SBC News Voice of the Sports Betting Industry
Allwyn International maintains “organic growth” within its legacy markets, as corporate accounts adjust to transformative developments in the UK and North American markets.
Publishing a preliminary (unaudited) trading update, the global lotteries group reported Q3 revenues of €2.14bn, up 7% on the 2023 comparative figure of €2bn.
Growth was driven by strong performances in Austria, where gross gaming revenue (GGR) rose 7%, and Greece and Cyprus, which saw a 17% increase. The UK reported modest growth, with GGR rising 1% on a constant currency basis and 3% on a reported basis.
Capital expenditure (CAPEX) for the quarter doubled to €71 million, primarily due to investments in upgrading the UK National Lottery.
In North America, Allwyn completed the acquisition of a 70% stake in Instant Win Gaming (IWG), the leading supplier of online instant games for North American lotteries. As detailed by accounts “The $242 million deal includes potential earnouts tied to performance” and is aimed at strengthening Allwyn’s content and technology offerings in North America.
Excluding the UK and North America, adjusted EBITDA grew by 12% year-on-year to €410 million, compared to €368 million in Q3 2023.
CEO Robert Chvatal expressed satisfaction with the company’s progress: “We delivered another strong quarter, with notable growth in Greece and Cyprus and solid profitability across the board. Total revenue increased by 7%, driven by our expanding digital channels, innovative product development, and commitment to delivering top-quality content to customers.
As part of our growth strategy, we remain focused on supporting all stakeholders and maintaining a strong emphasis on safe play.”
Regional Highlights
- Greece and Cyprus: Revenue reached €591 million, up 17% year-on-year. This growth was fuelled by a booming online channel, favourable jackpot cycles in Tzoker, and strong iGaming and sports betting activity. Adjusted EBITDA rose by 26% to €213.4 million, supported by cost efficiencies.
- Austria: Revenue grew by 7% to €407.3 million, driven by a 17% increase in numerical lotteries and a 12% rise in iGaming. Adjusted EBITDA dipped slightly, down 2% to €74 million, due to higher personnel costs.
- United Kingdom: Revenue increased by 3% to €980.9 million, despite limited product and channel development under the new National Lottery licence. Adjusted EBITDA fell sharply by 84% to €7 million, reflecting the profitability challenges of the new licensing terms.
Year-to-Date Performance
For the first nine months of 2024, Allwyn’s total revenue reached €6.4 billion, marking a 12% increase compared to the same period in 2023. Adjusted EBITDA was €1.1 billion, a slight 1% increase year-on-year.
Group CEO Chvatal concluded: “We’ve achieved strong profitability, driven by Greece and Cyprus, as well as contributions from our equity method investments. Excluding the UK, Allwyn LS Group, and IWG, adjusted EBITDA rose by 21% year-on-year. The acquisition of IWG has expanded our digital capabilities and strengthened our position in North America. Additionally, our increased interest in OPAP reflects our confidence in its continued success.
As we move forward, I’m confident in our ability to deliver sustainable growth and look forward to the opportunities ahead.”
This straightforward report highlights the company’s progress and focus on adapting to challenges while driving growth in key areas.”
