Allwyn nets solid Q1 results but demands better UK performance 

Q1
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Allwyn International has promised to improve the financial performance of its Allwyn UK subsidiary, having officially taken on operating duties of the UK National Lottery.

Publishing a Q1 trading update, Allwyn declared that its global lottery brands portfolio had achieved a combined ‘unaudited revenues’ of €2bn to €2.05bn primarily attributed to the ‘full contribution of its new UK segment’.

The figure is also the first time Allwyn has achieved €2bn revenue in a quarter (Q1 2023: €1.59bn).

Taking on costs and investments related to Allwyn UK becoming the chief operator of the National Lottery, group Q1 capital expenditures doubled to €45m (2023: €24.5m).

Q1 trading was ‘deemed solid’ as Allwyn International maintained Q1 EBITDA in the expected range (unaudited) of €355m to €365m (2023: €346m).

Per market, UK GGR remained flat year-on-year on a constant FX basis, despite numerical lotteries outperforming expectations.

Flat UK results were matched against the performance subsidiaries in Austria and the Czech Republic, which maintained GGR growth despite facing significant FX impacts.

Period trading concluded with Allwyn International securing terms on a $450m new debt note arrangement, which will be used to pay off €400m in debt, cover related costs and for general business purposes, with funds likely to be converted to a floating € rate.

Ahead of H2 trading, Allwyn announced that it had acquired a 70 per cent majority stake in Instant Win Gaming, expected to close in the interim period.

“2024 has started well, with trading broadly in line with our expectations at the start of the year, reflecting good operational and financial performance and our ongoing focus on the delivery of our growth strategies,” commented Robert Chvatal, CEO of Allwyn.

“Solid momentum in GGR growth continued in the first quarter, during which Allwyn successfully started the next 10-year licence period of the UK National Lottery, while we have delivered further progress in Adjusted EBITDA. Allwyn remains well positioned for 2024 and for the next chapters of its growth story.”