ATG Q3 2019 revenues up 13% as profits hit by regulation
Operator cites increased regulatory and taxation burdens following regulation
Former Swedish monopoly operator ATG has revealed a 13% year-on-year rise in net gaming revenue for the third quarter of 2019, with revenues hitting SEK1,167m.
Company operating profits, however, almost halved during the same period, dropping by 48% when compared to the same period in 2018 and falling to SEK449m.
ATG attributed this fall in profits to an unforeseen decline in total game sales in the wider Swedish market following the launch of regulated operations.
The operator said it had conducted its own analysis in the run up to regulation which assumed that regulation would lead to growth in the market, as it had done in several other foreign markets.
ATG also said the “extensive duty of care” and the introduction of the Spelpaus.se self-exclusion scheme had reduced company turnover.
The firm paid approximately SEK235m in Swedish betting and gaming taxes during Q3.
Despite the increased demands of regulation and its effects on turnover, ATG CEO Hasse Lord Skarploth hailed increased responsible gambling and regulatory restrictions as being positive for the industry.
“In Sweden, the new product areas of Sport and Casino have grown compared to the previous quarter and our horseracing betting operations have started to recover after a tough start to the year.
“Horseracing operations are still not in line with last year’s figures, but I have hopes we can continue to gain percentage points during the last quarter,” Skarploth added.