Swedish Operator Faces Headwinds in the Second Quarter, Though Solid H1 Performance Cushions Overall Half-Year Results
Sweden’s premier gaming and racing operator, AB Trav och Galopp (ATG), experienced a challenging Q2 2026, posting a 4% year-on-year decrease in net gaming revenue (NGR). The downward trend was primarily fueled by a contraction within its core horse racing segment, leading to lower overall revenue and a double-digit decline in net profit for the three-month period ending June 30.
Second Quarter Performance and Segment Breakdown
During Q2, ATG’s net gaming revenue dropped to SEK1.3bn (€117.9m), falling from SEK1.36m in the corresponding period of the previous year. Total revenue mirrored this contraction, slipping 3% to SEK1.5bn, while net profit saw an 11% reduction down to SEK352m.
The primary driver behind the revenue decline was the horse racing division. Horse betting NGR fell 7% year-on-year to SEK936m. Sports betting NGR experienced a modest 3% dip to SEK89m, whereas casino NGR provided a bright spot, climbing 10% to reach SEK177m.
Despite the contraction, horse racing betting maintained its position as ATG’s core business engine, generating 72% of all NGR in Q2. However, this share dipped slightly compared to the 76% contribution recorded in the same quarter last year.
Acting CEO Jörgen Forsberg, who stepped into the role following Hasse Lord Skarplöth’s departure in February and will hold the position until Anna Romboli takes over in December, emphasized the vital role of the sport:
“Horse betting remains the hub of our business and ATG is the engine in financing Swedish horse racing.”
Geographic Performance and Channel Shifts
A granular look at the data reveals that the downturn in horse racing was heavily concentrated in the domestic market. Gross turnover from horse betting in Sweden dropped 8% to SEK2.93bn, whereas international business showed resilience, with gross turnover climbing 13% to SEK1.0bn. Overall gross turnover for all horse betting combined fell 4% to SEK3.95bn.
In regional terms, Swedish sports NGR dropped 4% to SEK174m, while Denmark experienced a marginal increase to SEK15m. Casino operations remained flat in Sweden at SEK120m, but Denmark recorded a sharp 39% surge in casino NGR to SEK57m. Consequently, total Swedish NGR fell 6% to SEK1.2bn, whereas Danish NGR grew 25% to reach SEK104m across all verticals.
Channel distribution showed that digital platforms accounted for the vast majority of income, generating SEK1.21bn in NGR (down 3%), while retail operations brought in SEK97m, marking a steeper 17% decline.
Profitability and Resilient First-Half Totals
On the financial and operational front, ATG saw operating profit fall 11% to SEK361m due to lower NGR and revenue, while operating costs remained largely stable. Pre-tax profit dropped 12% to SEK364m, and comprehensive net profit closed at SEK352m compared to SEK394m in Q2 2025.
Despite the Q2 headwinds, a stronger performance in the first quarter cushioned the blow for the broader half-year figures. For the six months ending June 30, NGR fell just 2% to SEK2.52bn, and total revenue edged down 1% to SEK2.89bn. Due to reduced operating costs, H1 operating profit actually rose 2% to SEK687m, pre-tax profit increased 2% to SEK693m, and comprehensive net profit finished 2% higher at SEK668m.
Reflecting on market conditions, Forsberg noted:
“The first quarter developed overall on a par with the previous year, meaning the decline is mainly attributable to the second quarter. Competition for customers’ time, attention and disposable income remains high. It comes from both other gaming operators – licensed and unlicensed – and from an ever-increasing range of other digital services and experiences. It is up to us to offer attractive products within the framework of a safe and responsible gaming market.”
