ATG revenue falls below 2020’s heights in 2021

CEO Hasse Lord Skarplöth noted that while the business reported a slight decline in revenue compared to the prior year, 2020’s numbers had smashed company records thanks in part to a lack of other sport across the globe because of the Covid-19 pandemic. As a result, he said, 2021’s numbers were extremely impressive.

“When 2021 saw its beginning, there were a number of challenges for ATG,” he said. “In the spring of 2020, virtually all sporting events around the world were cancelled and we saw betting on horse racing increase substantially. This was the main reason for 2020's record figures.

“And now, when faced with a year of normal competition, would we be able to maintain interest in our brands built during the first year of the pandemic? The answer to the question was ‘yes’.”

Of ATG’s SEK6.12bn in total revenue, SEK5.26bn came from gaming, down 1.9% on 2020 levels.

Digital channels made up the vast majority of ATG’s gaming revenue, bringing in SEK4.29bn, a 4.3% rise from the prior year. Retail revenue, on the other hand, declined by 22.5% to SEK965m.

Breaking gaming revenue down by product type, horse racing was by far the biggest contributor, bringing in SEK4.30bn, a 6.1% drop from 2020, on bets totalling SEK17.28bn.

Sports betting revenue, however, improved by 47.0% to SEK600m, while casino revenue was down 4.0% to SEK356m.

The operator noted that Sweden’s SEK5,000 deposit cap for online casino continued to have a “negative effect” on casino revenue. This cap was eventually lifted late in the year, and though there were plans to bring it back, these were ultimately scrapped.

After the cap was lifted, ATG said casino customer and revenue numbers improved. However, it added, revenue per customer did not change.

Skarplöth, who previously spoke out in favour of the cap, said the government opting against imposing fresh limits was a “wise decision”.

While almost all of ATG’s gaming revenue came from Sweden, SEK195m came from Denmark, up 26.6%, with the majority of Danish revenue generated from online casino. Swedish revenue was down 2.8% to SEK5.06bn.

Outside of gaming, ATG also made SEK253m in sales agent revenue, down 17.6%, while other income was down 8.6% to SEK607m.

The operator then paid SEK1.06bn in gambling taxes, up marginally from 2020 as taxes rose, plus SEK495m in personnel costs, up 7.6%, and SEK302m in depreciation and amortisation costs, a 7.9%year-on-year increase.

On top of this, the business paid SEK2.41bn in other operating costs, which was 2.1% more than in 2020. These costs included payment for horse racing information and rights, as well as sponsorship costs.

After these expenses, ATG recorded an operating profit of SEK1.92bn, which was 14.7% less than the year before.

After paying SEK400m in tax, its final income was SEK1.52bn, down 13.1% from the year before.

In addition to its financial results, ATG also published some sustainability figures. It found - based on self-tests of 121,000 customers, that in Q4 85% of its customers representing 77% of revenue were classed as “green”.

This means that these players were assessed as having the lowest risk of gambling harm according to ATG’s responsibility tool, the Player Tracking System.

“This is a stable figure,” ATG chief financial officer Lotta Nilsson Viitala said. “The share of ‘green’ sales has increased from 75 to 78%, which is gratifying.”