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Lottery operator Allwyn generated revenue of €7.88bn in FY 2023, marking a substantial increase of 98% year-on-year in a period marked by acquisitions. 

Allwyn’s Camelot acquisition significantly contributed to its expanded lottery footprint, which now spans seven countries. 

In particular, the acquisition of Camelot UK played a pivotal role in supporting Allwyn’s transition as the operator of the UK’s National Lottery, a role it has held since February 2024.

Excluding acquisitions, Allwyn still achieved 6% organic year-on-year revenue growth.

Adjusted EBITDA reached €1.48bn for the year, showing 12% year-on-year growth excluding acquisitions and 27% year-on-year growth on a reported basis.

In Q4 2023, Allwyn’s revenue hit €2.18bn, up by 97% year-on-year on a reported basis and by 4% year-on-year excluding acquisitions.

Additionally, adjusted EBITDA for Q4 amounted to €388.5m, reflecting a 30% year-on-year increase on a reported basis and a 15% year-on-year increase excluding acquisitions.

CEO comment

Commenting on the financial results and strategic achievements, Allwyn CEO Robert Chvatal expressed satisfaction with the company’s performance.

“I believe that the consistent delivery by our teams, bringing new games, new features and upgrades to the player experience, as well as an expanded geographic footprint and enhancements to our in house technology and content, support our aspiration to be the operator of choice and position us well for future growth,” he said. 

“During the year we once again saw the resilience of demand for our products, notwithstanding an inflationary backdrop in which consumer spending remained under pressure,” Chvatal added. 

The CEO also said that with respect to inorganic growth “2023 was another year of delivery of our strategy,” with the acquisitions of Camelot UK and Allwyn LS Group, as well as a further increase in Allwyn’s stake in OPAP.

“Through our inorganic growth strategy, we continue to expand our footprint and capabilities,” he concluded.

Capital structure

Furthermore, Allwyn initiated significant financial measures last year, including issuing €1.3bn of long-dated senior secured notes in April 2023.

“This transaction significantly extended our debt maturity profile and simplified our capital structure, as well as including our first US-dollar bond, further diversifying our sources of funding,” Chvatal added. 

Moreover, yesterday (26 March) Allwyn revealed it had secured a €500m accordion facility with a syndicate of international banks.

Allwyn will use the proceeds to finance its planned investment in Instant Win Gaming, to repay outstanding indebtedness, and for general corporate purposes. 

CFO Kenneth Morton emphasised that these transactions would support the continued execution of Allwyn’s organic and inorganic growth strategies, as well as optimise the cost of capital.

Earlier in the month, The Guardian revealed that Russia’s two largest lenders, VTB and Sberbank, were part of a syndicate that agreed to lend up to €640m to Allwyn in 2020, two years before the operator was named the preferred bidder for the £6.5bn UK National Lottery contract.

Despite repaying the Russian share following the invasion of Ukraine, questions remain regarding whether the loan cushioned Allwyn’s costly bid for the lottery contract.

Outlook

Allwyn said since the end of the year business has continued to perform and develop well.

“Our trading since the start of the year has been broadly in line with our expectations at the start of the year,” it suggested.

The lottery operator added that the impact of key external factors, in particular the macroeconomic environment and consumer sentiment, remained limited, in line with previous quarters. 

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