In the first quarter of 2024, Allwyn’s acquisition of the UK National Lottery significantly bolstered its financial performance, leading to a remarkable 28.1% year-on-year rise in revenue. The company’s total revenue for the three months ending 31 March reached €2.11bn (£1.80bn/$2.30bn), a notable increase from the €1.65bn reported in the same period the previous year. This performance aligns closely with the company’s earlier forecasts.
The gross gaming revenue from Allwyn’s gaming activities surged by 27.1%, hitting €2.02bn, while net revenue for the quarter grew by 16.0% to €940.9m. CEO Robert Chvatal attributed this impressive growth primarily to the company’s takeover of the National Lottery, which officially took place on 1 February. This transition saw Allwyn replace Camelot, the long-standing operator of the National Lottery since its inception in 1994.
Allwyn’s new responsibilities encompass the entire spectrum of National Lottery operations and products, including both online and retail sales for major games such as Lotto, Set For Life, Thunderball, and Hotpicks, as well as scratchcards and the UK participation in the Europe-wide EuroMillions. Chvatal hailed the transition as a pivotal moment in Allwyn’s history, commending the early success of the company’s stewardship of the National Lottery.
“This represented the fruition of many years of dedication by a team from across our geographies,” Chvatal remarked. “We’re excited to have already started work on transforming The UK National Lottery for the benefit of all stakeholders.”
In addition to the operational takeover, Chvatal highlighted the positive impact of recent mergers and acquisitions (M&A) on the company’s performance in Q1. In February 2023, Allwyn completed the acquisition of Camelot UK, the former National Lottery operator, and earlier in the year, it acquired Camelot Lottery Solutions (Camelot LS), now rebranded as Allwyn LS Group for its US-facing operations. These strategic acquisitions provided Allwyn with valuable insights and preparation for managing the National Lottery.
Without the contributions from UK operations and the Allwyn LS acquisition, Allwyn’s Q1 revenue would have only experienced a modest 3.0% increase. Additionally, Q1 saw Allwyn enhance its portfolio by agreeing to purchase a 70% stake in Instant Win Gaming, focusing on global expansion and solidifying its market reach.
“Through our inorganic growth strategy, we continue to expand our footprint and capabilities,” Chvatal stated.
Beyond acquisitions, Chvatal underscored other factors contributing to growth in Q1, including the expansion of the company’s digital business across multiple markets. Noteworthy achievements included ongoing product development, the launch of Eurojackpot in Greece, and advancements in customer loyalty schemes and the digitalisation of retail operations. These initiatives, coupled with the UK developments and the Allwyn LS acquisition, significantly boosted both revenue and adjusted EBITDA, which rose by 141.6% to €41.8m, with a margin of 38.0%.
Furthermore, Allwyn fortified its financial standing by signing €500.0m of accordion facilities under its senior facilities agreement. Post-quarter activities included the syndication of a $450.0m term loan B facility.
“This was our debut term loan B transaction, further diversifying our access to capital,” Chvatal noted. “I am very pleased that both transactions were well supported by existing and new lenders.”
Overall, Chvatal expressed satisfaction with the year’s strong start and confidence in Allwyn’s position for continued growth throughout 2024 and beyond.
