The newly rebranded lottery giant saw revenue climb by 65 per cent year-on-year.
Czech Republic.- The recently rebranded Allwyn International has reported strong growth in all markets and verticals for Q1 despite “weakened” consumer demand.
It’s reported gross gaming revenue of €869.3m, an increase of 65 per cent from the same quarter in 2021. Net revenue was up 89 per cent year-on-year at €534.4m.
More than half of the revenue came from Greece and Cyprus. The market generated €457.2m, an increase of 162 per cent year-on-year after the former Sazka increased its stake in the lottery operator OPAP to 48.1 per cent in February.
Revenue from Austria, through stakes in Casinos Austria and Austrian Lotteries, accounted for €309.3m, up 52 per cent, and revenue from the Czech Republic was up by 7 per cent to €102.8m.
As for verticals, numerical lotteries remained the top contributor, with revenue rising 32 per cent to €364.3m. Instant lottery revenue rose 30 per cent to €64.2m. Meanwhile, sports betting revenue hit €162.3m, an increase of 76 per cent, and igaming revenue rose 6 per cent to €112.2m. Video lottery terminal and casino revenue was up from €1.4m to €166.3m.
EBITDA for Q1 more than doubled that of the same quarter last year at €267.4m. Profit for the quarter was up almost four times at €128.9m.
Allwyn CEO Robert Chvatal said that there had been challenges during the quarter due to the current macroeconomic situation but that these had not impacted severely on revenue.
He said: “We note that general consumer demand was weaker in the last few months due to persisting inflationary pressures. However, our business has seen only a limited impact so far due to the low price point of our products and low average spend, as well as our large number of regular players.”
Chvatal added: “I am pleased that the first quarter in 2022 was mostly unimpacted by Covid-19, with only some operations in Austria, Greece and Cyprus, and Italy being subject to limited Covid-19 related restrictions, most of which were subsequently lifted during Q2.
“The fully reopened physical retail channel in these markets performed well while online sales continued to be strong across geographies, with the online channel contributing a record 43 per cent of GGR in the Czech Republic.”
The last quarter saw Allwyn named as the preferred applicant to run the UK National Lottery, however the Gambling Commission’s decision to award the tender to the Czech company has been challenged in legal action by the incumbent operator Camelot and other losing bidders. The Gambling Commission is seeking to ensure that the handover can go ahead.