Allwyn has reported its highest-ever quarterly gross gaming revenue (GGR) during the third quarter, amid another “strong” period for the multi-national lottery operator.
Publishing its preliminary unaudited results for the three-month period ended September 30,, and building upon the success already achieved in 2022, Allwyn’s consolidated GGR increased by 11% year-on-year to €958.6m which “reflected continuing organic growth of our businesses, primarily driven by the online channel as well as by the very strong performance of our casinos business in Austria”.
Furthermore, net gaming revenue increased by 10% YoY to €587.5m, while consolidated adjusted EBITDA jumped up 10% YoY to €319.9m, primarily driven by the “strong top-line performance”.
CEO Robert Chvatal commented: “This quarter has seen Allwyn deliver yet another set of strong financial results. We have also continued to deliver on our inorganic growth strategies, with some exciting developments in the UK in particular.
“Our consolidated gross gaming revenue increased by 11% year-on-year in the third quarter and consolidated adjusted EBITDA increased by 10%, driven entirely by organic factors – demonstrating once again the resilience of demand for our products and of our business model.
“We also continue to deliver strong margins and generate robust free cash flows, reflecting our favourable cost structure and focus on cost and capital efficiency.”
Q3 wasn’t just financially rewarding for Allwyn as, in September, the firm was officially awarded the fourth UK National Lottery licence.
The lottery operator was named as the preferred candidate for the fourth licence in March, but an appeal against the decision from current incumbents Camelot delayed the transition period from commencing.
However, that issue was finally settled and Allwyn subsequently entered into an enabling agreement with the UK Gambling Commission before also striking a deal to acquire Camelot’s UK operations.
“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,” added Chvatal.
“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.”
He concluded: “With a significant extension of our maturity profile, a further increase in the size of our RCF, and term funding for the up-front costs of the UK National Lottery, on attractive terms, the financing positions us well for the next chapters of our growth story.”