Allwyn Reports Strong Q2 2022 Results Driven by Organic Growth and Strategic Acquisitions
The global lottery giant, Allwyn, witnessed substantial revenue expansion in the second quarter of 2022. Their total gaming income (TGI) hit €901.7 million, a remarkable surge of 23% year-over-year. This positive trajectory was fueled by a blend of internal growth within established markets and the resurgence of physical retail locations in specific areas.
Financial gains were also evident, with net gaming proceeds (NGP) climbing by 24% to €550.9 million. Additionally, their modified earnings before interest, taxes, depreciation, and amortization (EBITDA) saw a 17% rise, reaching €277.1 million. It is important to note, however, that the adjusted EBITDA margin experienced a minor contraction of 3 percentage points, settling at 50%.
Allwyn’s digital footprint continues to expand, especially in the Czech Republic, where online platforms now constitute 44% of the overall TGI, a noteworthy jump from 38% in the corresponding quarter of the previous year.
The organization remains dedicated to its growth plan, actively seeking acquisitions and engaging in competitive bids. This includes their ongoing efforts to assume control of the UK National Lottery’s operations, following the Gambling Commission’s official license approval.
Allwyn’s Chief Executive, Robert Chvatal, conveyed his contentment with the company’s robust financial results and advancements in crucial strategic endeavors. He also emphasized their arrangement with OPAP to secure a 36.75% ownership in Kaizen, further solidifying their presence within the gaming sector.
Kaizen, a rapidly expanding internet sports wagering and iGaming enterprise, established by the identical group that founded Stoiximan, utilizes its own exclusive gaming software.
“Functioning under the Betano trademark, the firm operates in seven regions, with a particularly robust presence in Romania and Portugal, and is swiftly expanding in Brazil. I have been incredibly impressed with what the squad has achieved thus far at Stoiximan and am enthusiastic about Betano’s future possibilities,” remarked Chvatal.
The transaction, contingent upon regulatory authorizations, is anticipated to finalize in the fourth quarter.
“In general, I am quite content with both Allwyn’s fiscal performance and strategic advancement in the quarter, and I am optimistic and thrilled about the outlook for the remainder of the year and beyond,” he appended.
For the half-year concluded June 30, 2022, Allwyn’s gross gaming income (GGR) was €1.77 billion, a surge of 41% year-over-year. Net gaming income (NGR) escalated by 50% to €1.08 billion, while adjusted EBITDA climbed by 45% to €543.8 million.
In June, departing National Lottery permit holder Camelot observed that although lottery sales had diminished by £283 million ($347 million) in its 2021/22 fiscal year, the sum it generated for charitable purposes remained the second-highest ever recorded.