Allwyn International has demonstrated its ability to successfully execute strategic directives to further transform its global lottery operations and products.
The lottery conglomerate’s unaudited Q2 2024 results showed revenues increased to €2.15 billion ($2.32 billion), up 5% from €2 billion ($2.16 billion) in the same period in 2023.
The group’s financial performance continues to strengthen as Allwyn UK commenced implementation of the National Lottery licence on 1 February 2024.
The UK contract continues to impact Allwyn International’s consolidated performance and comparability to the prior year.
As noted by management: “Differences between the business models of the acquired businesses and existing operations, and between the previous and current licenses for the UK National Lottery, also result in profit margins not being directly comparable between periods.”
Allwyn International continued to deliver net revenue growth, reaching €941 million ($1.02 billion) (Q2 2023: €906 million ($980 million)), reflecting continued “organic growth” across its European subsidiaries OPAP (Greece), SAZKA (Czech Republic) and Casinos Austria.
Including the National Lottery adjustments, the group accounts saw operating margins fall 6% to 36% (2023: 42%) as adjusted EBITDA in Q2 fell 11% to €340 million ($367.2 million). Allwyn said EBITDA excluding the UK impact was +4% for the period.
Subsequent corporate events led to the completion of Allwyn’s investment in Instant Win Gaming (IWG), giving Allwyn a 70% stake in the company, which has developed 250 instant win games and is a direct supplier for 25 international lotteries.
In building its game development capabilities, Allwyn will retain Rhydian Fisher and Simon Bucknall, IWG’s co-founders, in their current roles as CEO and COO respectively following the completion of the acquisition.
Robert Chvátal, Allwyn CEO, commented: “I am pleased to report another quarter of continued progress and solid financial performance, reflecting the continued execution of our growth strategies.
We delivered solid profitability growth outside the United Kingdom and once again benefited from a strong performance by our equity method investees. Excluding the United Kingdom, as well as Allwyn LS Group, which was acquired during the first half of 2023, adjusted EBITDA increased 4% year-on-year.”
Following the quarter, we are pleased to announce the completion of our planned investment in 70% of Instant Win Gaming, a leading provider of online instant win games, which will allow us to expand our presence and capabilities.”
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