Allwyn posts 98% YoY total revenue increase in Q3 thanks to Camelot additions
Lottery giant’s revenue lands at €2bn as Camelot acquisitions have positive impact on business despite 12% downturn in UK revenue
Allwyn International has posted a 98% year-on-year (YoY) total revenue increase in Q3 following the acquisitions of Camelot and Camelot Lottery Services earlier this year.
Q1’s addition of the companies has continued to drive growth for the firm, as the lottery giant gears up to take over the fourth National Lottery licence in the UK from February.
Total revenue increased from €1.01bn to €2bn YoY thanks to the addition of the pair, but when excluding the Camelot businesses, consolidated total revenue in Q3 fell 1% to €1bn.
Gross gaming revenue (GGR) also rose 98% to €1.9bn in 2023 from €968m over the same period last year.
Net revenue saw a jump of 38% for the quarter, from €642m to €883m, while operating EBIDTA fell slightly to €310m from €311m. Cash flow rose 10% YoY to €337m from €306m.
Geographically, Allwyn saw a slight increase in total revenue of 2% in Austria, from €374m to €380m, while GGR saw the same percentage rise in Q3, with figures rising to €366m in Q3 2023 from €359m a year prior.
There was a slightly larger total revenue increase YoY in the Czech Republic of 6%, while Greece and Cyprus saw a 4% decrease in total revenue over the quarter.
The UK saw a 12% decrease in total revenue, which was put down to “the weaker performance of numerical lotteries, impacted by shorter jackpot cycles in EuroMillions as well as a record rollover in the prior year period”.
Adjusted EBITDA from the region slipped 19% to €44.m during the reporting period, with costs arising from the transition biting.
Allwyn is currently managing the final months of the third National Lottery licence managed by Camelot following the acquisition of the business.
For the nine months ending September 2023, total revenue stood at €5.7bn, a 98% increase from €2.9bn.
Excluding the two Camelot acquisitions, Allwyn International posted a 7% total revenue increase YoY of €3.1bn from €2.9bn.
Robert Chvátal, Allwyn CEO, commented on the firm’s continued growth during the quarter.
Chvátal said: “The steady performance in our existing geographies was underpinned by continued progress in digital, where we see the benefits of our ongoing focus on product development and the customer proposition.
“Alongside this, we continue to successfully roll out a number of important game innovations, including new launches in the exciting annuity category in Austria, the Czech Republic and Greece and Cyprus.
“In doing so, we remain focused on our responsibilities to all our stakeholders, including our relentless focus on safe play.
“We continued to deliver solid margins and free cash flow generation, with only a limited impact of inflation on our cost base, reflecting our favourable cost structure, with our largest cost categories being directly linked to revenue, and our focus on cost and capital efficiency,” he added.