European lottery group Allwyn reported consolidated revenue of €2 billion ($2.14 billion) for the first time in its preliminary unaudited results for the second quarter ended June 30, a rise of 114.7% year-on-year.
Robert Chvatal, CEO of Allwyn, commented favorably on the results achieved during the three-month period: “I am pleased to report that Allwyn delivered another quarter of strong growth, profitability, and strategic progress.“
The company noted that the rise in consolidated revenue was driven by its recent acquisitions, namely its purchase of Camelot UK Lotteries in February this year; and Camelot’s US-facing group of companies, Camelot Lottery Solutions, which was completed in March this year. According to the company, excluding these acquisitions, the consolidated total revenue was €1 billion ($1.07 billion), which was a rise of just 7.1% yearly.
“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, Camelot UK and Allwyn LS Group (formerly Camelot LS Group),” Chvatal added.
The group acquired Camelot UK in February this year. The agreement covers all Camelot’s UK operations, including current rights to operate the National Lottery until February 2024. Allwyn will take over from this date after it was awarded the fourth National Lottery license.
This followed Allwyn finalising an agreement to acquire US-facing Camelot LS, since renamed Allwyn LS Group, in January. Both were purchased from the Ontario Teachers’ Pension Plan Board (OTPP).
According to the company, gross gaming revenue (GGR) totaled €1.96 billion ($2.10 billion) for the period, an increase of 115.3%. Meanwhile, net revenue was €906.7 million ($971.9 million), a rise of 51%. EBITDA was €381 million ($408.4 million), a rise of 29% compared to the same quarter the prior year.
In terms of operating locations, Allwyn recorded a total revenue of €373.5 million ($399.8 million) in Austria, which was up by 1% yearly, while Italian revenue reached €557 million ($597 million). Furthermore, total revenue in the Czech Republic and Greece, and Cyprus also rose. For the Czech Republic, total revenue was €126.2 million ($135.2 million); while in Greece and Cyprus, the total revenue was €521 million ($558.4 million), up by 13%.
However, in the UK, Allwyn saw a 3% dip in total revenues to €980.3 million ($1.05 billion).
H1 Results
For the six months ended June 30, revenue almost doubled year-on-year from €1.87 billion ($2 billion) to €3.69 billion ($3.95 billion). Excluding the acquisition impact, group revenue climbed 11.8% to €2.09 billion ($2.24 billion).
UK revenue in H1 hit €2 billion ($2.14 billion), while Italian revenue reached €1.14 billion ($1.22 billion) and Greece and Cyprus revenue reached €1.07 billion ($1.14 billion). Moreover, revenue in Austria amounted to €761.8 million ($816.5 million), while revenue in the Czech Republic reached €251.6 million ($269.6 million) and Allwyn LS Group €93.6 million ($100.3 million).
Operating EBITDA was 26.3% higher at €686.6 million ($735.9 million) and adjusted EBITDA increased by 31.6% to €727.7 million ($780.03 million). Adjusted free cash flow in the half climbed 30% to €685 million ($734.2).
Robert Chvatal, CEO of Allwyn
“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 favorable cost structure, with our largest cost categories being directly linked to revenue and our focus on cost and capital efficiency,” Chvatal commented.
“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,” the CEO concluded.
Access here to see Allywn’s complete Q2 report.