Allwyn That Ends Well, New UK Lotto Runner Hits The Q2 Jackpot
New UK Lotto Runner Allwyn has hit the jackpot with a year-on-year plus-100 percent increase in revenue to €2.05 billion (£1.75bn) in its second quarter, ending June 30.
The massive 114.7 percent doubling was powered by its clean-sweep acquisition of Camelot UK Lotteries and Camelot subsidiary Camelot Lottery Solutions (CLS).
Amid some controversy, Allwyn–a pillar of Czech billionaire Karel Komárek’s KKCG Group–won the fiercely-competitive fourth National Lottery licence award from perennial runners Camelot last year.
Stung by its loss, Camelot–improbably owned by Canada’s Ontario Teachers’ Pension Fund–threatened a long and debilitating legal action to stymie the changeover, having run the UK cash-cow lottery since its inception in 1994.
Allwyn, headed by Chief Executive Robert Chvátal, dealt with the potentially messy legal issue by the simple “gordian knot” solution of buying-up Camelot UK and its USA-facing subsidiary CLS.
Moves
The move has hit the proverbial jackpot.
In Q2 almost a half of Allwyn’s GGR, €980.3 million (£839.36m), came from running the UK national lottery. Italy revenue was €557 million (£476.92m) and Greece and Cyprus revenue totalled €521 million (£446.09m).
“I am pleased to report that Allwyn delivered another quarter of strong growth, profitability and strategic progress,” said CEO Chvátal.
“We delivered organic revenue growth across markets. And also saw a further step up in profit and free cash flow generation owing to this being the first full quarter of ownership of our recent acquisitions.”
Allwyn’s operating EBITDA rose nearly 30 percent to €357.2 million (£305.84m), while Adjusted EBITDA for Q2 was 34.6 percent higher, year-on-year, at €381 million (£326.22m).
H1 revenue also almost doubled, year-on-year, from €1.87 billion (£1.6bn) to €3.69 billion (£3.15bn).
UK revenue in the half was €2 billion (£1.71bn). Italy came in at €1.14 billion (£976.1m). And revenue in Greece and Cyprus hit €1.07 billion (£916.1m).
Added Chvátal: “Overall, I am very pleased with Allwyn’s continued progress. I believe we are well placed for the rest of 2023 and the next chapters of our growth story.”
Allwyn will formally assume running of the UK Lottery in February next year.
