Allwyn International has released its preliminary unaudited financial results for the first quarter of 2024, showcasing a remarkable 28% year-on-year increase in total revenue, reaching an impressive €2.11 billion ($2.3 billion). This significant growth reflects the company’s strategic expansion and operational excellence.
Allwyn International Reports Robust Q1 2024 Financial Results
Strong Performance Driven by UK and Allwyn LS Group Contributions
The substantial revenue increase was primarily driven by contributions from the United Kingdom segment, consolidated from February 2023, and the Allwyn LS Group, consolidated from March 2023. These strategic acquisitions have significantly bolstered Allwyn’s financial performance.
Excluding Acquisitions: Organic Growth Analysis
Even without considering these acquisitions, Allwyn still achieved a commendable 3% year-on-year growth in total revenue. This indicates a solid organic growth trajectory, underscoring the company’s robust market position and effective business strategies.
Gaming Revenue and Net Revenue Surge
Allwyn’s revenue from gaming activities (GGR) surged by 27% to €2.02 billion, demonstrating strong demand and engagement in the gaming sector. Furthermore, net revenue rose by 16% to €940.9 million, reflecting the company’s ability to convert gross revenue into substantial net earnings.
Adjusted EBITDA and Margin Analysis
Adjusted EBITDA grew by 3% to €357.8 million, indicating healthy profitability. However, the adjusted EBITDA margin decreased by 4.7 percentage points to 38.0%. This slight margin compression can be attributed to increased operational costs and investment activities.
Significant Rise in Capital Expenditure (CAPEX)
Capital expenditure (CAPEX) witnessed an impressive 84% year-on-year increase, totaling €45.0 million. This surge was mainly driven by increased investments in the United Kingdom to support Allwyn’s ambitious transformation plans for the UK National Lottery.
Strategic Acquisitions and Milestones
In Q1 2023, Allwyn completed the acquisition of Camelot UK, the operator of the UK National Lottery until 31 January 2024, and the Allwyn LS Group, the operator of the Illinois Lottery. These acquisitions have significantly impacted the company’s consolidated metrics and comparability with previous periods.
CEO Commentary on Q1 2024 Performance
Robert Chvatal, CEO of Allwyn, expressed satisfaction with the company’s performance: “I am pleased to report that 2024 has started well, with solid operational and financial performance in the first quarter, supported by our ongoing focus on our growth strategies. Q1 also included a key milestone in Allwyn’s history, with our successful start of operation of the UK National Lottery under a new 10-year licence.”
Pursuing Inorganic Growth Strategies
In addition to organic growth, Allwyn has been actively pursuing inorganic growth strategies. The company announced plans to acquire a 70% ownership interest in Instant Win Gaming (IWG), a supplier of online instant games, to enhance its content offerings. This transaction is expected to close in the second half of 2024.
Financial Strength and Debt Management
Financially, Allwyn demonstrated its strength by raising €500 million through a bank facility in March 2024 and syndicating a $450 million Term Loan B facility. As of 31 March 2024, the company’s net debt to adjusted EBITDA ratio stood at 2.1x, reflecting prudent debt management.
Corporate Social Responsibility Initiatives
Allwyn has continued its commitment to corporate social responsibility. The company partnered with the Peace Race for the second consecutive year, supporting the cycling tour aimed at promoting peaceful cooperation within Central Europe. This initiative highlights Allwyn’s dedication to positive community impact and social engagement.
Conclusion: Allwyn International
Allwyn International’s preliminary unaudited financial results for Q1 2024 highlight a period of robust growth and strategic achievements. With a 28% increase in total revenue, significant contributions from recent acquisitions, and a focused approach to both organic and inorganic growth, Allwyn is well-positioned for continued success. The company’s investment in the UK National Lottery and strategic acquisition plans underscore its commitment to expanding its market footprint and enhancing its service offerings.
As Allwyn progresses through 2024, the focus remains on sustaining growth, enhancing operational efficiency, and driving innovation in the gaming industry. The company’s financial strength, strategic acquisitions, and commitment to corporate social responsibility will undoubtedly contribute to its long-term success and market leadership.
FAQs About Allwyn International’s Q1 2024 Financial Results
1. What were Allwyn International’s total revenues for Q1 2024?
Allwyn International reported total revenues of €2.11 billion ($2.3 billion) for the first quarter of 2024, marking a 28% year-on-year increase.
2. What were the main drivers of revenue growth for Allwyn in Q1 2024?
The primary drivers of revenue growth were contributions from the United Kingdom segment, consolidated from February 2023, and the Allwyn LS Group, consolidated from March 2023.
3. How did Allwyn perform excluding the contributions from recent acquisitions?
Excluding the contributions from the UK segment and Allwyn LS Group, the company still saw a 3% year-on-year growth in total revenue.
4. How much did revenue from gaming activities increase in Q1 2024?
Revenue from gaming activities (GGR) increased by 27% to €2.02 billion.
5. What was the net revenue for Allwyn in Q1 2024?
Net revenue rose by 16% to €940.9 million.
6. What was Allwyn’s adjusted EBITDA and margin for Q1 2024?
Adjusted EBITDA grew by 3% to €357.8 million, while the adjusted EBITDA margin decreased by 4.7 percentage points to 38.0%.
7. What was the capital expenditure (CAPEX) for Allwyn in Q1 2024?
Capital expenditure (CAPEX) totaled €45.0 million, representing an 84% year-on-year increase, mainly due to investments in the UK National Lottery transformation plans.
8. What acquisitions did Allwyn complete in Q1 2023?
In Q1 2023, Allwyn completed the acquisition of Camelot UK, the operator of the UK National Lottery until 31 January 2024, and the Allwyn LS Group, the operator of the Illinois Lottery.
9. What strategic growth plans does Allwyn have for the future?
Allwyn plans to acquire a 70% ownership interest in Instant Win Gaming (IWG), a supplier of online instant games, to enhance its content offerings. This transaction is expected to close in the second half of 2024.
10. How has Allwyn strengthened its financial position recently?
In March 2024, Allwyn raised €500 million through a bank facility and syndicated a $450 million Term Loan B facility. As of 31 March 2024, the company’s net debt to adjusted EBITDA ratio stood at 2.1x.
11. What corporate social responsibility initiatives has Allwyn undertaken?
Allwyn partnered with the Peace Race for the second consecutive year, supporting a cycling tour aimed at promoting peaceful cooperation within Central Europe.
12. What did CEO Robert Chvatal say about the Q1 2024 performance?
CEO Robert Chvatal expressed satisfaction with the company’s solid operational and financial performance, noting the successful start of operating the UK National Lottery under a new 10-year license.
13. How does the performance in Q1 2024 impact Allwyn’s future outlook?
The strong performance in Q1 2024, coupled with strategic acquisitions and investment plans, positions Allwyn well for continued growth and market leadership in the gaming industry.
