Allwyn Reap Rewards of Camelot Acquisitions with Strong Revenue Growth
LISTEN TO THIS ARTICLE:Allwyn has reported a huge increase in its financial figures for the third quarter (Q3), primarily due to its strategic acquisitions. The company’s consolidated total revenue grew by 98%, reaching €2.01 billion, primarily due to Allwyn’s acquisition of Camelot UK and Camelot Lottery Solutions Group earlier this year.
Impact of Camelot Acquisitions
The acquisition of Camelot UK, the current operator of the UK’s National Lottery, and Camelot Lottery Solutions (Camelot LS) has reshaped Allwyn’s financial landscape. The group’s revenue nearly doubled in Q3, reaching €368.4 million, with a notable 10% increase in adjusted free cash flow to €336.6 million. Camelot LS, now rebranded as Allwyn North America, has significantly contributed to this growth.
I am pleased to report that Allwyn delivered another quarter of solid financial performance and strategic progress, notwithstanding headwinds from customer-friendly sports results (which impacted the sports betting sector in general) as well as less favorable jackpot cycles … We continued to deliver solid margins and free cash flow generation, with only a limited impact of inflation on our cost base, reflecting our favourable cost structure. Our largest cost categories were directly linked to revenue and our focus on cost and capital efficiency.
UK Leads the Way for Allwyn
The UK has emerged as Allwyn’s primary market, with Q3 revenue reaching €956.5 million, despite a 12% decrease compared to last year. Allwyn is set to take over the UK National Lottery from Camelot UK on 1 February 2024. In other regions, revenue in Greece and Cyprus fell by 4% to €503.4 million, while Italy saw an 8% increase to €554.0 million. The Austria segment showed a 2% rise to €379.9 million, although it faces challenges with the loss of a casino license in Germany.
Allwyn also reported growth in the Czech Republic, with a 6% increase in revenue to €123.1 million. The US-facing Allwyn LS Group business experienced a 12% rise in revenue, primarily due to the success of the Illinois Lottery.
A Hugely Successful 2023
Looking at the nine months leading up to 30 September, Allwyn’s total revenue reached €5.70 billion, marking a 98% increase from the previous year. Gross gaming revenue rose by 99% to €5.47 billion, and net revenue saw a 43% increase to €2.60 billion.
Robert Chvatal added that he is “very pleased” with the company’s performance and that he believes they will have a strong finish to the year and are well positioned for future growth.
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