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Horse racing growth drives ATG income as a lot as SEK1.3bn in Q1.

Horse racing growth drives ATG income as a lot as SEK1.3bn in Q1.

Sweden’s Aktiebolaget Trav och Galopp (ATG) has pointed to growth in its horse racing sector as potentially the predominant driver in reaching SEK1.3bn (£95.7m/€111.7m/$119.8m) in accumulate gaming income (NGR) throughout Q1.

Revenue is the ideal ATG has ever recorded in a Q1, as properly as a 9.2% salvage bigger on the identical quarter final year, when it reported SEK1.19bn in NGR.

That income growth was primarily all of the style down to increases in ATG’s horse racing sector, which was accountable for SEK968m in NGR, or 74.5% of the corporate’s Q1 entire. That figure was furthermore 13.3% before the SEK854m in NGR accumulated by the horse racing sector in Q1 2023.

Casino furthermore saw an salvage bigger of 13.8% year-on-year, with SEK165m in NGR generated from the field in Q1. The growth in horse racing and casino helped to offset decreases in sports betting, which reported SEK173m in NGR, 10.8% on the again of final year’s Q1 figure of SEK194m.

ATG attributed unlit sports betting efficiency all of the style down to “player-friendly” sports results throughout the quarter.

Lotta Nilsson Viitala, ATG’s chief monetary officer, believes the corporate’s Q1 efficiency was an spectacular one pondering potentially the most unique recession. Viitala furthermore explained the reasons for the horse racing growth, as properly as its significance to ATG.

“Besides sure calendar results with an early Easter weekend, we had extra jackpots on our predominant gaming manufacturers than throughout the identical duration final year,” Viitala said. “For horse racing, we furthermore had a aged Q1 in 2023 with a in truth appropriate kind first quarter in 2024, which contributes to the sturdy salvage bigger within the comparability.

“Being an ambiance gracious company and having a high result’s serious to us because ATG is and must stay the motive power within the Swedish horse industry.”

Prices furthermore up for ATG in Q1

Total income 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 salvage bigger in charges to its increased NGR and its subsequent carry out on tax, charges rights as properly as commissions. The company furthermore outlined that its 2nd top cost item following tax is equestrian information and rights, an expenditure that increases when horse racing betting increases treasure it did throughout Q1.

ATG’s working profit for Q1 stood at SEK389m, up SEK72m from the identical quarter final year, while working margin furthermore increased from 23% to 26%.

The need of energetic prospects rose from 1.3 million to 1.4 million, and Viitala believes ATG’s sturdy buyer noxious locations extra responsibility on the corporate to guard them from irresponsible play.

“ATG has many and committed prospects and this is very crucial to us that they feel appropriate kind about their gambling,” Viitala persisted. “We attributable to this fact continue to plot our gambling responsibility in assorted ways.”

Solid 2023 carrying over despite gloomy market threat

ATG’s upwards growth trajectory it displayed in 2023 appears house to continue with a stable Q1 document. Final year, ATG reached SEK1.45bn in accumulate profit, up 7.5% from 2022. Rep gaming income furthermore edged up by 0.9% to SEK5.27bn.

Nonetheless, ATG has furthermore notorious what it described as “caring” channelisation charges in Sweden as a doubtless threat.

Its Q4 channelisation document estimated igaming channelisation charges to be round 69%-82%. These numbers are diagram off the 90% goal house by the Swedish government.

That channelisation charge has now fallen in consecutive quarters since Q3 2023, and ATG furthermore highlighted that unlicensed operators’ customer traffic has increased tenfold since 2019.

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