In a significant financial surge, Allwyn Entertainment has reported impressive revenue growth for the first quarter ending on March 31, 2023. The company disclosed that its revenue hit €2.11 billion (£1.80 billion/$2.30 billion), marking a substantial increase from the €1.65 billion recorded during the same period last year. This resurgence aligns with previously issued guidance and highlights Allwyn’s strategic successes.
Gross gaming revenue, which encapsulates revenue from all gaming activities, saw a notable 27.1% jump, reaching €2.02 billion. Additionally, net revenue climbed by 16.0%, totaling €940.9 million for the quarter. Analyzing these numbers, Allwyn CEO Robert Chvatal attributed the most significant catalyst for this growth to the company’s recent takeover of the UK National Lottery.
The National Lottery transition, a major milestone in Allwyn’s history, officially took place on February 1, with Allwyn succeeding Camelot as the operator. Camelot had managed the National Lottery since its inception in 1994. With this change, Allwyn assumed comprehensive responsibility for all National Lottery operations and products, which range from main Lotto draws to Set For Life, Thunderball, and Hotpicks, in addition to scratchcards and the UK’s access to the Europe-wide EuroMillions game.
“Taking over the National Lottery was the fruition of many years of dedication by a team spread across our geographic locations,” Chvatal stated. “We are thrilled with the initial success of our tenure as licensee and have already started working towards transforming the UK National Lottery for the benefit of all stakeholders.”
Furthermore, Chvatal emphasized the impact of recent mergers and acquisitions (M&A), particularly the purchase of Camelot UK in February 2023. Earlier in the year, Allwyn also acquired Camelot Lottery Solutions, now rebranded as Allwyn LS Group. These acquisitions were strategic moves that granted Allwyn deeper insight and prepared the company to manage the National Lottery effectively.
Excluding the impact of UK operations and the Allwyn LS acquisition, the company noted that its revenue would have only seen a 3.0% increase in Q1.
. This underscores the profound impact that these strategic acquisitions had on Allwyn’s overall performance.
Moreover, in Q1, Allwyn announced a deal to purchase a 70% stake in Instant Win Gaming, an online content developer. This acquisition is poised to drive global growth and further extend Allwyn’s reach. “Through our inorganic growth strategy, we continue to expand our footprint and capabilities,” Chvatal said confidently.
Beyond these significant acquisitions and partnerships, Chvatal highlighted other factors that fueled growth in Q1. These included the expansion of Allwyn’s digital business across various markets, ongoing product development, and the introduction of innovative gaming solutions, such as the launch of Eurojackpot in Greece. The latter brings a multinational jackpot game to Greek players for the first time, marking a new era in the country’s gaming landscape.
Additional strides were made in enhancing customer loyalty schemes and advancing the digitalisation of retail operations. Such initiatives, combined with the developments in the UK and the acquisition of Allwyn LS, led to a substantial increase in both revenue and adjusted EBITDA. The latter saw a staggering 141.6% year-on-year increase, reaching €41.8 million, with a margin of 38.0%.
In the realm of financing, Allwyn strengthened its position by securing €500.0 million worth of accordion facilities under its senior facilities agreement in Q1. These efforts were further bolstered after the quarter’s end, marked by the recent syndication of a $450.0 million term loan B (TLB) facility. “This was our debut term loan B transaction, and it has diversified our access to capital,” Chvatal explained. “I am very pleased that both transactions received robust support from existing and new lenders.”
Summing up the strong start to the year, Chvatal expressed optimism for the future. “Overall, I am pleased with our progress. We are well-placed for the remainder of 2024 and look forward to the next chapters of our growth story.”
As Allwyn ventures further into the year, the strategic moves and financial triumphs of Q1 suggest that the company is on a well-charted course for continued success and expansion. With the takeover of the National Lottery, key acquisitions, and innovative digital growth strategies, Allwyn appears poised to maintain its upward trajectory in the gaming industry.
