ATG, the Swedish Horseracing Totalisator Board, reported a 2% year-on-year decrease in revenue for the first quarter.
In total, ATG generated SEK 2.6 billion ($243 million) in net gaming revenue (NGR), a slight decrease from the previous year. Revenue from ATG’s sports betting and casino segments, on the other hand, is increasing.
The former saw a 3% increase in top-line revenue, while the latter saw a 47% increase, which the company attributed to the removal of temporary restrictions last November.
However, a drop in horse race betting revenue offset some of the growth in both segments, while rising costs impacted ATG’s profitability.
As the name implies, horseracing is the company’s largest source of revenue, but it only generated SEK 2 billion, a 6% decrease year on year.
In the meantime, the group’s expenses, including taxes, increased by 4% to SEK 2.2 billion. According to the report, the primary cause of this increase is “changes in the product mix.”
As a result, ATG’s operating profit fell 13% to SEK 805 million. The company’s Chief Financial Officer (CFO), Lotta Nilsson Viitala, stated that the H1 results reflect a return to more normal operating conditions post-Covid.
“Life has happily returned to normal after the pandemic during the first six months of the year, with the result that competition from the entire entertainment industry has increased,” she said.
“It poses challenges in maintaining the same high numbers now, but we must continue to deliver exciting gaming experiences in a neat and flexible manner in order to develop and grow the company in the long term.”