Sweden’s ATG reveals tough Q1 as firm enters era of private ownership

A Q1 2025 financial report from AB Trav och Galopp (ATG), which runs horseracing betting in Sweden, has revealed a decline in total revenue.

Net gaming revenue, which includes ATG’s three gaming areas (horse racing, sports and casino in both Sweden and Denmark), stood at SEK 1.2bn- a decrease of 8% from the same period the year prior. Revenue from horse racing, the company’s main market, dropped 10%. 

The organisation noted that although it has increased the number of customers slightly in all gaming areas, with the total number standing at 1.4 million, these customers are playing for less money per week.

Difficult economic circumstances may be partly to blame for this, and have been cited by the economy. Sweden, like other nations, has faced tough economic times in recent years, and ATG has attributed a decline in customer spend to this.

However, Lotta Nilsson Viitala, ATG CFO, also attributed the change to negative calendar effects with a late Easter weekend – an intensive period for V75 – this year and fewer jackpots in the period than last year.

Furthermore, the casino division’s net gaming revenue decreased by 13%. One area that did rise however is sports betting, which went up by 14%.

Viitala highlighted the importance of valuing users: “We have many committed customers and it is very important to us that they feel good about their gaming.”

To clarify work done around its responsible gaming commitments ATG reports the percentage of green customers and the percentage of green turnover based on self-test and actual gaming behavior. 

Of the 226,000 Swedish customers who have done the self-test, 89% are green in their gaming and the percentage of green turnover is 82%.

Costs remain level

The group’s costs stand the same as the comparison period – SEK 1.1bn, of which gaming tax constituted SEK 303m. . Company leadership cited this as a key challenge in Q1, alongside aforementioned economic conditions.

“At the end of last half-year, the tax rate was increased from 18 to 22%, which in isolation results in a cost increase of SEK 51m in the first quarter of 2025,” continued Viitala.

The group’s costs excluding gambling tax were SEK 807m, a decrease of SEK 27 million.

Finally, ATG’s operating profit was SEK 267m, a decrease of SEK 122 million, which the group put down to reduced revenue and increased tax costs. The operating margin is 19%, down from 26%.

The revelation of financial struggles comes at an interesting time for ATG, which is at somewhat of a crossroads. The firm recently gained more independence from the Swedish government for one, and is also looking to expand its international presence ahead of Finland’s market launch next year. 

However, the amount of black market firms targeting the Swedish betting space is also a source of ongoing frustration for the company, as for Sweden’s regulators.