Allwyn has declared a “strong” first three months of the trading year despite “weaker general consumer sentiment”.
Publishing its financial report for the period ending March 31, the UK Gambling Commission’s (UKGC) preferred applicant for the fourth National Lottery licence increased its consolidated gross gaming revenue (GGR) by 65% year-on-year (€869.3m).
According to Allwyn, this reflects a “more normalised operational environment” following the reopening of its physical retail business.
Meanwhile, there was a consolidated adjusted EBITDA margin of 50% and consolidated adjusted EBITDA of €268.8m, an increase of 86% YoY.
CEO Robert Chvatal commented: “Allwyn 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.
“Our financial performance in Q1 2022 continued to be strong.”
The Czech-based company also recorded strong growth in online sales as its digital channel contributed 43% of its GGR in the Czech Republic, compared with 36% in Q1 2021.
This was despite COVID-19 related restrictions which impacted sales in some markets, though to a “significantly” lesser extent than in previous periods.
The physical retail channel in Greece and Cyprus, casinos in the Austria segment and certain categories of points of sales in Italy proved to be the most affected by restrictions in Q1.
Chvatal added: “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.”
Allwyn’s first financial report of the year comes at a time of change and development for the company.
In addition to being awarded the fourth UK National Lottery licence, a decision which has sparked a legal challenge in the High Court by current incumbents Camelot, Allwyn has been working on a group-wide rebrand.