Allwyn publishes first Q1 results since Camelot UK acquisition

Allwyn’s revenue was up 80 per cent year-on-year.

Czech Republic.- Allwyn International has reported its unaudited Q1 results, recording revenue of €1.64bn. That’s a rise of 80 per cent year-on-year and follows the incorporation of incumbent UK National Lottery operator Camelot UK as well as US-based Camelot Lottery Solutions.

Excluding the two Camelot acquisitions from the Ontario Teachers’ Pension Fund, Allwyn’s revenue growth would have been 17 per cent to €1.06bn. It attributed the growth to improved digital channels and a focus on the customer proposition in retail.

Including Camelot, pro-rata group adjusted EBITDA was up by 62 per cent at €280m. Pro-forma adjusted EBITDA excluding Camelot costs stands at €325m, up 20 per cent.

Allwyn CEO Robert Chvatal said: “I am pleased to report that Allwyn had a strong start to the year, reflecting our ongoing focus on driving organic growth as well as continued progress in our inorganic growth strategy, with the results of the first quarter including the contribution from a total of seven lottery markets. Meanwhile, we have remained focused on our responsibilities to all our stakeholders and on safer gaming.”

Allwyn says its business is resilient in the face of inflationary pressures thanks to its “low product price points, low average customer spend, and a large number of regular players”. It said that its group-wide profitability is supported by a cost structure linking a “significant portion of costs directly to revenues and a low proportion of energy in the cost base”.

Chvatal said: “We continued to deliver strong margins and to generate robust free cashflow, reflecting our favourable cost structure and focus on cost and capital efficiency.

“The completion of two landmark acquisitions in the first quarter underscores our continued success in executing our inorganic growth strategy. The acquisition of Camelot UK, the current operator of the UK National Lottery, supports the successful delivery of the National Lottery through 2023 and over the next decade.

“The acquisition of Camelot LS Group marks our entrance to the US market as well as providing interesting strategic optionality through its in-house iLottery technology.”