In a significant corporate development, Allwyn, previously known as Sazka, has seen its revenue catapult by a staggering 97.5% in the financial year 2023, marking a red-letter period in the organization’s history. The company, renowned for its lottery and gaming operations, has been a leading name in the field, and its recent financial results underscore its growing influence in the industry.
At the forefront of this success story was the formal awarding of the fourth National Lottery licence to Allwyn in September 2022, a pivotal moment that followed a fiercely competitive bidding process. Allwyn’s contenders in this high-stakes rivalry included The New Lottery Company, Sisal, and the former operator, Camelot. Rising to the challenge, Allwyn commenced its tenure over the UK National Lottery just last month, embarking on a ten-year journey to redefine lottery experiences in the United Kingdom.
However, Allwyn’s ascendancy to the lottery throne did not occur without contention. The announcement of Allwyn’s preferred applicant status for the licence incited a backlash from Camelot and International Game Technology (IGT), who took their grievances to the High Court. Nonetheless, a resolution emerged as Camelot’s challenge was subsequently withdrawn, and IGT’s claim was dismissed by the court.
Marking the New Year with ambition, Allwyn wasted no time consolidating its position. Mere days into January 2023, the company confirmed plans to acquire Camelot’s US business, Camelot Lottery Solutions (Camelot LS). This strategic move culminated in March, with the details of the deal remaining under wraps.
Camelot LS subsequently underwent a rebranding to become Allwyn North America. The move was a follow-up to Allwyn’s agreement in November 2022 to acquire Camelot UK, signaling the company’s aggressive inorganic growth strategy.
Robert Chvatal, CEO of Allwyn, embraced the year as one that embodied the fruition of their strategic goals. “I am pleased to report that 2023 was another year of strong financial and operational performance and strategic progress,” Chvatal reflected with satisfaction. He outlined the year as one where Allwyn not only continued to drive growth strategies but also upheld its commitment to safer play and accountability to stakeholders.
Highlighting the operational highlights, the company reported a gross gaming revenue (GGR) amassing to €7.54 billion for 2023, noting a substantial year-on-year surge of 98.0%. Meanwhile, Allwyn’s financial results, when excluding the recent Camelot acquisitions, would yield a revenue of €4.24 billion for 2023, which is indicative of a 6.4% increase from the financial year 2022. Adjusting for these acquisitions, the GGR would have tallied at €4.07 billion, marking a 6.8% rise.
Geographically, Allwyn’s performance was most robust in the UK, with revenues peaking at €3.92 billion, although this signified a 3.9% decrement from the previous year. This dip was partly attributed to constrained opportunities for product and channel expansion as the previous licence tenure approached its cessation. On brighter notes, revenues in Greece and Cyprus soared by 7.0%, reaching €2.18 billion, buoyed by a thriving igaming sector.
The Italian market saw a modest enhancement in revenue, climbing by 2.3% to €2.29 billion. Austrian revenues accrued to €1.53 billion. Conversely, the Czech Republic posted an impressive 10.2% revenue growth to €519.3 million, which Allwyn ascribed to robust performances across Numerical Lotteries, Instant Lotteries, and igaming spheres. Cumulatively, for these markets, net revenue surged 41.7% to €3.58 billion.
Allwyn’s operating EBITDA rose by a solid 17.8% to €1.33 billion. After factoring in EBITDA adjustments to the tune of €150.4 million, the Adjusted EBITDA clocked in at €1.48 billion, epitomizing growth of 27.1%. At the close of the year, Allwyn enjoyed an adjusted free cash flow of €1.38 billion.
Focusing on Allwyn’s 2023 performance sans the Camelot takeovers, net revenue ascended to €2.70 billion, marking a 7.0% increase year-on-year. The operating EBITDA amounted to €1.15 billion, while the Adjusted EBITDA reached €1.31 billion.
Assessing the fourth-quarter performance, Allwyn tallied a revenue of €2.17 billion, up by a notable 96.5%, which constituted 27.6% of the full year’s revenue. GGR hit €2.07 billion, a 96.7% rise, forming 95.4% of the revenue for the year. Net revenue in this quarter experienced a 29.5% uptick to €987.8 million. Operating EBITDA registered at €336.8 million, with Adjusted EBITDA realizing €388.5 million.
On the segment front, Austria saw a minor Q4 revenue decrease of 1.4% to €397.1 million, owing to lower yields in Numerical Lotteries. Contrarily, Czech Republic revenue advanced by 9.0% to €144.6 million, with “significantly lower” marketing expenses. In Greece and Cyprus, Q4’s revenue growth of 6.9% was ascribed to persistent enhancements to Allwyn’s customer proposals. The United Kingdom’s Q4 revenue suffered a slight 1.9% decline to €975.3 million, which was entirely GGR.
In conclusion, Allwyn’s financial year 2023 can be characterized by robust growth dynamics, strategic acquisitions, and the successful navigation of an evolving gaming landscape. With a solidified presence following the Camelot acquisitions and strategic regional performances, Allwyn is poised to continue its trajectory of growth and industry leadership in the years to come.
