Former Swedish trotting monopoly Aktiebolaget Trav och Galopp (ATG) has reported full-year 2022 revenue of SEK6.04bn (£480.9m/€546.5m), a slight decrease of 1.2% compared to 2021, despite a “turbulent and troubled” 2022.
The total revenue consists of net gaming revenue at SEK5.22bn, agency income of SEK234m and other incomes at SEK584bn.
Hasse Lord Skarplöth, CEO of ATG, said that the operator had delivered good results for the period – particularly in terms of sport and casino – regardless of outside challenges.
“I ended last year’s CEO speech by saying ‘we can look forward to an exciting 2022’,” said Skarplöth. “So, a year later, I can state that I got a little more right than I wanted – but in the wrong way.
“ATG, during such a turbulent and troubled year, succeeding in increasing the net gaming revenue in both sports and casino by 8% and 49%, respectively, is a well-approved result.”
Specifically, Skarplöth was referring to recovery from the Covid-19 pandemic, the war in Ukraine and the increase in inflation.
Full year break down
Net gaming revenue for the year fell by 0.6% yearly. The total consisted of SEK4.94bn from operations in Sweden and SEK283m from operations in Denmark.
Revenue from horse betting operations made up SEK4.04bn of the net revenue total, while sports betting revenue generated SEK650m. The remaining SEK530m came from casino operations.
Gaming tax hit SEK1.07bn for the year, a rise of 1.0%, while personnel costs dipped further from SEK495m in 2021 to SEK529m in 2022. Other expenses grew by 4.5% to SEK2.51bn.
After considering these costs, as well as money from activated work for own accounts at SEK65m, and depreciation and write-downs with intangible and tangible fixed assets at SEK304m, the total operating profit for the year was SEK1.68bn. This was a decrease of 12.1% yearly.
Following results from financial items at SEK23m, the profit before tax totalled at SEK1.70bn. However, income tax of SEK357m brought the total amount for the year to SEK1.35bn, a decrease of 11.1% compared to 2021.
Fourth quarter results
Turning to the fourth quarter ended 31 December, total revenue was SEK1.55bn – up by 2.8%. This consists of net gaming revenue of SEK1.33bn and agency income of SEK58m, plus other income at SEK57m.
The net gaming revenue was made up of SEK1.02bn in horse betting revenue, alongside SEK171m in sports betting revenue and SEK146m in casino revenue.
Gaming tax for the quarter totalled SEK276m. Personnel costs came to SEK143m, while other expenses for the quarter were SEK629m. Money from activated work for own accounts was SEK17m for the quarter.
Depreciation and write-downs with intangible and tangible fixed assets totalled SEK77m.
These costs and additions brought the operating results to SEK444m for the quarter, 11.2% lower than in Q4 2021.
Results from financial items at SEK13m brought profit before tax to SEK457m. After income tax at SEK322m, the total net profit was SEK135m – down by 16.6%.
During the quarter, ATG – alongside Kindred and PinBet – received warnings and penalty fines from the Swedish Gaming Authority in regards to anti-money laundering failures.
Also during the quarter, in October, ATG announced that it would publish its responsible gambling data every six months in a move towards transparency.