Allwyn Revenue to Reach New Milestone in First Quarter of UK Lottery Operations
Allwyn International is expecting Q1 revenue to exceed €2 billion as it prepares to release its first quarterly results since becoming operator of the UK’s National Lottery.
Allwyn announce revenue plans expected to reach €2 billion in first quarter of 2024.
LISTEN TO THIS ARTICLE:The company has published a trading update in which it indicated that gross gaming revenue (GGR) for the period ending 31 March 2024 might reach €2.05 billion. The lower estimate of €2 billion is still almost $500 million more than Q1 2023.
Allwyn completed the acquisition of Camelot, the UK National Lottery operator, in March 2023 and on 1 February 2024, it became the UK National Lottery licensee. This acquisition contributed to a 97.5% increase in GGR in 2023, totaling €7.87 billion.
Alongside the UK’s contribution in Q1 2024, the group also reported impressive GGR momentum across most markets, attributing this to its focus on driving organic growth.
In Austria, GGR showed year-on-year progress during the quarter, fueled by strong performance in iGaming. In the Czech Republic, GGR growth increased by a double-digit percentage year-on-year on a constant foreign exchange (FX) basis, driven by growth across all major products. However, FX was a headwind of 6pp, resulting in mid-single-digit percentage growth on a reported basis.
In the UK, GGR was flat year-on-year on a constant FX and comparable presentation basis, with Numerical Lotteries performing well.
Related: Allwyn Launches Operation Guardian for Safer Gambling
Marketing Costs Keep Earnings Down
Adjusted EBITDA is expected to be between €355 million and €365 million when preliminary unaudited financial results are released on 7 June. This represents a slight increase from the 2023 figure of €346.7 million.
Adjusted EBITDA growth was boosted by a rise in the contribution from equity method investees. However, this growth was partially offset by higher marketing costs for new product launches and increased personnel costs.
In the UK, the result shows a strong performance in January, the last month of the previous license. From 1 February, Allwyn saw substantially lower profitability due to a new profitability mechanism.
CAPEX was €45.0 million in Q1 2024, €20.5 million higher year-on-year. The increase was due to higher investment in the UK, supporting Allwyn’s plans to transform the UK National Lottery, while other segments’ CAPEX remained flat.
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Positive Words from Allwyn CEO
Robert Chvatal, Allwyn CEO, stated that the first quarter has provided Allwyn a basis for success this year.
2024 has started well, with trading broadly in line with our expectations. This reflects good operational and financial performance and our ongoing focus on the delivery of our growth strategies. Solid momentum in GGR growth continued in the first quarter. Allwyn successfully started the next 10-year license period of the UK National Lottery. We have delivered further progress in Adjusted EBITDA. Allwyn remains well positioned for 2024 and for the next chapters of its growth story.
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