Allwyn’s Q2 2024 Performance Boosted by European Operations
Allwyn International reported strong Q2 2024 results, with revenue rising 5% year-on-year to €2.15bn, driven by growth in its European subsidiaries. Despite challenges from its new UK National Lottery operations, the company continues to expand through strategic investments, including a 70% stake in Instant Win Gaming.
Steady Revenue Growth Across European Operations
Allwyn International, a global leader in lottery operations, has reported continued revenue growth, posting €2.15bn in Q2 2024, a 5% increase compared to the same period in 2023.
The company’s European subsidiaries, including OPAP (Greece), SAZKA (Czech Republic), and Casinos Austria, were key contributors, driving organic growth and maintaining net revenue at €941m, up from €906m in the previous year.
Impact of UK National Lottery on Financial Metrics
The company’s recent acquisition of the UK National Lottery licence, effective from 1 February 2024, has introduced complexities in comparing financial results with previous periods.
Allwyn’s management acknowledged that the varying business models between their existing operations and the newly acquired UK contract affect profit margins, making direct comparisons challenging. Despite these adjustments, Allwyn’s group revenue remains stable, although operating margins dipped by 6% to 36%, primarily due to the UK operations.
Adjusted EBITDA and Strategic Investments
Adjusted EBITDA fell 11% to €340m, reflecting the impact of the UK National Lottery transition. However, excluding the UK operations, the company’s EBITDA grew by 4% year-on-year, highlighting robust profitability across its non-UK assets.
In a strategic move to enhance its games development capabilities, Allwyn completed its acquisition of a 70% stake in Instant Win Gaming (IWG), a supplier of instant win games with 250 titles and a presence in 25 international lotteries.
The acquisition is part of Allwyn’s broader strategy to expand its global footprint and resources, with IWG co-founders Rhydian Fisher and Simon Bucknall continuing in their leadership roles.
CEO’s Perspective on Growth and Strategic Execution
Robert Chvátal, CEO of Allwyn, expressed satisfaction with the company’s performance, stating: “I am pleased to report another quarter of continued progress and solid financial performance, reflecting the continued execution of our growth strategies. Excluding the UK operations, adjusted EBITDA increased by 4%, driven by strong performance across our European investments.”
Chvátal also highlighted the successful completion of Allwyn’s investment in IWG, which is expected to expand the company’s capabilities in online instant win games, further supporting its global growth objectives.
