ATG’s core horse racing betting business experienced a 4.2% decline in revenue, amounting to SEK1.01bn. However, the operator saw growth in its sports betting and casino divisions, resulting in a 1.1% increase in net gaming revenue to SEK1.34bn. Total revenue remained flat compared to H1 2022 due to declines in agency operations and other activities.
To counteract the impact of inflation, ATG reduced costs during the second quarter. ATG CEO Hasse Lord Skarplöth emphasized the importance of cost control for future growth in H2. Skarplöth commended the company’s ability to lower other costs through prioritization, consultant turnover, and cost control. The CEO expects further growth in the second half of the year, but acknowledges the uncertain economic situation and the need to focus on long-term sustainable income.
Betting on horse racing, although still the main source of revenue for ATG, experienced a 4.2% decline in Q2, which was less steep compared to the 12.0% decline in Q1. Sports betting revenue, on the other hand, saw an 18.5% increase to SEK170.0m, driven by the ongoing development of the Big 9 pool game. Casino revenue also rose by 23.6% to SEK157.0m, with ATG highlighting a significant slot machine win of SEK61m in April.
In terms of geographical performance, activities in Sweden generated SEK1.26bn in revenue, representing a 0.2% YoY increase in Q2. Revenue from Danish operations, through Ecosys, saw a substantial climb of 22.9% to SEK86.0m.
Despite a positive Q2, ATG reported declines during the first half of the year. Revenue decreased by 3.1% to SEK2.91bn, while net gaming revenue slipped 2.4% to SEK2.54bn. Revenue from horse racing betting declined by 7.9% to SEK1.86bn. However, sports betting revenue increased by 13.7% to SEK373.0m, and casino revenue jumped 21.8% to SEK302.0m.
ATG appointed Peter Norman as its new chairman in Q2, succeeding Bo Netz. Norman has previously served as the minister of financial markets in Sweden and held positions at Seventh AP Fund and Sveriges Riksbank.
Overall, while ATG experienced declines in its horse racing betting business, the growth in sports betting and casino divisions, as well as cost control measures, helped maintain overall revenue and net profit. ATG remains focused on sustainable income, consultant turnover, and ongoing cost control in the face of economic uncertainties.
