Sweden's major gambling operators Svenska Spel and ATG reported a year-over-year growth in financial results for the third quarter of 2024, with both companies seeing increases in revenue and net profit. Svenska Spel's quarterly net gambling revenue reached 1.87 billion Swedish kronor (approximately $199.4 million), up 7% year-over-year, driven primarily by lottery and sports betting, although revenue from physical slot machines fell by 10%. ATG's quarterly net gambling revenue was 1.3 billion Swedish kronor, up 1%, with sports betting performing well with a 6% increase, but casino revenue declined by 1%. Both companies achieved profit growth through cost control and efficiency improvements, with Svenska Spel's net profit up 18.5% to 584 million kronor, and ATG's net profit up 7% to 428 million kronor. Online business continued to expand its share, becoming a major driver of growth.
Overall Performance and Growth Trends
Sweden's two major gambling operators, Svenska Spel and ATG, reported year-over-year growth in financial results for the third quarter of 2024, with increases in both revenue and net profit. This performance marks continued overall growth momentum for both companies despite facing challenges in some business areas.
Growth was primarily due to strong performance in core businesses and effective cost management measures.
Revenue Structure Analysis of Svenska Spel
Svenska Spel's net gambling revenue for the third quarter was 1.87 billion Swedish kronor (approximately $199.4 million), up 7% year-over-year. Growth was mainly from the Tur lottery and sports and casino businesses, with lottery revenue increasing by 7% to 1.31 billion kronor, and sports and casino businesses up 9% to 489 million kronor.
Revenue from physical slot machines declined by 10% to 78 million kronor, mainly due to fewer partners and a severe economic situation in the hospitality industry.
Performance and Segmentation of ATG
ATG's net gambling revenue for the third quarter was 1.3 billion Swedish kronor, up 1% year-over-year, reversing the downward trend of the previous two quarters. Horse racing accounted for 77% of total revenue, at 958 million kronor, roughly flat compared to the same period last year; sports betting revenue grew by 6% to 171 million kronor.
Casino revenue declined by 1% to 167 million kronor, partly due to a decrease in cumulative jackpots.
Online Business Development and Increased Share
Online business has become a key driver of growth, with Svenska Spel's online revenue reaching 1.22 billion Swedish kronor, up 15%, increasing its share of total revenue from 60% to 65%. ATG's digital and online channel revenue was 1.19 billion kronor, up 2%, showing significant effects of digital transformation.
The strong performance of online business offset some of the downward pressure from physical operations.
Profit Increase and Cost Control
Svenska Spel's operating profit grew by 18% to 718 million kronor, and net profit increased by 18.5% to 584 million kronor. ATG's operating profit grew by 9% to 434 million kronor, and net profit increased by 7% to 428 million kronor.
Profit growth was due to increased revenue and effective cost control measures, including lower staff costs and improved operational efficiency.
Challenges and Adjustments in Physical Operations
Svenska Spel's Casino Cosmopol physical casinos have all closed, with the last one in Stockholm closing in mid-year. ATG's retail revenue declined by 8% year-over-year to 109 million kronor, reflecting ongoing challenges in physical operations.
The companies are responding to the decline in physical business through business adjustments and resource optimization.
Management Comments and Strategic Focus
Svenska Spel's President Anna Johnson noted growth was driven by strong brands such as Eurojackpot and Oddset, with two out of three business areas achieving growth. ATG CEO Hasse Lord Skarplöth pointed out that the third quarter was a "small turnaround," emphasizing continued focus on efficiency improvements.
Both companies remain optimistic about future performance, focusing on sustainable growth and long-term competitiveness.
Year-to-Date Performance
For the nine months ending in September, Svenska Spel's net gambling revenue was 5.56 billion kronor, up 2%, and net profit was 1.54 billion kronor, up 8.3%. ATG's net gambling revenue was 3.86 billion kronor, down 3%, and net profit was 1.08 billion kronor, down 12%, reflecting the impact of performance decline in the first half of the year.
Annual data shows Svenska Spel's growth is more stable, while ATG is still in the recovery process.
Market Environment and Future Outlook
The Swedish gambling market continues to show trends of online business growth and physical business adjustments. Changes in the regulatory environment and shifts in consumer preferences affect the direction of industry development. Both companies need to continue optimizing their business structures and balancing the development of different business segments.
Efficiency improvements and digital transformation will be key factors in future competition.
Social Responsibility and Compliance Management
As major gambling operators in Sweden, both companies focus on responsible gambling and fulfilling social responsibilities. Business growth also focuses on consumer protection and social impact, in line with Swedish gambling regulatory framework requirements.
Sustainable operation and compliance management are the foundation for long-term development.
