ATG posts flat third-quarter revenue of SEK4.5bn
ATG single game revenues for 1 January – 30 September 2022 are largely at the same level as the comparison period last year.
This also applies to the period’s total revenue for the group. We see tendencies towards our customers having less money left in the entertainment wallet. It is completely natural with the price increases and interest rate increases that are taking place, says Lotta Nilsson Viitala, CFO at ATG®.
All figures in the report refer to the entire ATG® Group and the first nine months of 2022 unless otherwise stated. All comparisons are with the same period last year. In the first nine months of the year, the effects of the pandemic have died down, but the world has entered the next crisis with the war in Ukraine and global economic challenges with high inflation and an impending recession.
The economic situation affects all people and with less money left for entertainment and consumption of games, it will also affect ATG. However, it is difficult to say how much already, says Lotta Nilsson Viitala.Net gaming revenue Net gaming revenue was SEK 3.9 billion, a decrease of just under 1 percent compared to 2021. Net gaming revenue includes ATG’s three gaming areas: horse, sports and casino.
ATG’s largest and most important gaming area, the horse game, decreased by 6 percent.
The decline is expected after the sharp increase we had during the pandemic. The sports game had growth of 6 percent.
ATG is still the largest betting company in Sweden in sports betting. The casino’s net gaming revenue increased by 52 percent.
We are pleased to note that the growth comes from the number of customers having increased after the temporary gambling responsibility regulation was removed in November 2021, says Lotta Nilsson Viitala and continues: I would also like to mention that our subsidiary in Denmark has a strong development and contributes positively to the whole with a growth of a high 42 percent compared to the same period last year. The group’s total revenue amounted to 4.5 billion and also decreased by just under 1 percent. The number of active customers was approximately 1.3 million.
ATG has many and committed customers and it is very important to us that our customers feel good about their gambling. We therefore continue to develop our gaming responsibility continuously, says Lotta Nilsson Viitala. To clarify gambling responsibility work, ATG reports the proportion of green customers and proportion of green turnover based on self-tests and actual gambling behaviour. 140,000 Swedish customers have done the self-test.
Of these, 86 percent are green in their gambling and the share of green turnover is 79 percent. Both figures are stable during the year.The group’s costs, including gambling tax, were 3.2 billion, an increase of 5 percent.
The biggest reason for the increased costs are changes in the net gaming revenue. Sports and casino have increased their share and the margin on those revenues is lower than on the horse games.
After the gambling tax, ATG’s second highest cost item is the purchase of equestrian information and rights from Svensk Travsport and Svensk Gallopp. ATG’s operating profit was SEK 1.2 billion. The operating margin is 28 percent and has decreased from 31 percent. Another way to see how ATG is actually doing is to look at the parent company’s results before transactions with the owners. It was just under 1.7 billion, which corresponds to 38 percent of total revenues.
Being an efficient company and having a high result is important to us because ATG is and must remain the driving force in the Swedish horse industry. Our entire surplus goes back to Swedish Trotting and Swedish Gallop, concludes Lotta Nilsson Viitala.