Allwyn reports National Lottery sales decline in 2023

Allwyn International has marked 2023 as a transformative year for its business, which will now focus on revitalising the performance and sales of the UK National Lottery. 

Upon publishing its unaudited full-year 2023 accounts, the company saw its corporate revenues double to €7.87bn. The year’s accounts detailed that National Lottery sales accounted for a revenue contribution of €3.9bn, down 4% on FY2022 results of €4bn. 

Having succeeded Camelot Group in February 2023 as the new steward of the National Lottery, Allwyn explained that its UK sales performance had been impacted by “unfavourable cycles of EuroMillions jackpots” and “limited product and channel developments towards the end of the previous licence”.

UK results registered declines across all core metrics as National Lottery net revenues dropped by 2% to €813m and EBITDA decreased by 5% to €185m (FY2022: €191m). The firm’s reconciliation statement indicated that Allwyn incurred €145m in direct costs during the transition of the National Lottery.

When excluding UK metrics, Allwyn maintained year-on-year growth, with group revenues totaling €4.4bn (FY2022: €3.98bn), combined with adjusted EBITDA of €1.32bn, up 12% on FY2022 results of €1.16bn. 

European growth was maintained despite a decrease in the number of EuroMillions draws with a jackpot above €100m in 2023 to only 14, compared with 33 in the previous year.

The lottery group’s Austrian Unit achieved a 5% increase in sales to €1.5bn and an adjusted EBITDA contribution of €283m (FY2022: €261m) – driven by online growth, offsetting weaker Euro jackpots. In Greece, its OPAP subsidiary’s operating efficiencies helped generate a 7% increase in revenues to €2.1bn and an adjusted EBITDA contribution of €742m.

European trading was concluded by the Czech SAZKA unit recording a 10% increase in revenues to €510m and adjusted EBITDA of €125m (FY2022: €119m). With the takeover of the National Lottery and the enlargement of its business, Allwyn recapitalised its business. Capital proceedings concluded in April 2023 with the lottery group securing terms on a €1.3bn bond issuance.

Investors were informed: “In April, the Group issued €665m in aggregate principal amount of 7.250% senior secured notes due 2030, and USD 700m in aggregate principal amount of 7.875% senior secured notes due 2029.”

Commenting on the results, Group CEO, Robert Chvatal, detailed: “2023 was another year of strong financial and operational performance and strategic progress. We executed our growth strategies successfully while maintaining our relentless focus on safer play and accountability to all our stakeholders. 

“With respect to inorganic growth, 2023 was another year of delivery of our strategy, with the acquisitions of Camelot UK and Allwyn LS Group, as well as a further increase in our stake in OPAP in our Greece and Cyprus segment.”

He continued: “Since the beginning of 2024, we have successfully started operation of the next 10-year licence for The National Lottery in the UK, in addition to announcing our plan to partner globally with and invest in Instant Win Gaming (‘IWG’), a leading supplier of online instant win games. Through our inorganic growth strategy, we continue to expand our footprint and capabilities.”