ATG’s net gaming revenue and total revenue both decreased by 6 percent in the first quarter of 2023. Sports and casino show continued growth, while horse betting decreased by 12 percent compared to the same period in 2022.

The Swedish economy is in a tough period, something we also notice. It becomes clear above all at horse games, where the customers are as numerous as before, but spend less money, says Lotta Nilsson Viitala CFO at ATG.

All figures in the report refer to the entire ATG Group and the first quarter of 2023, all comparisons are with the same period last year.

Net gaming revenue for ATG® was SEK 1.2 billion, a decrease of 6 percent compared to the first quarter of 2022, a quarter that was partially positively affected by pandemic restrictions. The net gaming revenue includes ATG’s three gaming areas: horse, sports and casino in both Sweden and Denmark
Horse, sports and casino ATG’s largest and most important gaming area, the horse game, decreased by 12 percent in net gaming revenue.

It is always tough to note a reduction, even if it is in many ways expected given the impact of the economy and above all inflation on the entertainment wallet. However, the fact that the number of customers remains the same as before provides good conditions for revenue development when the economy turns, says Lotta Nilsson Viitala. Sports betting grew by 10 percent and ATG is now the largest betting company in sports betting and overall the second largest company in Sweden in sports betting. The casino’s net gaming revenue increased by 20 percent.

We can state that most of the growth comes from an increase in the number of customers.
In just over four years, ATG has taken a strong market position in the new gaming areas of sports and casino.

They are growing both in number of customers and in revenue and now account for around 28 percent of the group’s net gambling revenue, revenue that leads to good results on the bottom line, says Lotta Nilsson Viitala.

ATG’s subsidiary in Denmark, 25syv, continues to gain market share and had growth of 25 percent.
The group’s total revenue amounted to 1.4 billion and decreased by 6 percent.
Customers, gambling responsibility and costs.

The number of active customers was approximately 1.3 million.

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. 162,000 Swedish customers have done the self-test. Of these, 86 percent are green in their gambling and the share of green turnover is 78 percent. Both figures have been stable over the past year. The group’s costs including gambling tax were SEK 1.1 billion. A reduction of SEK 26 million or 2 percent.

We are working extra hard to streamline because our costs are negatively affected by inflation and by currency effects due to the weak Swedish krona, while revenues decrease due to a reduced entertainment budget, says Lotta Nilsson Viitala. After the gambling tax, ATG’s second highest cost item is the purchase of equestrian information and rights from Svensk Travsport and Svensk Gallopp.
Operating results ATG’s operating profit was SEK 317 million. The operating margin is 23 percent and has decreased from 26 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 481 million or 35 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 to Swedish Trotting and Swedish Gallop, says Lotta Nilsson Viitala.