Allwyn has unveiled a robust double-digit increase in its adjusted EBITDA for the preliminary third quarter, driven by exceptional growth in Greece and Cyprus.
For the quarter, Allwyn’s total revenue reached €2.1 billion, marking a 7% year-on-year rise. The pan-European company attributed this boost to notable “strong organic growth” in Austria as well as Greece and Cyprus.
The firm also credited its digital division for maintaining growth momentum. Overall, adjusted EBITDA amounted to €410.8 million, a 12% increase from the previous year. Nevertheless, this positive trend was partly offset by a substantial decline in the UK’s EBITDA.
In fact, when excluding figures from the UK, US, and its technology and content sectors, adjusted EBITDA saw a 21% year-on-year surge to €384.3 million.
Within the UK, Allwyn, which commenced its tenure as the fourth National Lottery licensee in February, experienced a sharp decrease in adjusted EBITDA, falling to €7 million from €44.4 million – an 84% drop compared to the previous year.
The main reason for this decline was the new incentive and profitability mechanism introduced with the onset of the new license. Despite this setback, total revenue for the UK’s segment increased by 3% year-on-year to €980.9 million.
On the UK operations, Allwyn stated: “We continue to be dedicated to transforming the UK National Lottery, focusing on modernizing legacy systems to expand our product offerings and enhancing the overall customer experience.”
Meanwhile, Greece and Cyprus saw remarkable growth in total revenue, escalating by 17% year-on-year to €591.4 million, with adjusted EBITDA expanding by 26% to €213.4 million.
Allwyn attributed this success to the expansion of the online market, as well as the growth in lotteries, sports betting, and igaming.
The company benefited from a significant jackpot in Tzoker, marking its second-largest prize in history, alongside a packed calendar of sporting events that concluded with the last two weeks of Euro 2024.
In Austria, total revenue increased by 7% year-on-year to €407.3 million, despite adjusted EBITDA decreasing by 6% to €74 million. Czechia experienced a 4% year-on-year decline in total revenue to €118.1 million, along with a 5% reduction in adjusted EBITDA to €27.5 million.
Total revenue in North America, alongside technology and content sectors, grew by 5% to €55.7 million, with adjusted EBITDA seeing a modest 1% increase to €11.1 million.
In Italy, both net revenue and adjusted EBITDA saw a slight downturn of 2% year-on-year, standing at €113.2 million and €91.2 million, respectively.
Commenting on the results, Allwyn CEO Robert Chvátal expressed satisfaction with the company’s progress and financial results, highlighting robust top-line growth with exceptional performance in Greece and Cyprus, alongside strong profitability and cash flow generation.
“The quarter marked a 7% year-on-year increase in total revenue, propelled by the ongoing expansion of our digital channel and the development of our product offerings,” he said. “We remain focused on our commitments to stakeholders, including ensuring safe play. The quarter’s results were bolstered by favorable jackpot conditions.”
Chvátal noted that this quarter presented a stark contrast to the previous year, which suffered from a series of less favorable jackpots and sports results that were beneficial to customers.