Sweden’s Aktiebolaget Trav och Galopp (ATG) has pointed to development in its horse racing sector as the principle driver in reaching SEK1.3bn (£95.7m/€111.7m/$119.8m) in rep gaming revenue (NGR) at some stage in Q1.
Earnings is the very wonderful ATG has ever recorded in a Q1, as wisely as a 9.2% lift on the an identical quarter closing year, when it reported SEK1.19bn in NGR.
That revenue development used to be basically all the vogue down to will improve in ATG’s horse racing sector, which used to be liable for SEK968m in NGR, or 74.5% of the firm’s Q1 total. That resolve used to be moreover 13.3% ahead of the SEK854m in NGR gathered by the horse racing sector in Q1 2023.
On line casino moreover saw an lift of 13.8% year-on-year, with SEK165m in NGR generated from the sphere in Q1. The expansion in horse racing and casino helped to offset decreases in sports betting, which reported SEK173m in NGR, 10.8% at the serve of closing year’s Q1 resolve of SEK194m.
ATG attributed unhappy sports betting performance all the vogue down to “participant-favourable” sports results at some stage in the quarter.
Lotta Nilsson Viitala, ATG’s chief monetary officer, believes the firm’s Q1 performance used to be a exact one keen regarding the most fresh recession. Viitala moreover outlined the explanations for the horse racing development, as wisely as its significance to ATG.
“As wisely as to obvious calendar effects with an early Easter weekend, we had more jackpots on our predominant gaming brands than at some stage in the an identical interval closing year,” Viitala said. “For horse racing, we moreover had a used Q1 in 2023 with a actually correct first quarter in 2024, which contributes to the exact lift in the comparability.
“Being an efficient firm and having a excessive consequence’s primary to us because ATG is and must live the riding force in the Swedish horse alternate.”
Charges moreover up for ATG in Q1
Total revenue for Q1 reached SEK1.5bn, up over 9% from Q1 2023. Here is no topic funds rising SEK50m to SEK1.1bn including tax.
ATG attributed the rise in funds to its elevated NGR and its subsequent discontinuance on tax, funds rights as wisely as commissions. The firm moreover outlined that its 2nd very most practical rate merchandise following tax is equestrian files and rights, an expenditure that can improve when horse racing betting will improve uncover it irresistible did at some stage in Q1.
ATG’s running revenue for Q1 stood at SEK389m, up SEK72m from the an identical quarter closing year, while running margin moreover elevated from 23% to 26%.
The vogue of active customers rose from 1.3 million to 1.4 million, and Viitala believes ATG’s exact customer heinous areas more accountability on the firm to give protection to them from irresponsible play.
“ATG has many and committed customers and it is a long way terribly primary to us that they the truth is feel correct about their playing,” Viitala persisted. “We therefore proceed to construct our playing accountability in assorted techniques.”
Stable 2023 carrying over no topic black market threat
ATG’s upwards development trajectory it displayed in 2023 looks to be place of dwelling to proceed with a exact Q1 document. Closing year, ATG reached SEK1.45bn in rep revenue, up 7.5% from 2022. Win gaming revenue moreover edged up by 0.9% to SEK5.27bn.
Nonetheless, ATG has moreover renowned what it described as “annoying” channelisation charges in Sweden as a doubtless threat.
Its Q4 channelisation document estimated igaming channelisation charges to be around 69%-82%. These numbers are manner off the 90% target place of dwelling by the Swedish govt.
That channelisation price has now fallen in consecutive quarters since Q3 2023, and ATG moreover highlighted that unlicensed operators’ customer traffic has elevated tenfold since 2019.
