Allwyn International has released its preliminary unaudited financial results for the first quarter of 2024, demonstrating robust year-on-year growth primarily driven by strategic acquisitions and organic initiatives. The company’s total revenue surged by 28% to €2.11 billion ($2.3 billion), underpinned by substantial contributions from newly consolidated segments. Excluding these, Allwyn still achieved a respectable 3% revenue growth. This growth trajectory underscores Allwyn’s proactive approach to expanding its market presence and enhancing operational efficiencies.
Revenue Breakdown
The standout performance in Q1 2024 was marked by a notable increase in gaming activities, with Gross Gaming Revenue (GGR) climbing 27% to €2.02 billion. Net revenue followed suit with a 16% rise to €940.9 million, reflecting strong operational execution amid a competitive landscape. The adjusted EBITDA grew modestly by 3% to €357.8 million, despite a slight decrease in the adjusted EBITDA margin to 38.0%. This margin adjustment reflects ongoing strategic investments aimed at sustaining future growth.
Strategic Initiatives and Acquisitions
Allwyn’s strategic initiatives during the quarter were highlighted by significant acquisitions and capital expenditures. Notably, the company completed the acquisition of Camelot UK, operator of the UK National Lottery until January 2024, and Allwyn LS Group, operator of the Illinois Lottery. These acquisitions have redefined Allwyn’s operational footprint, contributing substantially to its revenue stream.
Capital expenditure witnessed a substantial uptick, soaring by 84% year-on-year to €45.0 million. This increase was primarily driven by intensified investments in the United Kingdom, aimed at bolstering Allwyn’s transformational initiatives for the UK National Lottery. Such investments underscore Allwyn’s commitment to enhancing customer experience and operational efficiency in key markets.
Financial Performance and Debt Management
Financially, Allwyn demonstrated prudent management amidst its expansionary phase. The company secured €500 million through a bank facility and syndicated a $450 million Term Loan B facility in March 2024. As of March 31, 2024, Allwyn maintained a net debt to adjusted EBITDA ratio of 2.1x, reflecting a balanced approach to leveraging for growth while ensuring financial stability.
CEO Perspective and Corporate Social Responsibility
CEO Robert Chvatal expressed optimism about the company’s performance, citing solid operational and financial achievements in Q1 2024. He emphasized the successful commencement of operations for the UK National Lottery under a new 10-year license as a pivotal milestone. Chvatal underscored Allwyn’s commitment to both organic and inorganic growth strategies, evident from the planned acquisition of a 70% ownership stake in Instant Win Gaming (IWG), aimed at enriching its gaming content offerings.
Furthermore, Allwyn continued its corporate social responsibility efforts, partnering with the Peace Race for the second consecutive year. This initiative supports cycling tours promoting peaceful cooperation within central Europe, aligning with Allwyn’s broader commitment to societal well-being.
Allwyn International’s Q1 2024 financial report highlights a period of significant growth and strategic advancements. The company’s robust revenue growth, driven by key acquisitions and operational enhancements, underscores its resilience and proactive market approach. As Allwyn continues to expand its footprint and enhance its product offerings, its commitment to financial discipline and corporate social responsibility remains steadfast. Looking ahead, Allwyn is poised to capitalize on emerging opportunities while delivering sustainable value to its stakeholders.