Allwyn Entertainment, a Czech lottery operator, announced a 11% increase in gross gaming revenues (GGR), to EUR958.6m in Q3, after the company acquired Camelot Group.
The adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) for the company increased at a similar 10% rate to EUR319.9m over the same three-month period. The growth in revenue and EBITDA was driven by all organic factors. “This shows once more the strength of the demand for our product and our business model,” commented Allwyn CEO Robert Chvatal.
Allwyn Austrian Casino’s growth was a result of strong performance in its online business, and the continued strength within the Allwyn Austrian segment.
Online growth
Allwyn made progress in Q3 developing their online offering. The business highlighted in particular its success in the Czech Republic.
The third quarter of 2013 was another record-breaking quarter in terms of online sales. Our GGR online increased by 7% on an annual basis and is now approaching 50%.
Allwyn’s acquisition of Camelot, which was announced previously, will play a part in the future growth prospects. Camelot lost its license renewal bid in February when the Gambling Commission declared that Allwyn had been the “preferred” applicant. Camelot was UK National Lottery’s operator since the lottery was founded in 1994.
Chvatal said that the common ownership of operators for the third and the fourth licenses would help to ensure the success of the National Lottery in both 2023 as well as the following decade. Allwyn has committed itself to improving the National Lottery, increasing donations for charitable causes and enhancing player protection. The deal helps Allwyn achieve its vision of the National Lottery and strengthens the process for transition.
Allwyn will also benefit from its increased stake in the Greek gaming company OPAP. The company’s shareholding increased by 1.05% in Q3 to 49.8%, through both market purchases and participating in OPAP’s scrip-dividend programme.
Outlook
Allwyn was optimistic about their future prospects when assessing macro-risks that could threaten the position of the company in the near future. According to the company, neither Covid-19 nor ongoing conflict in Ukraine have had a material impact on its business.
The company has also seen a limited impact from rising energy and inflation costs. This is due to the fact that energy costs and staffing are only a tiny part of Allwyn’s total cost base.
Allwyn acknowledged that the macroeconomic and political risk mentioned above could affect consumer sentiment. However, it said it was confident that the company would be mostly insulated from these risks, pointing out historical evidence of its performance during times of stress.
The company said that the current trends were in line with previous periods when consumer sentiment was weaker, such as the Covid-19 outbreak, the Greek Crisis, and the Global Financial Crisis, where demand for products like ours remained strong, particularly in comparison to other sectors.
Financing
Allwyn has announced EUR1.6bn of new financing this month from an international bank syndicate. This transaction was backed by both existing and new lenders. It will help to pay off previous debts, launch the UK National Lottery as well facilitate acquisitions.
