Strong organic growth fuels record quarter for Allwyn as Q3 revenue leaps 11%
Lottery giant yet again achieves record online sales in the Czech Republic, contributing to a 10% rise in adjusted EBITDA for the group
Allwyn has posted a 11% year-on-year (YoY) increase in gross gaming revenue (GGR) for Q3 2022, with the group citing strong organic growth as a key driver for the growth.
The Czech lottery giant recorded GGR of €958.6m for the reporting period, up from €867.4m in Q3 2022. This figure represents Allwyn’s highest ever quarterly total for GGR.
Allwyn noted strong online channel growth and the improvement in the casino business in Austria as primary drivers during the quarter.
Meanwhile, adjusted EBITDA rose 10% YoY from €290.4m to €319.9m with a corresponding margin of 54%, down from 55% in Q2 2021.
Breaking down the firm’s geographic spread, Greece and Cyprus continued to represent the largest segment of the business, delivering GGR of €498.7m in Q3, up from €461.6m in Q3 2021.
Austria was the second largest region for the group after GGR jumped 13% YoY from €309.1m to €349.1m.
The Czech Republic recorded the largest YoY increase in terms of GGR, rising 15% from €96.7m to €110.8m. The Italian segment fell 9% to €511.7m.
Allwyn did confirm it had seen some slight strain from both the ongoing war in Ukraine and inflationary pressures across Europe, but this was quite limited due to the low price point of products and the low average spend per customer.
Following the end of Q3, Allwyn confirmed it had agreed a £100m deal to acquire Camelot UK from the Ontario Teachers’ Pension Plan to ease its transition to becoming the fourth UK National Lottery licence holder.
The group also secured a €1.6bn loan from a syndicate of international banks to support its growth.
Speaking on the group’s Q3 performance, Allwyn CEO Robert Chvátal touched on the future for the UK National Lottery and his online aspirations.
Chvátal said: “Common ownership of the operators of both the third and fourth licences will help ensure the successful delivery of the National Lottery both in 2023 and over the next decade.
“Allwyn is committed to making the National Lottery better, raising more for good causes and improving player protection. This deal strengthens the transition process and helps support Allwyn in achieving its vision for the National Lottery.
“We have also continued to make good progress on our key organic growth initiatives, in particular in the online channel. For example, the third quarter was another record quarter for online sales in the Czech Republic, with the proportion of our GGR from online increasing by 7% YoY and approaching 50% of the total,” he added.