Allwyn’s Strong Q3 Results Were Driven by the Camelot Acquisition

Lottery leader Allwyn has published its Q3 2023 preliminary unaudited results, highlighting the contribution of the company’s acquisition of Camelot.

In Q3, Allwyn reported consolidated total revenue of EUR 2 billion (approximately $2.16 billion), representing a stellar 98% year-on-year increase. As mentioned, these results were underpinned by the company’s recent acquisitions. Excluding these, the company’s consolidated total revenue was EUR 1 billion, which translates to a decline of 1%.

Consolidated adjusted EBITDA for the period was EUR 368 million ($398 million), 16% up year-on-year. EBITDA margin for the period was 41.7%. Excluding Allwyn’s recent acquisitions, the company reported adjusted EBITDA of EUR 319 million, 1% up YoY.

Allwyn also remarked that its Q3 performance was impacted by customer-friendly sports results and unfavorable jackpot cycles.

The company concluded the quarter with consolidated net debt / pro forma LTM adjusted EBITDA of 1.7x.

CEO Chvatal Praised the Results

Robert Chvatal, Allwyn’s chief executive officer, commented on the solid financial performance, praising the company’s significant strategic progress. He said that the increased revenue reflects a steady performance in the markets where Allwyn operates and added that the contribution of the Camelot acquisition cannot be overstated.

Chvatal also remarked a continued progress in the digital sector where the company continues to see the benefits of its ongoing focus on product development. In addition, the company continues to roll out important game innovations in multiple markets.

The CEO added that the company remains committed to driving shareholder value in a safe and responsible way. He also added that the company’s favorable cost structure was reflected in the limited impact of inflation on Allwyn’s cost base.

Chvatal also mentioned the strong free cash flow generation of Allwyn’s business model, saying that it was reflected in the EUR 150 million share buyback program in Greece and Cyprus. The CEO noted that the company does not plan to tender shares and expects its economic interest in OPAP to increase marginally as the buyback is carried out.

Chvatal concluded:

Overall, despite the sector headwinds in the quarter, I am very pleased with Allwyn’s continued progress and believe we are well placed to end 2023 successfully, and for the next chapters of our growth story.

Robert Chvatal, CEO, Allwyn

In other news, the UKGC’s decision to select Allwyn as the next The National Lottery operator was challenged once again, this time by Richard Desmond.