Allwyn International posts 28% rise in Q1 revenue on UK licence addition

Lottery giant sees revenue leap thanks to National Lottery as 60% decline in EBITDA from market fails to move the needle at group level
The post Allwyn International posts 28% rise in Q1 revenue on UK licence addition first appeared on EGR Intel.  

Allwyn International has recorded €2.1bn in Q1 2024 revenue driven by the contribution from the UK National Lottery after it took the licence on from 1 February.

The operator explained that this 28% year-on-year (YoY) rise, up from €1.6bn after the first three months of last year, can be attributed to the UK’s addition to the revenue mix.

However, the UK division showed downturns on key metrics, including net revenue and adjusted EBITDA.

UK total revenue was recorded at €957.5m, down 6% from the €1bn reported in Q1 2023.

Allwyn did note Q1 2023 included an extra week and that any downturns were related to product and channel developments.

Adjusted EBITDA in the region was €17.8m, a 60% YoY decrease from 2023’s €44.8m, with Allwyn citing “substantially lower profitability in February and March”.

Excluding both the UK segment and Allwyn LS, consolidated in March 2023, revenue still rose 3% YoY to €1.1bn.

Group adjusted EBITDA saw a YoY increase of 3%, sitting at €357.8m, a slight rise from last year’s Q1 total of €346.7m.

However, operating EBITDA decreased 4% YoY, declining from €329.4m in 2023 to €316m this year.

Geographically, Allwyn’s Czechia segment recorded a 4% YoY rise in total revenue to €130.4m, in contrast to the €125.4m posted in Q1 2023.

There was a slightly more notable rise in GGR, increasing 5% YoY to €126.3m from €120.8m.

Austria followed a similar path to Czechia, recording a 3% YoY increase in both total revenue and GGR.

Austria’s total posted at €400m, rising from Q1 2023’s tally of €388.4m, while Czechia generated €385.9m, a notable increase from last year’s amount of €374.7m.

It was a strong performance for Allwyn in Italy, with results showing an 8% YoY climb in total revenue, rising from €584m in 2023 to €632.3m in the first three months of this year.  

Allwyn’s Greece and Cyprus arm continued the positive trend, with total revenue recorded at €571.5m, representing a 4% YoY increase from last year’s total of €551.9m.

Robert Chvátal, Allwyn CEO, talked up the strong start as well as the group’s UK National Lottery operation having been awarded the license in February of last year.

“I am pleased to report that 2024 has started well, with solid operational and financial performance in the first quarter, supported by our ongoing focus on our growth strategies,” he explained.

“Q1 also included a key milestone in Allwyn’s history, with our successful start of operation of the UK National Lottery under a new 10-year licence.

“This represented the coming to fruition of many years of dedication by a team from across our geographies, and we are excited to have already started work on transforming the UK National Lottery for the benefit of all stakeholders.

“We delivered solid profitability, with a strong performance from our equity method investees contributing to adjusted EBITDA growth of 3% year-on-year.”

Chvátal went on to insist that he is confident that Allwyn is in a strong position for growth to continue over the course of the remainder of the year.

He added: “With respect to inorganic growth during the quarter, as well as starting operations under the new UK National Lottery licence, we also announced our plan to partner globally with and invest in Instant Win Gaming, a leading supplier of online instant win games.

“Through our inorganic growth strategy, we continue to expand our footprint and capabilities.

“Overall, I am pleased with the start to the year and believe we are well-placed for the remainder of 2024 and the next chapters of our growth story.”

The post Allwyn International posts 28% rise in Q1 revenue on UK licence addition first appeared on EGR Intel.

 

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