ATG Sees Marginal Growth Amidst Betting Diversification

Despite a 3% decrease in its flagship horseracing betting segment, ATG experienced notable growth in other areas, with sports betting revenues rising by 11% and casino revenues soaring by 20%.

Diversifying Beyond Horseracing

Since the Swedish market’s re-regulation in 2019, ATG has successfully broadened its offerings, with sports and casino betting now comprising about 26% of the group’s net gaming revenue. “This diversification has not only enriched our portfolio but has also significantly contributed to our bottom line,” stated Lotta Nilsson Viitala, ATG’s Chief Financial Officer.

The group’s Danish subsidiary, 25syv, also showed impressive performance, with a 16% growth over the previous year. This expansion highlights ATG’s successful strategy in extending its footprint beyond Swedish borders.

Financial Highlights and Operational Efficiency

The total revenue for ATG remained steady at SEK 6 billion, mirroring the figures from 2022. However, operational efficiencies led to a 2% reduction in costs, totaling SEK 4.2 billion. Consequently, the operating profit increased by 6% to SEK 1.8 billion, with an operating margin improvement of two percentage points to 30%.

Our Commentary: ATG’s Strategic Evolution

ATG’s ability to maintain revenue growth amidst a challenging environment, particularly with a decline in its traditional horseracing segment, showcases the company’s adaptability and strategic foresight. By expanding into sports and casino betting, ATG has not only diversified its revenue streams but also strengthened its market position in a competitive landscape.

The company’s focus on operational efficiency and international expansion, especially in Denmark, indicates a robust strategy geared towards sustainable growth. As the iGaming industry continues to evolve, ATG’s proactive approach in adapting to market changes and exploring new opportunities will be crucial in maintaining its growth trajectory and market relevance.