Allwyn International has showcased its new business profile after incorporating Camelot UK to its European gaming and lottery subsidiaries portfolio.
Publishing its Q1 2023 unaudited accounts, an enlarged Allwyn generated consolidated revenues of €1.64bn, an 80% surge on 2022 comparative results of €914m.
As reported, Q1 trading saw Allwyn execute the acquisitions of Camelot UK Lotteries Limited and Camelot Lottery Solutions group of companies, the current operating firms of the UK National Lottery and Illinois Lottery respectively.
On a comparable basis, excluding Camelot Acquisitions, Allwyn underscored its continued ‘organic growth’ capabilities as total like-for-like revenues increased by 17% to €1.06bn.
Commercial growth was attributed to the firm’s strengthened digital channels and focus on the customer proposition within the retail space, to help overcome remaining COVID-19 impacts.
Accounting for Camelot’s acquisition, on a pro-rata basis, group adjusted EBITDA would increase by 62% to €280m (Q12022: €173m). Whilst on a pro-forma basis excluding Camelot costs, adjusted EBITDA would stand at €325m (+20%).
Robert Chvatal, Allwyn CEO, commented: “I am pleased to report that Allwyn had a strong start to the year, reflecting our ongoing focus on driving organic growth as well as continued progress in our inorganic growth strategy, with the results of the first quarter including the contribution from a total of seven lottery markets. Meanwhile, we have remained focused on our responsibilities to all our stakeholders and on safer gaming.”
It was noted that due to differences in the business models of the newly acquired companies, the “consolidated metrics and margins in Q1 2023 are not directly comparable with previous or future quarters.”
Of significance, Allwyn states that its pan-European business model remains resilient against “inflationary pressures impacting consumer sentiment” in which its commercial activities are aided by “low product price points, low average customer spend, and a large number of regular players.”
Moving forward, Allwyn maintains focus on its primary goal to consolidate Camelot UK, the current operator of the UK National Lottery, under a license running until 31 January 2024.
Expanding its operations, Allwyn cited that group-wide profitability will be supported by a cost structure that links “significant portion of costs directly to revenues and a low proportion of energy in the cost base.”
Chvatal concluded: “We continued to deliver strong margins and to generate robust free cashflow, reflecting our favourable cost structure and focus on cost and capital efficiency.
“The completion of two landmark acquisitions in the first quarter underscores our continued success in executing our inorganic growth strategy. The acquisition of Camelot UK, the current operator of the UK National Lottery, supports the successful delivery of the National Lottery through 2023 and over the next decade.
“The acquisition of Camelot LS Group marks our entrance to the US market as well as providing interesting strategic optionality through its in-house iLottery technology”