Aktiebolaget Trav och Galopp (ATG), the previous Swedish horse racing monopoly, has introduced its first quarter outcomes, highlighting an eventful interval for the corporate. The suboptimal outcomes have been because of macroeconomic headwinds.
For the primary three months of 2023, ATG’s web gaming income was SEK 1.19 billion (roughly $116 million). This quantity is down 5.9% year-on-year, indicating that the corporate’s enterprise is in hassle.
The corporate’s whole income for the interval was SEK 1.37 billion (roughly $133 million), representing a decline of 6.1%. In the meantime, the corporate’s working revenue over the identical interval plummeted 15.7% to $30.8 million.
Horse racing income accounts for 75% of the corporate’s whole web gaming income in Sweden and 23% of web gaming income in Denmark. On the similar time, on line casino video games accounted for 54% of the corporate’s Danish income and simply 9% of its Swedish income.
In Q1 2023, ATG needed to pay $23.7 million in gaming taxes, a 5.8% year-on-year improve. Labor prices additionally elevated by 11.2% year-on-year to $13.5 million.
Skarplöth blamed the price of dwelling disaster and inflation
CEO of the corporate, Hasse Sir Skarpros, commented on ATG’s efficiency within the first quarter of 2023. He mentioned the corporate must proceed to fight varied financial headwinds, together with rising prices of dwelling, inflation and excessive rates of interest. These are the identical the explanation why the corporate’s 2022 was down barely.
Based on Skarplöth, the corporate’s first quarter outcomes mirror general financial circumstances. Nonetheless, not all is grim for the previous monopoly, as some merchandise noticed enhancements in Q1 2023.
The corporate’s sports activities betting and on line casino merchandise recorded enhancements of 10% and 20% respectively, in accordance with the CEO. Nonetheless, web revenues from the corporate’s primary horse racing enterprise continued to say no. Luckily, ATG continues to take care of market share, he concluded, Skarplöth.
ATG fined for AML and failure to self-exclude
Suboptimal monetary outcomes aren’t the one downside going through ATG. Final yr, the corporate bumped into hassle after Swedish playing regulator Spelinspektionen revealed a wide range of his AML failures.
In consequence, the previous monopoly was pressured to pay a $570,000 superb and acquired a proper warning from regulators.
This superb follows a earlier rule violation through which sure gamers weren’t proven the ATG’s self-exclusion scheme because of a technical failure. For this violation, the operator fined him $188.4.
