Home NewsSports Betting Allwyn’s revenue increases by 114.7% in Q2 due to the acquisition of Camelot

Allwyn’s revenue increases by 114.7% in Q2 due to the acquisition of Camelot

133 views 4 minutes read

Allwyn announced a 114.7% increase year-over-year in revenues to EUR2,05bn ($2,20bn/£1,75bn). This was driven by the acquisitions of Camelot UK Lotteries (Camelot LS) and Camelot Lottery Solutions.

The agreement was first signed in October 2022. This agreement includes all Camelot UK’s operations including the current right to run the National Lottery up until February 2024. Allwyn, which was granted the fourth National Lottery license, will assume control from this date.

Allwyn had already signed an agreement in January to purchase US-facing Camelot LS, now known as Allwyn LS Group. The Ontario Teachers’ Pension Plan Board (OTPP) purchased both.

Allwyn’s Q2 performance was significantly affected by the addition of these businesses, its first quarter after the completion of the acquisitions. The revenue was up significantly year-on-year and adjusted EBITDA also increased.

Robert Chvatal, Allwyn’s chief executive officer, praised his group for its performance and spoke of the potential growth that the acquired companies could bring.

Chvatal stated, “I’m pleased to announce that Allwyn has delivered a quarter of solid growth, profitability, and strategic progress.” We delivered organic growth in all markets, and saw an increase in profits and cash flows due to the fact that this was our first quarter as owners of recent acquisitions.

Chvatal spoke also of the ongoing digital growth within Allwyn’s company, stating that this would help drive growth on a long-term basis.

He said: “I’m happy to announce that our good performance across our geographies has been driven by our strong digital growth, which we have maintained our momentum for product innovation and development.”

Alongside this, “we continue to evolve and digitalise the customers proposition in physical retail.” We saw a continued resilience in the demand for our product during this quarter, despite a consumer environment that is still under stress.

Allwyn’s Impact of Camelot Acquisitions is Clear

The group revenue reached EUR2.00bn in the quarter ending 30th June for the very first time. EUR1,96bn of this total was gross gaming revenues, an increase of 115.3% over last year.

Without the effect of the Camelot purchases, the total revenue for the year would have been EUR1.02bn. It was 7.1% higher than the EUR953.1m revenue of last year. EUR979.8m was gross gaming revenues.

The UK is the leading market with revenues approaching EUR1.00billion

Allwyn’s Q2 performance was dominated by the UK. The region’s revenue was EUR980.3m. This is all attributed to gaming revenues related to National Lottery.

The Italian revenue was EUR557.0m while Greece and Cyprus revenues were EUR521.0m. This is due to a solid digital performance.

Austria’s revenue was EUR373.5m. Allwyn noted a strong performance from video lotteries, casinos, instant lottery games and igaming. The EuroMillions jackpot cycle was shorter, which affected the numerical lotteries.

Allwyn also reported successful operations in the Czech Republic where its instant lottery and igaming products were used. Allwyn LS Group also contributed EUR47.1m to the Illinois state lottery.

Adjusted EBITDA rises 34.6%

Allwyn didn’t publish the full financial breakdown for the third quarter but did provide details about EBITDA.

The operating EBITDA increased by 29.3%, to EUR357.2m. Adjusted EBITDA was up 34.6% at EUR381.0m.

This group reported a free cash flow adjusted of EUR362.8m, an increase of 31.5%.

The first half of the story is similar.

In the six-month period ending 30th June, revenues almost doubled from EUR1.87bn EUR3.69bn. Without the impact of acquisitions, group revenues grew 11.8% to EUR2.09bn.

The UK’s revenue for H1 was EUR2.00bn. Italy had a revenue of EUR1.14bn. Greece and Cyprus generated EUR1.07bn. Austria’s revenue was EUR761.8m. The Czech Republic had EUR251.6m. Allwyn LS Group brought in EUR93.6m.

The operating EBITDA was up 26.3% at EUR686.6m, and the adjusted EBITDA grew by 31.6% from EUR727.7m. The adjusted free cash flow for the first half increased by 30.0%, to EUR685.0m.

Chvatal stated that “we continued to generate strong margins, and solid cash flow, with only limited inflation impact on our cost basis, reflecting our favorable cost structure. Our largest cost categories are directly related to our revenue, and we focus on capital and cost efficiency.”

Overall, I’m very happy with Allwyn’s progress. “I believe that we will be well-positioned for 2023, and our next growth chapters.”

You may also like

About Us

On iGamingWorld, we provide in-depth analysis, the latest news and opinions from famous people of the gaming industry.

Featured Posts