Allwyn On a Roll, Posts Impressive Q1 Results
Fresh from its unexpected triumph of being designated the “Preferred Candidate” to run the UK’s cash-cow national lottery, newly-boosted Allwyn International has posted impressive Gross Gaming Revenue (GGR) of €869.3 million (£743.2m/US$912.4m) for its Q1 results, up 65 per cent year-on-year.
And this, claimed CEO Robert Chvatal, was despite “weakened” consumer demand.
More than half of Allwyn’s GGR came from Greece and Cyprus, where the company formerly known as Sazka owns a near-50 per cent stake in lottery operator OPAP.
Revenue from Allwyn’s home market of the Czech Republic registered €102.8 million (£87.9m/US$107.9m), up seven per cent on Q1 2021; while Allwyn’s verticals in Austria delivered €309.3 million (£264.4m/US$324.6m), up 52 per cent.
Noting that its principal markets were now out of the Covid-19 minefield, CEO Chvatal said: “[Although] general consumer demand has weakened in the last few months, due to persisting inflationary pressures, our business has seen only a limited impact so far due to the low price point of our products and low average spend, as well as our large number of regular players.”
Revenue from sports betting was up 76 per cent to €162.3 million (£138.8m/US$170.3m), while iGaming revenue was up by a more modest six per cent to €112.2 million (£95.9m/US$117.8m).
After interest, tax, depreciation and amortisation, Allwyn registered a profit of €128.9 million (£110.2m/US$135.3m) in the quarter — four times the profit recorded in Covid-hammered Q1 2021.
Allwyn has been on something of a roll this year: rebranding, winning the race to run the UK Lotto from 2024 and announcing a merger with Special Purpose Acquisition Company Cohn Robbins Holdings Corp. that will allow it to list on the New York Stock Exchange and take the company truly global.
Nevertheless, there remains one cloud on the Allwyn horizon.
The outfit is hoping that a late legal challenge from current UK lottery licensee Camelot–set to be determined in court this October–doesn’t derail its plans for world domination.