Allwyn International has underscored its competence in executing strategic directives to continue the transformation of its global lottery operations and offerings.
Posting its Q2 2024 unaudited results, the lottery conglomerate accumulated revenues of €2.15bn, up 5% on 2023 comparatives of €2bn.
Group accounts continue to stabilise with Allwyn UK beginning its operation of the National Lottery licence from 1 February 2024.
The UK contract maintains an impact on Allwyn International’s consolidated metrics and comparability with the previous period.
As noted by management: “Differences between the business models of the acquired businesses and existing operations, and between the previous and current licences for the UK National Lottery, also result in profit margins not being directly comparable between periods.”
Allwyn International maintains net revenue growth at €941m (Q2 2023: €906m), reflecting the continued ‘organic growth’ of its European subsidiaries OPAP (Greece), SAZKA (Czech Republic), and Casinos Austria.
Accommodating National Lottery adjustments, group accounts incurred a 6% downturn in operating margin to 36% (2023: 42%) as Q2 adjusted EBITDA declined by 11% to €340m. Excluding UK impacts, Allwyn states that period EBITDA tracks at +4%.
Further corporate developments saw Allwyn complete its investment in Instant Win Gaming (IWG), taking a 70% interest in the games developer, which has 250 instant win titles and is a direct supplier to 25 international lotteries.
Building its games development resources, Allwyn will retain IWG co-founders Rhydian Fisher and Simon Bucknall, currently IWG’s CEO and COO, in their respective roles following the acquisition.
Robert Chvátal, Allwyn CEO, commented: “I am pleased to report another quarter of continued progress and solid financial performance, reflecting the continued execution of our growth strategies.
We delivered solid profitability growth outside the United Kingdom and once again benefited from a strong performance by our equity method investees. Excluding the United Kingdom, as well as Allwyn LS Group, which was acquired during the first half of 2023, adjusted EBITDA increased 4% year-on-year.”
Following the end of the quarter, we are very pleased to have completed our planned investment in a 70% interest in Instant Win Gaming, a leading supplier of online instant win games, expanding our footprint and capabilities.