SBC News Voice of the Sports Betting Industry
Allwyn International has vowed to improve the financial performance of its Allwyn UK subsidiary, having officially taken on the duties of operating steward of the National Lottery.
In its Q1 trading update, Allwyn International reported that its global lottery brands achieved combined ‘unaudited revenues’ of €2bn-to-€2.05bn.
This marks Allwyn’s first €2bn revenue quarter (Q1 2023: €1.59bn), mainly due to the full contribution from its new UK segment.
With Allwyn UK now the chief operator of the National Lottery, group Q1 capital expenditures (CAPEX) doubled to €45m.
Q1 trading was solid, with Allwyn International maintaining Q1 EBITDA in the expected range (unaudited) of €355-to-€365m, surpassing the 2023 comparative results of €346m.
Allwyn detailed that UK GGR remained flat year-on-year on a constant FX basis, despite Numerical Lotteries outperforming expectations.
The flat UK results contrasted with the performance of Allwyn subsidiaries in Austria and the Czech Republic, which maintained GGR growth despite significant FX impacts.
Period trading ended with Allwyn International securing terms on a $450m new debt note arrangement. The funds will pay off €400m in debt, cover related costs, and be used for general business purposes, with likely conversion to floating € rate.
Ahead of H2 trading, Allwyn announced acquiring a 70% majority stake in Instant Win Gaming (IWG), expected to close in the interim period.
Robert Chvatal, Allwyn CEO, commented: “2024 has started well, with trading broadly in line with our expectations at the start of the year, reflecting good operational and financial performance and our ongoing focus on delivering our growth strategies.
Solid momentum in GGR growth continued in the first quarter, during which Allwyn successfully started the next 10-year licence period of the UK National Lottery. We have delivered further progress in Adjusted EBITDA, and Allwyn remains well positioned for 2024 and for the next chapters of its growth story.”
