Allwyn posts 89% leap in NGR as it awaits UK National Lottery High Court decision
Czech firm records increases across EBITDA, profit and GGR as easing of Covid-19 restrictions boosts performance
Allwyn Entertainment has recorded an 89% rise in net gaming revenue (NGR) year-on-year (YoY) for Q1 2022.
The international lottery giant generated €534.4m (£463.6m) in NGR for the first three months of the year, compared to the return of €283m in Q1 2021.
The increase in revenue was driven by the repealing of Covid-19 related restrictions on the company’s retail operations.
Allwyn pointed to relaxations of regulations in Greece, Cyprus and Austria, along with organic growth, as key drivers for its Q1 2022 growth.
Elsewhere, gross gaming revenue (GGR) increased by 65% YoY from €526.3m to €869.3m in Q1 2022.
Breaking down GGR by geographical region, the Greece and Cyprus segment of the business continued to operate well, with GGR increasing by 162% to €457.2m in the region.
Austria was the second-largest region in terms of GGR, returning €309.3m to the parent company.
GGR from the Czech Republic increased slightly by 7% to €102.8m, while Italy was the only region to post a GGR decline, slipping 14% to €115.5m.
Allwyn also recorded an adjusted EBITDA of €268.8m, representing a 86% YoY increase from Q1 2021’s €144.4m.
The adjusted EBITDA margin remained constant, dipping slightly to 50% in Q1 2022 compared to 51% in Q1 2021.
In terms of post-tax profit, Allwyn achieved a 287% YoY rise from €33.3m in Q1 2021 to €128.9m.
Touching on the ongoing legal debate surrounding the fourth UK National Lottery, Allwyn said it was waiting on the court’s judgment ahead of its period of transition to becoming the new licence holder.
Robert Chvatal, Allwyn CEO, said he was happy with the group’s performance in Q1 but noted potential impact caused by rising inflation across markets.
He said: “I am pleased to report that Allwyn International has started the year strong and delivered several important strategic initiatives and another set of solid results.
“The first quarter of 2022 was an exciting time for us from a strategic point of view. We have executed several initiatives that set us up well for future growth.
“We note that general consumer demand has weakened in the last few months due to persisting inflationary pressures. However, 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.
“Overall, I am pleased with Allwyn International’s financial and strategic performance in Q1 2022 and I look forward with confidence and excitement to the next quarters,” he added.
Earlier this month, the company’s planned public listing via a reverse merger with a SPAC was pushed back from Q2 to Q3 2022.