Home > Finance > ATG revenue dips in “troubled” Q1
Former Swedish horse racing monopoly Aktiebolaget Trav och Galopp (ATG) reported SEK1.19bn (£92m/€104.9m/$115.3m) in net gaming revenue for the first quarter of 2023.
This was a decline of 5.9% compared to ATG’s Q1 2022 performance.
Taking agency income into account at SEK50m, and other incomes at SEK129m, the total revenue for the period was SEK1.37bn, down by 6.1%.
Hasse Lord Skarplöth, CEO of ATG, said that the first quarter of the year had continually been affected by a “troubled environment” encompassing the cost of living crisis, inflation and high interest rates. This echoed Skarplöth’s comments on ATG’s full-year 2022 results.
“The deteriorating economy during the first quarter is reflected in our operating profit… and in the parent company’s profit before transactions with owners,” said Skarplöth.
Skarplöth said both horse racing and sports betting had shown improvement, but added that there was a decrease in revenue for horse racing.
“Our product areas of sport and casino showed continued growth of 10% and 20% respectively,” he said.
“The net gambling revenue for horse racing decreased to SEK854m (-12%) in comparison with the same period last year, but we retain our market share in horse gambling.”
Q1 results
Revenue from horse racing made up 75% of the total net gaming revenue in Sweden, and 23% of it in Denmark. Sports betting made up 16% in Sweden and 23% in Denmark, while revenue from casino games generated 9% of the total revenue in Sweden and 54% in Denmark.
Other expenses made up the highest costs for the quarter, totaling at SEK613m, an improvement of 4.4%.
Gaming tax was SEK244m, up by 5.8%, while personnel costs grew by 11.2% to SEK139m.
Depreciation and write-downs of intangible and tangible fixed assets hit SEK78m, growing by SEK4m yearly, while activated work for own account added SEK19m to the total.
This resulted in an operating profit of SEK317m, a decline of 15.7%.
Results from financial terms at SEK4m brought the pre-tax profit to SEK321m. Following income tax of SEK13m, the total profit for the quarter was SEK308m, down by 16.3%
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