The winner of the fourth UK National Lottery tender Allwyn International posted today its financial results for the three months ended March 31, 2022, to reveal an overall solid performance and growth across key metrics.
Consolidated Gross Gaming Revenue
Allwyn recorded €869.3 million ($904.1 million) in consolidated gross gaming revenue in the first quarter of 2022 to post an increase of 65.2% as compared to the €526.3 million ($547.4 million) it accounted for in Q1 2021.
The increase in revenue was fueled mainly via the operator’s core market, Greece and Cyprus, which posted an impressive €457.2 million ($475.5 million) in GGR and 162% year-over-year growth, while Austria came third with €309.3 million ($321.7 million).
The Czech Republic posted a marginal increase of 7% to €102.8 million ($106.9 million) while Italy disappointed with €115.5 million ($120.1 million) and a decline of 14% as compared to Q1 2021.
Allwyn’s net gaming revenue (NGR) for the first three months of 2022 was €534.4 million ($555.8 million), up 88.8% to €283 million ($294.3 million) the international lottery operator registered in the first quarter of 2021.
Adjusted EBITDA and Adjusted EBITDA Margin
Allwyn registered an adjusted EBITDA of €268.8 million ($279.6 million) in the first quarter of 2022, an impressive increase of 86% in comparison to the adjusted EBITDA in the first quarter of 2021 of €144.4 million ($150.2 million).
The growth in adjusted EBITDA did not affect the group’s adjusted EBITDA margin which dipped slightly in the reported quarter to 50%, being 51% in the respective three-month period of 2021.
Allwyn’s achieved a 287% year-over-year increase in Q1 2022 post-tax profit to €128.9 million ($134 million) as compared to €33.3 million ($34.6 million) it ended the first quarter in 2021.
The group’s free cash flow at the end of the quarter was €249.8 million ($259.8 million).
Future Outlook of the Business
Allwyn’s chief executive officer Robert Chvatal outlined the strong start of the year for the business which “delivered on several important strategic initiatives” and produced solid financial results but remained cautious in his future outlook due to the impact of current inflationary pressures on consumer spending.
“We note that general consumer demand has weakened in the last few months due to persisting inflationary pressures. However, our business has seen only a limited impact so far due to the low price point of our products and low average spend, as well as our large number of regular players.”
Robert Chvatal, CEO, Allwyn
And while any developments related to the ongoing legal debate around the fourth UK National Lottery license is hanging on the court’s ruling, Allwyn suffered small setback on the m&a front after an announcement that its merger with SPAC Cohn Robbins would close in Q3 2022.