Allwyn, the organization set to assume control of the UK National Lottery, recently declared an outstanding third quarter. Their overall gaming income surged to €958.6 million (approximately $994.3 million!), a remarkable 11% increase compared to the corresponding period last year.
Their profitability is also noteworthy! Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization, for those unfamiliar with the term) experienced a robust 10% rise, hitting €319.9 million. Although their adjusted EBITDA margin saw a slight decrease compared to 2021, settling at 54%, it remains indicative of a lucrative enterprise.
What’s fueling this triumph? A significant portion appears to originate from the Czech Republic, where Allwyn’s digital sales are flourishing. Online avenues now constitute nearly half (46%) of their total sales in the nation, a substantial jump from the 39% share they held in the same timeframe last year.
Furthermore, there’s more encouraging news on the horizon! Recall how Allwyn secured the contract for the UK National Lottery’s fourth license period, commencing in February 2024? This development provided a welcome boost to their stock value in the third quarter.
Robert Chvátal, Allwyn’s CEO, is understandably content. He emphasized the company’s strong inherent expansion, citing the 11% surge in gross gaming revenue and 10% increase in adjusted EBITDA as evidence that their offerings and operational approach are resonating with consumers. He also conveyed enthusiasm about Allwyn’s wider business activities, suggesting even more favorable outcomes in the future.
We were truly happy with the effectiveness of our operations – our profitability is robust, and we’re producing excellent cash influx. This triumph is proof of our emphasis on cost management and astute financial decisions. Securing the UK lottery is a huge victory, establishing it as our sixth market and contributing two substantial accomplishments to our achievements solely within the preceding quarter.”