The company confirmed it has reached an agreement with Skarplöth but provided no additional details on the specific nature of the disagreement. ATG has launched an immediate search for a permanent replacement, with board chairman Peter Norman assuming the role of acting CEO. Chief financial officer Lotta Nilsson has been appointed deputy CEO.
12-Year Tenure Concludes
Skarplöth, who joined ATG in 2013, reflected on his tenure at the operator.
“I have had the privilege of being CEO of ATG for a long period,” he said. “It has been a fantastically rewarding time and I have appreciated every day I have gone to work. Together with committed and loyal employees, we have had an unprecedented growth journey.”
“I am proud of what we have achieved and of the position the company has today. I wish ATG all the best in the future with all my heart,”
Skarplöth added.
Norman acknowledged Skarplöth’s contributions during his leadership.
“Hasse has run the company in an exemplary manner, which has also included international expansion,” Norman stated. “The board would like to thank Hasse for his great contributions to ATG over the years and wish him all the best in the future.”
Financial Results Show Decline
The leadership transition comes as ATG reported a 2% decline in net gaming revenue for the full year, falling to SEK5.2bn ($582.6m). The operator’s core horse race betting vertical saw revenue decrease by 1%, while sports betting and casino revenue dropped 2% and 7%, respectively.
Total gaming revenue across all verticals declined 4% to SEK6bn ($672.2m). Despite lower revenue, ATG’s gambling tax payments increased 7% to SEK1.3bn ($145.6m) following Sweden’s tax rate increase from 18% to 22%.
ATG calculated that the four percentage point tax increase reduced the company’s profit by SEK216m ($24.2m) in isolation.
“Both the lower revenues and the increased gambling tax directly affect the return to our owners and thus weaken the financing of equestrian sports. It is a development we are taking seriously,”
said Nilsson.
Challenges for Swedish Horse Industry
Norman emphasized the operator’s ongoing commitment to its mission despite current headwinds. “ATG is in a strong position today. Our task of creating the best possible conditions for a strong horse industry in Sweden is more important than ever as the horse industry is facing a number of challenges,” he said.
“Our entire surplus goes to our owners, Svensk Travsport and Svensk Galopp, and by extension the entire Swedish horse industry,”
Norman added.
ATG operates under a monopoly license for horse race betting in Sweden, with all profits distributed to Svensk Travsport and Svensk Galopp, the governing bodies for Swedish trotting and thoroughbred racing. The company also offers sports betting and online casino products in the competitive Swedish market, which re-regulated in 2019.
Source: AB Trav och Galopp
