ATG revenue up 2% in challenging Swedish market
After the first half of the new re-regulated Swedish gaming market, ATG reports the highest net revenues – SEK 2.1 billion – in the company’s history.
Net gaming revenue and the number of registered customers increased during the period. Net sales growth is two percent higher. But we have had challenges during the period, says Lotta Nilsson Viitala, CFO ATG.
Net gaming revenues include ATG’s three gaming areas: horse, sports and casino games.
The challenge in the first half of the year has mainly been on ATG’s largest and most important gaming area, the horse game, which decreased during the half year by approximately 10 percent in net sales.
The decline of the game on horses is a consequence of several things; compulsory registration of games and further important gaming liability measures introduced in connection with the new gaming act on January 1, and during the period there were only four V75 jackpots compared to 14 last year. And of course, the re-regulation has meant increased competition within the horse game.
The turnover loss in the horse game is compensated by the new gaming areas, sports and casino, which have received a good reception from ATG’s customers. During the six months, net revenues from the new gaming areas amounted to SEK 255 million.
“We are pleased to see continued growth in relation to our active and registered customers, they were over 1.2 million at the end of June and thus an increase of 100,000 customers compared to the first quarter,” says Lotta Nilsson Viitala.
A new feature of the report is that, for the first time, ATG is also reporting the share of “green customers” and “green sales”.
Gambling responsibility is our most important sustainability issue. It is important for us that our customers feel good about their gambling. That is why we are now starting to monitor and report “green” customers and their turnover, says Lotta Nilsson Viitala.
The total cost was almost SEK 1.5 billion. Costs include a number of major changes compared to last year. One of these is the cost of equestrian sports information and rights purchased by Svensk Travsport and Svensk Galopp, which is the dominant part of the increase and corresponds to about five percent of the gross turnover of the horse game. The increase also includes costs for the new gaming areas.
The new gaming tax of SEK 424 million affects ATG’s operating profit. The tax and the aforementioned changes mean that operating profit of SEK 590 million is therefore not comparable to last year’s profit, which was just over SEK 1.6 billion.
Last year, 2018, ATG paid just over SEK 2 billion to its owners trot and canter sports. In 2019, ATG will finance trot and canter sports by approximately the same amount. Thus, ATG continues to be the largest player in contributing to the Swedish horse industry and employment in the area, concludes Lotta Nilsson Viitala.