Sweden’s Aktiebolaget Trav och Galopp (ATG) has reported a record Q1 income of SEK1.3bn (£95.7m/€111.7m/$119.8m), marking a 9.2% increase from the same quarter last year. This growth was primarily driven by the horse racing sector, which accounted for 74.5% of the company’s Q1 total. The casino sector also saw a 13.8% year-on-year increase. Despite a decline in sports betting, ATG’s overall performance remained strong, with the number of active customers rising from 1.3 million to 1.4 million. The company continues to prioritize responsible gambling among its customer base.
Sweden’s Aktiebolaget Trav och Galopp (ATG) has pointed to converse in its horse racing sector as the first driver in reaching SEK1.3bn (£95.7m/€111.7m/$119.8m) in salvage gaming revenue (NGR) all the design in which thru Q1.
Income is the glorious ATG has ever recorded in a Q1, to boot to a 9.2% extend on the identical quarter closing year, when it reported SEK1.19bn in NGR.
That revenue converse modified into primarily down to increases in ATG’s horse racing sector, which modified into accountable for SEK968m in NGR, or 74.5% of the firm’s Q1 total. That resolve modified into also 13.3% earlier than the SEK854m in NGR gathered by the horse racing sector in Q1 2023.
On line casino also saw an extend of 13.8% year-on-year, with SEK165m in NGR generated from the field in Q1. The converse in horse racing and on line casino helped to offset decreases in sports making a bet, which reported SEK173m in NGR, 10.8% on the support of closing year’s Q1 resolve of SEK194m.
ATG attributed unlucky sports making a bet efficiency down to “player-favourable” sports outcomes all the design in which thru the quarter.
Lotta Nilsson Viitala, ATG’s chief monetary officer, believes the firm’s Q1 efficiency modified into a stable one brooding about the sizzling recession. Viitala also outlined the reasons for the horse racing converse, to boot to its significance to ATG.
“Moreover to sure calendar outcomes with an early Easter weekend, we had more jackpots on our major gaming producers than all the design in which thru the identical period closing year,” Viitala talked about. “For horse racing, we also had a ragged Q1 in 2023 with a extremely correct first quarter in 2024, which contributes to the stable extend within the comparability.
“Being an ambiance friendly firm and having a high end result is serious to us because ATG is and need to live the motive force within the Swedish horse business.”
Expenses also up for ATG in Q1
Complete revenue for Q1 reached SEK1.5bn, up over 9% from Q1 2023. Right here’s despite charges rising SEK50m to SEK1.1bn including tax.
ATG attributed the extend in charges to its elevated NGR and its subsequent originate on tax, charges rights to boot to commissions. The firm also outlined that its 2nd top fee merchandise following tax is equestrian data and rights, an expenditure that increases when horse racing making a bet increases delight in it did all the design in which thru Q1.
ATG’s working profit for Q1 stood at SEK389m, up SEK72m from the identical quarter closing year, while working margin also elevated from 23% to 26%.
The necessity of active potentialities rose from 1.3 million to 1.4 million, and Viitala believes ATG’s stable customer atrocious areas more responsibility on the firm to guard them from irresponsible play.
“ATG has many and committed potentialities and it’s completely indispensable to us that they honestly feel correct about their gambling,” Viitala persisted. “We ensuing from this reality proceed to fabricate our gambling responsibility in varied ways.”
Strong 2023 carrying over despite sunless market chance
ATG’s upwards converse trajectory it displayed in 2023 appears to be like to be like place aside of residing to proceed with a stable Q1 file. Final year, ATG reached SEK1.45bn in salvage profit, up 7.5% from 2022. Fetch gaming revenue also edged up by 0.9% to SEK5.27bn.
Nonetheless, ATG has also popular what it described as “being concerned” channelisation rates in Sweden as a capability chance.
Its Q4 channelisation file estimated igaming channelisation rates to be round 69%-82%. These numbers are methodology off the 90% purpose place aside of residing by the Swedish executive.
That channelisation rate has now fallen in consecutive quarters since Q3 2023, and ATG also highlighted that unlicensed operators’ customer traffic has elevated tenfold since 2019.
Source: iGamingBusiness
