Allwyn International is experiencing consistent growth in its traditional markets, alongside key developments in the UK and North American sectors. A preliminary trading update shows revenues of €2.14 billion for the third quarter, a 7% increase from last year’s €2 billion.
This growth is largely attributed to strong performances in Austria, with a 7% rise in gross gaming revenue (GGR), and in Greece and Cyprus, where there was a significant 17% increase. The UK saw a moderate GGR increase of 1% at constant currency and 3% on a reported basis.
The company doubled its capital expenditure for the quarter to €71 million, mainly to enhance the UK National Lottery. In North America, Allwyn acquired a 70% stake in Instant Win Gaming (IWG), a leading supplier of online instant games in the region. This $242 million deal, which includes performance-based earnouts, aims to bolster Allwyn’s content and technology offerings in North America.
Excluding the UK and North America, adjusted EBITDA rose by 12% year-on-year to €410 million, up from €368 million in Q3 of the previous year. CEO Robert Chvatal expressed contentment with the company’s performance, citing significant growth in Greece and Cyprus, and solid profitability overall. He pointed to a 7% revenue increase driven by expanding digital channels and innovative product offerings, emphasizing a commitment to providing high-quality content and a focus on safe play.
### Regional Highlights
#### Greece and Cyprus
With revenues reaching €591 million, up 17% from the previous year, this growth was propelled by a robust online channel, favorable jackpot cycles in Tzoker, and strong activity in iGaming and sports betting. Adjusted EBITDA rose by 26% to €213.4 million, aided by cost efficiencies.
#### Austria
The region recorded a 7% increase in revenue, totaling €407.3 million. This was fueled by a 17% increase in numerical lotteries and a 12% rise in iGaming. However, adjusted EBITDA slightly declined by 2% to €74 million due to increased personnel costs.
#### United Kingdom
Revenue grew by 3% to €980.9 million, despite challenges in product and channel development under the new National Lottery licence. The adjusted EBITDA plummeted by 84% to €7 million, reflecting the impact of the new licensing terms on profitability.
### Year-to-Date Performance
Throughout the first nine months of 2024, Allwyn’s total revenue reached €6.4 billion, showing a 12% increase compared to the same timeframe in 2023. The adjusted EBITDA was €1.1 billion, marking a slight year-on-year increase of 1%.
Group CEO Chvatal concluded by highlighting the strong profitability achieved, particularly driven by Greece and Cyprus, along with equity method investments. Excluding contributions from the UK, Allwyn LS Group, and IWG, adjusted EBITDA grew by 21% year-on-year. The acquisition of IWG has enhanced Allwyn’s digital capabilities and reinforced their North American presence. Furthermore, increased interest in OPAP reflects a strong belief in its ongoing success. As the company moves forward, there is confidence in its ability to sustain growth and capitalize on future opportunities. This report underscores Allwyn’s commitment to overcoming challenges and driving growth in key areas.
