Allwyn reports 114.7% rise in revenue for Q2

Its acquisitions of Camelot drove revenue up to €2.05bn.

Czech Republic.- Allwyn has reported revenue of €2.05bn for the second quarter, a rise of 114.7 per cent year-on-year. Revenue was boosted by its acquisitions of Camelot UK and Camelot Lottery Solutions from the Ontario Teachers’ Pension Plan as part of its preparations to take over the running of the UK National Lottery.

Gross gaming revenue was €1.96bn, up 115.3 per cent. Excluding the impact of the Camelot acquisitions, total revenue would have been €1.02bn, up 7.1 per cent year-on-year. Operating EBITDA was up 29.3 per cent at €357.2m, while adjusted EBITDA was up 34.6 per cent at €381m.

Looking at the results market by market, the impact of the UK acquisitions is clear. UK revenue was €980.3m, all of it from the National Lottery. That compares to revenue of €557m from Italy, €521m from Greece and Cyprus, €373.5m from Austria and €126.2m from Allywn’s home market of the Czech Republic. Allwyn LS Group reported €47.1m from state lottery operations in Illinois.

Allwyn highlighted strong performance in video lottery terminals and casinos, instant lotteries and igaming in Austria but said numerical lottery revenue fell due to shorter jackpot cycles in EuroMillions. In the Czech Republic, igaming and instant lottery products performed well, the company said.

For the six months to June 30, revenue almost doubled, reaching €3.69bn. Excluding the Camelot acquisitions, group revenue was up 11.8 per cent at €2.09bn.

Allwyn chief executive Robert Chvátal said: “I am pleased to report that Allwyn delivered another quarter of strong growth, profitability and strategic progress. We delivered organic revenue growth across markets and also saw a further step up in profit and free cash flow generation owing to this being the first full quarter of ownership of our recent acquisitions.”

He added: “I am happy to report that the good performance in our existing geographies was driven primarily by strong growth in digital, where we have sustained our momentum in product development and innovation.

“Alongside this, we continue to evolve and digitise the customer proposition in physical retail. During the quarter, we once again saw resilience of demand for our products, even in an environment where consumer spending remains under pressure.”

“We continued to deliver strong margins and solid free cash flow generation, with only a limited impact of inflation on our cost base, reflecting our favourable cost structure, with our largest cost categories being directly linked to revenue and our focus on cost and capital efficiency. Overall, I am very pleased with Allwyn’s continued progress. I believe we are well placed for the rest of 2023 and the next chapters of our growth story.”

Last month, Allwyn named Martin Novák as its UK data director. He takes up responsibility for data strategy for Allwyn’s operation of the UK National Lottery. Novák joined Allwyn over seven years ago as a senior CRM specialist. He has spent the last five years as head of business intelligence.