Lottery giant Allwyn, formerly known as Sazka, has reported signficant growth with its announcement of its financial results for Q2 2023. Analysts declared it was a remarkable performance and this is an overview of the key highlights.
Acquisition-Driven Growth
Allwyn’s financial report for Q2 2023 showcases impressive figures, with Gross Gaming Revenue (GGR) reaching €1.96 billion, marking a substantial 115.3 percent year-on-year increase. This substantial growth can be largely attributed to Allwyn’s strategic acquisition of Camelot UK and Camelot LS in February 2023, encompassing the UK’s National Lottery operator and the Illinois State Lottery operator.
Excluding the impact of the acquired businesses, Allwyn still achieved significant growth in its like-for-like GGR, which grew by 7.6 percent year-on-year, totaling €979.8 million. This performance demonstrates the company’s ability to drive revenue organically.
Regional Breakdown
Breaking down the GGR figures further, Camelot’s operations in the UK accounted for approximately half of the €1.96 billion, totaling €980.3 million, representing a moderate 1.2 percent year-on-year increase. Meanwhile, Allwyn’s existing operating regions also displayed commendable growth. Greece and Cyprus generated €498.1 million in GGR, reflecting a substantial 12.6% year-on-year upswing. Austria contributed an additional €360.3 million, up 1 percent, while the Czech Republic saw a 9 percent year-on-year increase, bringing in €121.4 million.
Beyond GGR Metrics
It’s worth noting that Allwyn LS Group (formerly known as Camelot LS), responsible for the Illinois State Lottery, generated €47.1 million in total revenue during the quarter, despite a 3.9 percent year-on-year reduction. However, it is mportant to clarify that this revenue is derived from private management services and is not included in Allwyn’s GGR reporting.
Similarly, operations in Italy contributed an extra €116.5 million in net revenue, reflecting a modest 3.4 percent increase. In this market, Allwyn holds a 32.5 percent stake in the local lottery operator, LottoItalia.
Net revenue excluding Camelot acquisition year-on-year 2020-2023 (Source: SiGMA)
Impressive Adjusted EBITDA
Overall, Allwyn declared an adjusted EBITDA of €381 million for the quarter, marking a substantial 34.6 percent year-on-year growth.
Allwyn CEO Robert Chvatal (pictured above), expressed his satisfaction with the company’s performance, attributing it to their robust digital growth, innovation, and the resilience of consumer demand. Chvatal also emphasized their cost efficiency and ability to manage inflation’s impact on their cost base.
In conclusion, Allwyn’s Q2 2023 financial results highlight the company’s stellar growth, driven by acquisitions, organic expansion and a focus on operational efficiency, positioning it as a formidable force in the lottery industry.
Announcement of new leadership team for National Lottery
Allwyn, the new operator of the UK National Lottery, has appointed a new UK leadership team. for the National Lottery. Andria Vidler will become the new CEO, Alan Artz will be the CFO, and Gaby Heppner-Logan will be the Chief Assurance and Participant Protection Officer. The other members of the team are Lucy Buckley (Chief Commercial Officer), Martin Novak (Interim Chief Data Officer), Alan Artz (CFO), Sam Sheriff (Chief People Officer), Mark Smith (Chief Technology Officer), and Alastair Ruxton (Chief Strategy and Corporate Affairs Officer). The current Co-CEOs, Neil Brocklehurst and Clare Swindell, will depart after helping the new team get settled in. Allwyn will take over the UK National Lottery in February 2024.
Robert Chvàtal added: “I’d like to express my huge thanks to Clare, Neil and all the Camelot leadership team for their sterling work over many years supporting The National Lottery.?The National Lottery makes a huge contribution to communities across the UK through the money it generates for good causes.? They have a great deal to be proud of.? I wish them all the very best for the future.”
