ATG sees revenue decline in Q1
The Swedish gambling operator blamed general economic conditions for its performance.
Sweden.- The Swedish horseracing betting operator AB Trav och Galopp (ATG) has reported its first-quarter results. Net gaming revenue across horse racing, sports betting and online casino operations in Sweden and Denmark totalled SEK 1.2bn (€109.9m), a drop of 8 per cent year-on-year. Its core horseracing segment saw revenue fall by 10 per cent.
There was a slight increase in customers across all sectors, reaching 1.4 million, but customers wagered less per week. Casino revenue was down by 13 per cent, while sports betting revenue rose by 14 per cent.
The operator blamed the downturn on general economic conditions, fewer jackpot opportunities and the later Easter weekend, which is often a big weekend for its V75 product. Chief financial officer Lotta Nilsson Viitala also stressed that the company was prioritising customer well-being
To those ends, ATG has developed the concept of ‘green’ customers and turnover, which are those with the least risky gambling behaviour according to a self-test. Of the 226,000 Swedish customers who have completed the self-test so far, 89 per cent were classed as green. These accounted for 82 per cent of turnover.
Costs remained steady, although Vitala again took the opportunity to lament the rise in Swedish gambling tax from 18 to 22 per cent, which led to an extra SEK 51m in costs during Q1. Operating profit was down by SEK 122m, and the margin was down from 26 to 19 per cent.
State-controlled Svenska Spel also had a difficult first quarter. Today, it reported revenue of SEK 1.88bn (€171.7m), a drop of 4 per cent year-on-year. However, the decline was partly attributed to the closure of two out of its three Casino Cosmopol land-based casinos in February of last year.
ATG: international expansion and less government oversight
The Swedish government is reducing state oversight of ATG. Under a new agreement with co-owners Svensk Travsport and Svensk Galopp, ATG’s board will now comprise mainly independent members.
The new arrangement ends the Swedish government’s authority to nominate up to six of the board’s 11 members. The board will also be able to modify ATG’s articles of association without government approval, and there will be an increase in the amount that ATG contributes to Sweden’s national foundation for the horseracing industry.
Meanwhile, ATG continues to focus on expanding internationally. It plans to enter Finland’s online gambling market in a joint venture with Suomen Hippos once the country liberalises its gambling market, which is expected by 2027. The Finnish Gambling Act is awaiting parliamentary approval.
