Swedens former horse racing monopoly, Aktiebolaget Trav och Galopp (ATG), has announced net gambling earnings of SEK 1.19 billion (£92 million/€104.9 million/$115.3 million) for the initial three months of 2023.
This figure signifies a 5.9% reduction compared to ATG’s performance in the first quarter of 2022.
After considering SEK 50 million in agency earnings and an additional SEK 129 million in income, total revenue for the period amounted to SEK 1.37 billion, down 6.1%.
ATG’s chief executive, Hasse Lord Skarplöth, stated that the initial quarter had been affected by a “volatile market environment,” encompassing the cost of living crisis, inflation, and elevated interest rates. This echoes Skarplöth’s remarks on ATG’s full-year 2022 outcomes.
“The economic decline in the first quarter is reflected in our operating profit… and the profit before transactions with the proprietors,” Skarplöth stated.
Skarplöth indicated that both horse racing and sports wagering exhibited signs of improvement, but added that horse racing revenue had decreased.
“Our sports and casino product areas continued to expand by 10% and 20% respectively,” he mentioned.
“Net gambling earnings from horse racing dropped to SEK 854 million (-12%) compared to the same period last year, but we maintained our market share in the horse racing betting market.”
Initial quarter results
Equine racing earnings in Sweden constitute seventy-five percent of total net gambling earnings, whereas in Denmark it’s twenty-three percent. Athletic wagering earnings in Denmark make up twenty-three percent, while Sweden sits at sixteen percent. Casino game earnings in Denmark account for fifty-four percent of total earnings, compared to nine percent in Sweden.
Other expenditures took the largest portion of expenses this quarter, totaling six hundred thirteen million Swedish Krona, an increase of four point four percent year-over-year.
Gambling taxes amounted to two hundred forty-four million Swedish Krona, up by five point eight percent, while personnel expenses increased by eleven point two percent to one hundred thirty-nine million Swedish Krona.
Depreciation and impairment of intangible and tangible fixed assets reached seventy-eight million Swedish Krona, up by four million Swedish Krona year-over-year, while activated self-employment work increased by nineteen million Swedish Krona.
This resulted in an operating profit of three hundred seventeen million Swedish Krona, down by fifteen point seven percent.
The outcome of financial terms amounted to four million Swedish Krona, resulting in a pre-tax profit of three hundred twenty-one million Swedish Krona. After deducting thirteen million Swedish Krona in income tax, the total profit for the quarter was three hundred eight million Swedish Krona, down by sixteen point three percent.
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