Camelot acquisitions boost Allwyn’s third quarter revenue growth

Finance News

In Q1 2023, Allwyn completed the acquisitions of Camelot UK, the current operator of the UK National Lottery, and of Allwyn LS Group (formerly referred to as Camelot LS Group), the current operator of the Illinois Lottery under a private management agreement.

These acquisitions have a significant impact on consolidated metrics of the Group and comparability with previous periods. Differences between the business models of the recent acquisitions and existing operations also results in profit margins not being directly comparable.

On a pro forma LTM basis, Total Revenue would have been €8,337.7 million and Adjusted EBITDA would have been €1,483.8 million.

Robert Chvatal, Allwyn CEO, commented: “I am pleased to report that Allwyn delivered another quarter of solid financial performance and strategic progress, notwithstanding headwinds from customer-friendly sports results (which impacted the sports betting sector in general) as well as less favourable jackpot cycles.

Total Revenue increased by 98% year-on-year in Q3 2023, reflecting a steady performance in our existing geographies in addition to the significant contribution from the Camelot Acquisitions that we completed in the first quarter.

The steady performance in our existing geographies was underpinned by continued progress in digital, where we see the benefits of our ongoing focus on product development and the customer proposition. Alongside this, we continue to successfully roll out a number of important game innovations, including new launches in the exciting annuity category in Austria, the Czech Republic, and Greece and Cyprus. In doing so, we remain focused on our responsibilities to all our stakeholders, including our relentless focus on safe play. 

We continued to deliver solid margins and free cash flow generation, with only a limited impact of inflation on our cost base, reflecting our favourable cost structure, with our largest cost categories being directly linked to revenue, and our focus on cost and capital efficiency.

Reflecting the strong free cash flow generation of our business model, in our Greece and Cyprus segment OPAP announced a €150 million share buyback programme during the quarter. We do not plan to tender shares and therefore expect our economic interest in OPAP to increase marginally as the buyback is carried out, consistent with our inorganic growth strategy. In parallel, OPAP has announced that it will not be continuing its scrip dividend programme. We will therefore be receiving all future dividends from OPAP in cash.

Overall, despite the sector headwinds in the quarter, I am very pleased with Allwyn’s continued progress and believe we are well placed to end 2023 successfully, and for the next chapters of our growth story.”