As Horse Wagering Declines, ATG Depends On Casino Expansion
Due to increases in its casino division offsetting a drop in sports betting and flat performance in its primary horse racing sector, ATG reported marginal revenue growth in Q1.
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ATG’s group revenue for the three months that concluded on March 31 was 1.38 SEK billion (€128.3 million). According to the Swedish operator, this was only 1% higher than the same time last year. At 1.21 SEK billion, net gaming revenue increased by 1% as well. With revenue in the segment up 20% year over year, casino performance was the only contributor to the increase in Q1. ATG, on the other hand, recorded a double-digit drop in revenue from sports betting, while revenue from horse racing, which is still by far its primary business, stalled.
Even if the group’s sales performance was uneven, the profit performance was more encouraging. Despite modest top-line growth, operational profit rose 22%, with margin rising to 23% as costs decreased. Net profit also jumped 22%, showing a more effective operating performance.
ATG is now dedicated to the growth of sports betting
With revenue of up to 172 SEK million, the casino was, without a doubt, the highlight of the Q1 performance. As a result, the segment’s share of total sales increased from 9% in the same quarter last year to 11% in Q1. ATG linked the 11% decline in sports betting revenue to negative sporting outcomes of 176 SEK million. As a result, the segment’s share of the quarter’s total sales decreased from 16% to 14%. Horse racing generated a total of SEK2.26 billion for the three months, down 1% year over year, and accounted for 75% of all revenue, which was similar to the previous year. Forsberg insisted that the segment is “stable” in spite of the stall.
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ATG will also boost the expansion of horse racing
In terms of the bottom line, a decrease in some expenses resulted in a 22% increase in operating profit to 326 SEK million. Pre-tax profit increased by 25% to 329 SEK million as a result. After income tax payments surpassed 12 SEK million, net profit increased by 24% to 317 SEK million. The bottom-line net profit was 318 SEK million, up 23% from the previous year, when translation difficulties were taken into consideration. Forsberg reassured the operator’s dedication to the horse racing industry as he concluded the Q1 study. He stated that ATG will continue to be the industry’s “engine and compass” even though growing the segment will be a “challenge.”
“Creating growth in horse racing is the biggest challenge we have ahead of us,” Forsberg stated. “ATG is fundamentally something special: a gaming company with a mission that goes beyond balance sheets and numbers.” “Our objective to generate income for Swedish trotting and galloping sports is being followed by the ideals that horse betting upholds: community, analysis, and presence in the experience itself. We accomplish this by continuing to provide thrilling games equitably and seamlessly.” “Our goal is still the same: we will be the gaming industry’s compass and the horse industry’s engine.”
Source: Next.io
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