Allwyn has released its financial results for Q2 2024. In total, the operator reported revenue of €2.15bn ($2.39bn), of which gross gaming revenue (GGR) was €2.06bn; both up 5% year-on-year. Net revenue experienced similar growth, up 4% to €941.2m, while adjusted EBITDA saw a decline year-on-year, dropping 11$ to €340m.
Results excluding Camelot
When excluding the impact of Allwyn’s Camelot acquisition – which was completed in March of last year – total revenue came to €1.08bn, with GGR of €1.04bn, both up 6%. Net revenue reflected similarly, up 5% to €685.4m, though where results differ is EBITDA.
When excluding Camelot in Q2, adjusted EBITDA was up 4% year-on-year, coming to €338.1m. It seems Camelot, therefore, has been a primary source of declining earnings, reflected in the operator's overall results.
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 license in the United Kingdom - Allwyn CEO Robert Chvatal
Results by geo
Austria
Looking at Allywn’s earnings by country, in alphabetical order, Austria is the first to analyse. In total revenue from the nation came to €401m, of which GGR was €386.9m, with a net revenue of €216.2m and operating EBITDA of €71.7m; all up 7% year-on-year. Adjusted EBITDA was also up, though this was slightly less than other metrics, growing 4% year-on-year to €69.6m.
Allwyn pointed to numerical lotteries being a key driving factor for the segment's growth, which were up 10% year-on-year. It also highlighted the impact of online GGR during he quarter, which was up 21% year-on-year.
Czech Republic
The Czech Republic saw a far more mixed bag of results in Q2 compared to Austria, with revenue down 1% to €124.6m. Net revenue and operating EBITDA also saw declines year-on-year, down 6% to €80.5m and down 5% €33.7m respectively. Despite this, GGR was up 1% to €122.1m and adjusted EBITDA was up 5% to €32.1m.
Greece and Cyprus
With Allwyn owning a majority share in OPAP, Greece’s National Lottery operator, figures from Greece and Cyrus were significantly higher than those reported from the Czech Republic and Austria. However, trends in metrics reflect similarly to those seen in the operators Camelot-excluded results, likely due to the sizeable contribution this geo gives to Allwyn’s overall financial results.
Overall, revenue came to €558.2m, of which €532.8m came from GGR; both up 7% year-on-year. Net revenue came to €389m, up 6%, while adjusted EBITDA came to €183.9m, up 2% year-on-year.
Based on a share buyback program initiated in October last year, during the quarter, OPAP repurchased 0.81% of its total outstanding shares for €45.9m. Now, Allwyn’s share in OPAP has increased from 51% as of 31 March 2024 to 51.45 as of 30 June 2024.
Italy
Just outperforming Greece and Cyprus in terms of total revenue was Italy, which made €581.8m, up 4%. Net revenue came to €120.5m, up 3%, while adjusted EBITDA came to €97m, also up 3%.
UK
The reason for Allwyn’s overall adjusted EBITDA loss of 11% (and 4% increase excluding Camelot) is clear as day when looking at the operators’ UK results. While total revenue and GGR followed a similar pattern to other geos, both making €1.02bn for a year-on-year growth rate of 4%, adjusted EBITDA fell sharply, falling 92% to €4.2m compared to last year's €50m. However, despite its revenue the UK reflects one of Allwyn’s smallest adjusted EBITDA figures (with only US operations being smaller), explaining why such a sharp decline only resulted in an 11% drop in adjusted EBITDA for the operator overall.
According to Allwyn, the decline was driven by “the introduction of a new incentive and profitability mechanism with the start of the new licence.”
US
Allwyn LS, which operates the state lottery in Illinois under a private management agreement, made €48.6m in Q2 2024, up 3%. However, it seems Allwyn has also faced some hardship across the pond, with adjusted EBITDA down 61% to €3.1m from last year’s €7.9m. Much like the UK, both of these regions have seen sizeable EBITDA decline despite minor improvements to revenue, suggesting a challenge in retaining earnings which may be contributable to a number of factors.
In the States, the adjusted EBITDA drop was explained as being due to “lower incentive fees,” as well as “weaker development in June, owing to higher prize payouts and a strong performance in the second quarter in the prior year.”
When excluding the impact of Allwyn’s Camelot acquisition – which was completed in March of last year – total revenue came to €1.08bn, with GGR of €1.04bn, both up 6%
H1 results
As well as breaking down its Q2 results, Allwyn also outlined its financial results for the first half of the year.
In total, H1 revenue came to €4.26bn, with a GGR of €4.08bn, both up 15%. Net revenue was up 10%, coming to €1.88bn, though adjusted EBITDA for the first year was down, dropping 4% to €697.8m.
Excluding Camelot shows growth across the board for the period, with total revenue and GGR up 5% to €2.19bn and €2.1bn respectively. Even adjusted EBITDA saw an increase, up 4% year-on-year to €672.8m.
Comments
On the results, Allwyn CEO Robert Chvatal said: “I am pleased to report another quarter of continued progress and solid financial performance, reflecting continued execution of our growth strategies. 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 license in the United Kingdom.
“Total revenue increased 5% year-on-year, with strong organic growth in Austria, the Czech Republic and Greece and Cyprus... Excluding the United Kingdom as well as Allwyn LS Group, which was acquired during the first half of 2023, adjusted EBITDA increased 4% year-on-year.”
