ATG revenue hits record high of SEK5.36bn in 2020

| By Daniel O'Boyle
Swedish state-owned horse racing operator Aktiebolaget Trav och Galopp (ATG) had its best ever year in 2020, as net gaming revenue grew 21% to SEK5.36bn (£459.0m/€531.8m/$645.7m) while operating profit was up 49% to SEK2.24bn.

In an earnings update, ATG chief executive Hans Lord Skarplöth said the revenue growth came across verticals, with horse racing revenue up 19% from 2019, sports betting revenue up 51% despite the suspension of almost all sports for much of the year, and casino revenue up 20%.

Skarplöth said he was especially proud of the fact that both ATG’s revenue and operating margin increased.

“Growing with good profitability is always something to be proud of, growing with increased profitability feels great,” Skarplöth said.

The ATG chief executive added that three-quarters of ATG’s sales were online, due mostly to the effects of the novel coronavirus (Covid-19)

While ATG did not reveal its fourth-quarter revenue, Skarplöth said he was pleased to see horse racing revenue increase by 20% year-on-year during the period despite the return of traditional sports.

However, casino revenue was down year-on-year in Q4, which Skarplöth put down to the introduction of a mandatory SEK5000 deposit cap on the vertical in July 2020.

Yesterday, ATG announced that it is to offer daily fantasy sports games for the first time after partnering with Scout Gaming.