ATG reports a 3% Q3 revenue decline as horse racing and betting both weaken

Swedish gambling operator ATG recorded total revenue of SEK 1.42 billion in the third quarter of 2026, representing a 3% decrease compared with the same period last year. Operating profit declined by 10% to SEK 392 million as lower revenue from horseracing and sports betting outweighed continued growth in casino activity. Although the casino segment delivered a stronger performance, the increase was insufficient to compensate for the contraction in the company's two other principal gaming categories.

The results highlight the challenges facing ATG as it balances its traditional connection to Swedish horse racing with the development of its broader betting and casino operations. Performance in Denmark offered a positive counterpoint to the declines in Sweden, particularly through the contribution of subsidiary 25Syv. However, the overall figures indicate that growth in individual segments has not yet been enough to reverse the group's year-on-year revenue decline.

Revenue and profitability move lower

ATG's net gaming revenue (NGR) decreased by 4% to SEK 1.25 billion during the reporting period. The company also recorded lower earnings across several financial measures. EBITDA fell to SEK 455 million from SEK 498 million a year earlier, while net income declined to SEK 386 million from SEK 428 million.

The operating margin narrowed to 28%, compared with 30% in the third quarter of 2025. These results show that the decline extended beyond the headline revenue figure, with profitability measures also moving lower over the period.

Operating costs rose to SEK 720 million from SEK 709 million in the corresponding quarter last year. Meanwhile, gambling tax decreased to SEK 309 million from SEK 324 million. The combination of weaker revenue and higher operating costs contributed to the reduction in operating profit, according to the reported results.

ATG also indicated that expenses associated with its autumn reorganisation would be reflected in the fourth quarter. These additional costs may therefore affect the financial comparison in the next reporting period, although their overall impact will depend on the final expenditure recorded and the company's operating performance.

Horseracing and sports betting remain under pressure

Horseracing continued to account for the largest share of ATG's net gaming revenue. However, NGR from the segment fell by 6% to SEK 902 million, reflecting a weaker result for a category central to the company's traditional business.

The decline also extended across different geographical markets. Swedish horseracing turnover decreased by 7% during the third quarter, while international horseracing turnover increased by 1%. The contrasting figures suggest that international activity provided some support but did not fully offset the reduction in the Swedish market.

Sports betting was another area of weakness. NGR from the segment fell by 9% to SEK 156 million compared with the previous year. Since horseracing and sports betting together represent important parts of ATG's business, their simultaneous declines placed pressure on the group's overall performance.

The figures also underline the different trends within ATG's portfolio. While the company recorded growth in casino NGR, its larger horseracing segment and its sports betting business experienced lower revenue. Consequently, gains in one area were not sufficient to deliver positive overall growth.

Casino growth provides a partial offset

Casino activity was the strongest-performing major segment in percentage terms. ATG's casino NGR increased by 13% to SEK 189 million in the third quarter, providing a measure of support as other categories weakened.

The increase was driven by the Danish business rather than by the Swedish casino market. In Sweden, casino NGR declined to SEK 120 million from SEK 127 million a year earlier. The Swedish result therefore contrasted with the group's overall casino performance.

This distinction is important when assessing the company's results. The consolidated increase in casino NGR did not represent uniform growth across ATG's markets. Instead, the figures point to a substantial contribution from Denmark, where the company's subsidiary delivered stronger reported results.

Casino activity consequently helped cushion the effects of lower horseracing and sports betting revenue. Nevertheless, its contribution remained too small to prevent the group's total NGR from declining.

Danish subsidiary 25Syv delivers stronger results

ATG's Danish subsidiary 25Syv reported NGR of SEK 119 million, up 45% in Swedish kronor from SEK 82 million in the third quarter of 2025. The figures establish Denmark as a significant contributor to the group's casino growth during the period.

Casino NGR at 25Syv increased to SEK 69 million from SEK 40 million. This improvement contrasts with the decline recorded by ATG's Swedish casino operation and explains why the consolidated casino segment performed better than the domestic business alone.

The comparison illustrates the differing performance of ATG's geographical operations. Denmark generated stronger growth for the subsidiary, while the Swedish business faced declines in horseracing, sports betting and casino NGR.

Currency-based comparisons also require context. The 45% increase cited for 25Syv is measured in Swedish kronor, which is the reporting currency used in the group figures. It should not automatically be interpreted as an equivalent increase in revenue measured in Danish kroner.

Organisational changes and leadership transition

ATG introduced an organisational restructuring on 1 October 2026. The changes included the creation of a dedicated Product division and a revised allocation of commercial responsibilities across horseracing, sports betting and casino.

The restructuring comes as the company seeks to organise its product development and commercial activities around its main business areas. The financial effect of the changes will be clearer once the company reports the associated expenditure and subsequent operating results.

A leadership transition is also scheduled for the end of the year. Anna Romboli is due to become ATG's chief executive officer in December 2026, succeeding the interim leadership that has overseen the business since March.

Romboli's appointment represents another development in ATG's management transition. Her arrival will coincide with a period in which the company is addressing weaker results in its established betting categories while continuing to develop its casino activities and broader product offering.

Swedish gambling market provides wider context

ATG's third-quarter performance comes against a broader market background that showed growth earlier in 2026. According to the Swedish Gambling Authority, known as Spelinspektionen, gambling operators holding Swedish licences generated SEK 7.4 billion in the second quarter of 2026. That represented an increase of 5.1% compared with the same quarter in 2025.

Commercial online gambling and betting generated more than SEK 4.9 billion during the quarter, increasing by over 7% year on year. The market figures indicate that the wider industry recorded growth in the second quarter, even as ATG's third-quarter results showed a decline in revenue.

The comparison should be treated with care because the periods and reporting measures differ. The regulator's market turnover figures are based on player stakes minus winnings, while ATG's reported financial results include its own revenue and net gaming revenue measures. The second-quarter market figures therefore provide background rather than a direct benchmark for ATG's third-quarter performance.

Comparable market-wide figures for the third quarter were not available when ATG's results were reported. It is consequently too early to determine from these figures alone whether ATG's decline reflects a broader change in market conditions or developments specific to its business mix.

ATG's ownership makes horseracing performance significant

ATG occupies a distinctive position in Sweden's gambling sector because its ownership is directly connected to the country's horse-racing industry. The company is owned by Svensk Travsport, the Swedish trotting association and Svensk Galopp, the Swedish horseracing authority. The ownership structure links ATG's commercial performance to the organisations responsible for developing and supporting these sports.

The company's financial contribution is therefore relevant beyond its own operating results. Revenue and profitability influence its capacity to support the activities associated with its owners. For that reason, the continuing decline in horseracing NGR is a significant development for both ATG and the broader racing sector.

However, a single quarter does not establish a long-term direction for the entire industry. The reported figures show a year-on-year decline in ATG's horseracing revenue, but a fuller assessment would require additional reporting periods and broader information about racing participation, market demand and the company's financial contributions.

Conclusion: ATG faces a balancing act between growth and tradition

ATG's third-quarter 2026 results present a mixed picture of its business. Total revenue declined by 3% to SEK 1.42 billion, operating profit fell by 10% to SEK 392 million and group NGR decreased by 4% to SEK 1.25 billion. The principal pressure came from horseracing and sports betting, while casino growth offered only a partial offset.

The Danish subsidiary 25Syv provided an important source of positive momentum, with higher casino NGR contributing to the overall growth of the segment. Yet the contrasting results between Denmark and Sweden demonstrate that performance varies across ATG's operations and that gains in one market do not necessarily translate into stronger consolidated results.

The forthcoming leadership transition and organisational changes add further significance to the next reporting period. Fourth-quarter figures should provide more information about restructuring expenditure and whether the company can stabilise revenue across its principal business areas.

For ATG, the central challenge is to support sustainable commercial performance while maintaining its connection to Swedish horseracing. The coming quarters will help establish whether the growth recorded in casino operations can become a more substantial contributor to the group's overall results and whether declines in its traditional betting categories begin to moderate.

FAQs

What were ATG's total revenues in the third quarter of 2026?
ATG reported total revenue of SEK 1.42 billion for the third quarter of 2026, representing a 3% decrease compared with the same quarter in 2025.

How much did ATG's operating profit decline?
Operating profit decreased by 10% year on year to SEK 392 million in the third quarter of 2026.

What was ATG's net gaming revenue in Q3 2026?
Group net gaming revenue fell by 4% to SEK 1.25 billion compared with the corresponding period a year earlier.

Which ATG business segment performed best during the quarter?
Casino delivered the strongest percentage growth among the three main segments. Its NGR increased by 13% to SEK 189 million.

Why did ATG's casino revenue increase?
Growth was driven primarily by the Danish subsidiary 25Syv. Its casino NGR increased to SEK 69 million from SEK 40 million a year earlier.

How did ATG's horseracing revenue perform?
Horseracing NGR decreased by 6% to SEK 902 million. Swedish horseracing turnover fell by 7%, while international turnover increased by 1%.

What happened to ATG's sports betting revenue?
Sports betting NGR declined by 9% to SEK 156 million during the third quarter of 2026.

Who is expected to become ATG's next CEO?
Anna Romboli is scheduled to take over as chief executive officer in December 2026, following a period of interim leadership.

When did ATG's organisational restructuring take effect?
The restructuring took effect on 1 October 2026. It included the creation of a Product division and changes to commercial responsibilities across its principal business areas.

Why are ATG's financial results important to Swedish horseracing?
ATG is owned by Svensk Travsport and Svensk Galopp and its financial contribution helps support Swedish trotting and galloping. Its commercial performance is therefore relevant to the organisations and sports connected to its ownership.