Swedish-facing operators Svenska Spel and ATG reported year-on-year financial growth during the third quarter, with both companies posting an increase in revenue and net profit for the three-month period.
Starting with Svenska Spel, the group saw net gaming revenue reach SEK1.87 billion ($199.4 million) in the quarter ended 30 September. This beat the previous year by 7%, the operator said in its Q3 financial report.
Svenska Spel noted growth across two of its three core businesses: Tur lottery and Sport & Casino. However, it saw a decline in the Vegas gaming machine segment, while the group was also slightly impacted by the discontinuation of its Casino Cosmopol land-based casino business.
Its final Casino Cosmopol location, in Stockholm, was shuttered in mid-H1. Several locations closed in January 2024, as well as another venue in Sundsvall in 2020.
However, growth across Tur lottery and Sport & Casino was more than enough to offset any impact of the closures, and indeed the Vegas declines, with top-line revenue clearing last year by a comfortable margin.
“Svenska Spel reports a third quarter with increased net gaming revenue, driven by strong product brands such as Eurojackpot and Oddset,” President and CEO Anna Johnson said. “Two out of three business areas show growth, which has a positive impact on the result, which increases compared to the same quarter last year.”
Lottery revenue exceeds SEK1.3 billion at Svenska Spel
Breaking down Q3, the Tur lottery remained Svenska Spel’s primary source of revenue by some margin. Revenue in this segment climbed by 7% to SEK1.31 billion. The operator put this down to a strong performance by Eurojackpot, where high jackpots contributed to increased customer interest, as well as a successful relaunch of Lotto.
Elsewhere, revenue from Sport & Casino jumped 9% year-on-year to SEK489 million. This, the group said, was helped by continued positive development for both online casino and sports betting under the Oddset brand, noting an increase in customers.
The only segment to go against the growth trend was Vegas, with machine revenue falling 10% to SEK78 million. Svenska Spel put this down to a fall in partners and a challenging economic situation affecting the restaurant industry.
Svenska Spel also noted that online accounted for SEK1.22 billion of total revenue, up 15% from last year. This meant online drew 65% of all revenue in Q3, compared to 60% in the same quarter of 2024.
Net profit rises to SEK584 million
Looking towards the bottom line, costs were relatively stable, although a drop in staffing costs following the Casino Cosmopol closures was posted.
Operating profit increased 18% to SEK718 million, on the back of revenue growth and stable expenses. Pre-tax profit also climbed 22.8% year-on-year to SEK739 million, helped by interest and other financial income.
Svenska Spel paid SEK155 million in tax, leaving a net profit of SEK584 million, up 18.5%.
“During the quarter, we delivered both increased revenue and progress within all of our strategic goals – a result of the joint work of the entire Svenska Spel,” Johnson said.
As for the year-to-date, net gaming revenue at the group for the nine months to the end of September was SEK5.56 billion, up 2%. Operating profit also increased on the back of this – by 8% to SEK1.90 billion for the period.
Pre-tax profit climbed 7% to SEK1.95 billion while, after SEK409 million in tax, net profit hit SEK1.54 billion, a rise of 8.3%.
ATG bounces back in Q3
Looking to ATG, the group saw net gaming revenue in Q3 rise 1% year-on-year to SEK1.30 billion. This was in contrast to the first two quarters of 2024, during which the operator posted a decline in revenue.
CEO Hasse Lord Skarplöth put the improved performance down to growth across horse and sports betting in Q3. He also noted a “continued focus on efficiency improvements”, with optimism about Q4 and beyond.
“It has been a challenging first half of the year for us, but the third quarter marks a small turnaround for ATG,” Skarplöth said. “The group’s net gaming revenue increased by 1% compared to the same quarter last year.
“To meet a changing market, we work consistently with efficiency improvements to reduce costs and strengthen profitability. We are already seeing clear results from an even more focused use of resources.”
Sports growth offsets casino decline
Analysing the quarterly performance, ATG said horse racing accounted for 77% of revenue in the period. However, the SEK958 million generated was only marginally more than in Q3 of last year.
In terms of sports betting, the performance here was more positive at SEK171 million, a rise of 6%. This pushed its total contribution to group revenue up from 12% to 13%.
However, in contrast, casino revenue dipped 1% to SEK167 million, or 10% of all revenue in the quarter. ATG noted that this year’s Q3 had four fewer jackpots than in the same period last year.
Digital and online channels generated SEK1.19 billion of all revenue, a rise of 2%. However, retail revenue dipped 8% year-on-year to SEK109 million.
Reduced spending pushes profit up at ATG
Looking at spending, expenses were reduced across several areas including gambling tax and other costs. Coupled with the slight rise in revenue, this allowed operating profit to climb 9% to SEK434 million.
Pre-tax profit increased 7% to SEK441 million while net profit after tax in Q3 also climbed 7% year-on-year to SEK428 million.
“Our ambition is clear: to create sustainable growth and strengthen ATG’s long-term competitiveness – for the benefit of our customers, the sport and the entire horse industry,” Skarplöth said.
As for the year-to-date, net gaming revenue for the nine months to end of September hit SEK3.86 billion. This fell 3% short of the previous year due to declines across both Q1 and Q2 at ATG.
Coupled with higher costs in some areas, this meant that operating profit fell 11% to SEK1.11 billion for the period. Pre-tax profit was also 12% lower year-on-year at SEK1.12 billion.
ATG paid SEK39 million in tax and also accounted for SEK2 million in positive foreign currency translation impact. This meant it ended the nine-month period with SEK1.08 billion in net profit, some 12% behind last year.
Both Svenska Spel and ATG reported year-on-year financial growth during the third quarter.