ATG’s growth remains unchanged as the Swedish company deals with external economic pressures

(AsiaGameHub) –   AB Trav och Galopp (ATG) has experienced a ‘continued tough market situation’ that has impacted its performance in the first quarter. The company is implementing redundancies and an internal restructuring as part of its strategy to manage external economic pressures.

In its financial results for the three months ending March 31, 2026, the Swedish operator reported that its top-line figures were ‘on par with the previous year,’ necessitating an internal reorganization to streamline operations.

Total revenue for the period reached SEK 1.4bn (£111.9m), representing a slight increase of just under 1% compared to the same period last year. Net gaming revenue exceeded SEK 1.2bn.

A difficult quarter for sports betting

Casino appears to be the primary driver of growth, with revenue increasing by 20% during the period. However, ATG noted that this growth was ‘partly due to one-off events in 2025’.

The results stated: “The growth in casino includes one-time effects in the comparison figures, but even taking that into account, there is growth.”

The company’s core horse racing division remained relatively stable, despite increased international interest in the vertical. In contrast, overall sports betting saw an 11% decline.

“Horse betting is stable and still our largest gaming product. It is also the foundation of our business and the commitment to horse betting is strong, both externally and internally,” ATG commented.

“The sports product area had a weaker quarter, with net gaming revenue down around 11% year-on-year. This is mainly due to the outcome of sporting results, as this type of variation is not uncommon between quarters. At the same time, we see signs that we need to continue developing our offering to our customers.”

Despite the subdued performance, ATG remains optimistic about regaining momentum in the latter half of the year.

Lotta Nilsson, Chief Financial Officer and Deputy Chief Executive Officer at ATG, stated: “We are improving our results in a continued tough market situation.

“It is a statement of strength. At the same time, we are not satisfied with the development of revenue – it should increase, and we are acting to have an effect already during the year.”

Leadership reshuffles have had an impact

The beginning of the year presented challenges for ATG, not only in terms of revenue growth but also with significant leadership changes. In February, CEO Hans Lord Skarplöth stepped down after 13 years. Peter Norman was initially appointed acting CEO, but a few weeks later, Jörgen Forsberg, CEO of Svensk Travsport, was named the new acting CEO pending the hiring of a permanent replacement. During this period, Nilsson also took on the role of Vice President.

A complete leadership overhaul is a substantial undertaking for any company. ATG navigated these changes while simultaneously managing an overall company restructuring that led to a reduction in its workforce.

Looking beyond Sweden

Despite the internal challenges, potential new growth opportunities are emerging, though their presence within Sweden remains uncertain. ATG’s Q1 results highlight its international strategy as a key long-term growth catalyst.

ATG’s Danish operations are reportedly ‘developing well,’ with a 13% increase in overall NGR (in Swedish Kroner) during Q1 2026. Similar to Sweden, this growth was primarily driven by casino (55%), followed by horse racing (27%) and sports betting (18%).

Furthermore, ATG is exploring new opportunities in Finland through its Hippos ATG subsidiary, contingent on regulatory approvals. With the market preparing for licensing and regulated operators expected to launch in 2027, expansion into Finland could provide a vital new revenue stream, offsetting challenges posed by Sweden’s mature market and regulatory landscape.

Beyond specific regional subsidiaries, ATG is committed to actively expanding its international horse racing betting business throughout 2026. In Q1, this division generated SEK 817m, a 13% increase compared to the same period in 2025. This international expansion strategy is heavily reliant on distributing its proprietary racing content and betting pools to global partners.

The results concluded: “We have several challenges ahead of us, the biggest of which is creating growth in horse racing. At its core, ATG is something unique: a gaming company with a mission that extends beyond numbers and balance sheets. The values that horse betting holds.

“The community, the analysis and the presence in the experience itself provide direction in our mission: to create revenue for Swedish trotting and galloping sports. We do this by continuing to offer exciting games in a fair and smooth way.

“Our mission remains the same – we will be the horse industry’s engine and the gaming industry’s compass.”