ATG’s net gaming revenue and profits surge in first half of 2020
Swedish operator singles out an “historically strong” Q2 as horseracing turnover rose 31% year-on-year
ATG has posted net gaming revenue (NGR) of SEK2.5bn (£216m) in the first half of 2020, which was up 20% year-on-year (YoY), as bettors turned to horseracing due to the dearth of sports from mid-March to June caused by the global pandemic. Operating profit soared 73% from SEK590m in H1 2019 to SEK1.2bn, while profit came in at SEK970m, up from SEK568m. Hailing ATG’s “historically strong second quarter”, management said trotting and galloping had made up for the lack of sports betting options due to coronavirus and that it had led to international interest in Swedish racing. “The range of sports games was largely non-existent, which instead increased interest both nationally and internationally in playing Swedish equestrian sports,” the company said. ATG revealed horseracing turnover increased 31% YoY in Q2 to SEK4.1bn, translating to a rise of SEK325m in NGR. Racing accounted for 91% of ATG’s NGR in Sweden.
Partly as a result, ATG’s NGR in the second quarter increased 31% YoY to SEK1.4bn and operating profit leapt 123% to SEK677m. Profit hit SEK643m, up from SEK291m last year. ATG reported that sports had “recovered strongly” in June onwards and that the business had enjoyed strong growth in casino in Q2, although ATG had not seen any increase in problem gambling among customers. On 23 March, the company introduced a mandatory loss limit for all ATG’s casino players. Meanwhile, there were approximately 1.4 million active customers in Q2 across the group, which was an increase of 10% over Q2 2019. This “strengthened ATG’s position as the largest company in the commercial market,” the company said. Looking ahead, ATG singled out the controversial temporary deposit limits of SEK5,000 per week for online casino introduced in Sweden. “The regulation was introduced on 2 July and risks reducing ATG’s net gaming revenue, which then decreases the company’s results,” ATG said. “We still see high customer interest in casino even after 2 July, but the effect of the regulation has meant an expected reduction in net sales.”