-on-year and the second-highest Q3 total in its history. Total revenue was SEK1.53bn, up 3 per cent year-on-year. Sports betting revenue was up from SEK151m to SEK159m.

Meanwhile, operating profit rose by 13.7 per cent to SEK497m. This was partly due to a 3 per cent drop in operating expenses through cuts made in marketing and consultancy costs. Operating expenses totalled SEK761m.

Online casino, which is ATG’s smallest vertical, saw the biggest growth at 24.2 per cent. It generated net gaming revenue of SEK169m. Retail revenue fell by 23.3 per cent to SEK154m, but overall digital net gaming revenue rose by 9.7 per cent to SEK1.20bn. Revenue from Denmark rose by 18 per cent to SEK92m.

ATG’s chief executive Hasse Lord Skarplöth welcomed the results but said the economic situation remained concerning.

He said: “We’re growing revenue – net gaming revenue in the third quarter is historically our second highest. And we cut costs. But the economy going forward is still a worry.

“After a decline during the first quarter, influenced by the general economy and last year’s pandemic, we see continued growth in the third quarter. We increase revenues and lower our costs. This is the effect of our continued customer focus as well as strict priorities, consultant turnover and cost control.”

He repeated his opposition to plans to increase Swedish gambling tax from 18 per cent to 22 per cent from July next year. ATG says the move would cost it SEK200m, which it says would spell a loss for the racing sector. It wants tax to be hiked further on online gambling instead.

“Our proposal is that the tax on betting should be kept at 18 per cent and the tax on commercial online gambling (casino and poker) should be raised to 26 per cent,” Lord Skarplöth said.