Allwyn revenue rises 5% to $2.38 billion, driven by strong performance across European operations

Allwyn International reported a 5% rise in revenue to €2.15 billion ($2.38 billion) in the second quarter of 2024, bolstered by strong performance across its European operations, the lottery conglomerate said on Friday.

The company's adjusted EBITDA, however, fell 11% year-on-year to €340 million ($377 million), driven by lower profitability in the UK market after Allwyn began operating the UK National Lottery under a new licence on February 1. Excluding the UK segment, Allwyn's adjusted EBITDA grew by 4%, underscoring strength across other regions.

Revenue from Allwyn's UK operations increased by 4% to €1.02 billion, but adjusted EBITDA for the market plunged 92% to €4.2 million due to a new incentive and profitability mechanism that ties earnings growth to returns to good causes.

"I am pleased to report another quarter of continued progress and solid financial performance, reflecting continued execution of our growth strategies," said CEO Robert Chvatal. "We delivered good top-line momentum and solid growth in profitability in most geographies, with our overall financial performance reflecting the new incentive and profitability mechanism under the new licence in the UK."

Growth in Austria, Greece, and Cyprus helped drive revenue growth in Europe, with Greek subsidiary OPAP's revenue rising 7% to €558.2 million, while Casinos Austria posted a 7% increase in revenue to €401 million.

In the United States, Allwyn's LS Group, which operates the Illinois Lottery, saw revenue rise 3% to €48.6 million, though adjusted EBITDA dropped 61% to €3.1 million due to lower incentive fees and higher prize payouts.

The company also completed its acquisition of a 70% stake in Instant Win Gaming (IWG), a developer of online instant win games supplying over 25 lotteries worldwide. Co-founders Rhydian Fisher and Simon Bucknall will remain as CEO and COO, respectively.

Earlier in the quarter, Allwyn secured a $450 million Term Loan B facility to refinance existing debt, diversify funding sources, and extend debt maturity.

For the first half of 2024, Allwyn reported revenue of €4.26 billion, up 15% from the previous year. Excluding acquisitions in the UK and US, revenue increased by 5% to €2.19 billion, demonstrating continued growth across its other markets in Europe.

"I am pleased with our continued progress and believe we are well-placed for the remainder of 2024 and the next chapters of our growth story," Chvatal added.