Allwyn records a significant spike in annual revenue in the preliminary unaudited report for 2022
Author:
Muhammad Gregory
After a highly successful year, one of Europe’s leading multi-national lottery operators, Allwyn International, reported impressive spikes in the consolidated total revenue and consolidated adjusted EBITDA in its preliminary unaudited report for the financial year of 2022. The consolidated total revenue recorded a 23.8 percent year-on-year increase, while the consolidated adjusted EBITDA was up 20.7 percent compared to the corresponding period last year.
2022 was a crucial year for Allwyn International as the operator completed a few acquisitions to expand its operations and focused on growing organically in the market.
?Robert Anasch/Unsplash
2022 was a crucial year for Allwyn International as the operator completed a few acquisitions to expand its operations and focused on growing organically in the market. The Switzerland-based lotto operator mentioned that the significant spikes were evident signs of its continued organic growth in the gambling markets. Last April, Allwyn initiated a partial acquisition of Kaizen Gaming Limited,focusing on its business activities outside Cyprus and Greece. The Swiss operator paid €50 million upfront to acquire 36.75 percent of Kaizen Gaming Limited and completed the acquisition in December 2022. In September, the UK Gambling Commission (UKGC) confirmed that Allwyn Entertainment Limited would operate the UK National Lottery from February 2024 by issuing a fourth National Lottery license. Camelot held the monopoly of the UK National Lottery for 30 years, and now the United Kingdom will see a new operator at the helm for at least the next ten years starting February 2024.
In the final quarter of 2022, an agreement was in place for Allwyn to complete the acquisition of Camelot UK and Camelot Lottery Solutions Group. The acquisition of the former was officially completed in February this year, while the takeover of the latter concluded successfully last month. Amidst these two acquisitions, Allwyn purchased more shares of the Greek gambling company OPAP. Previously, the Swiss operator owned 9.47 percent shares, but after the increase, Allwyn now holds a majority stake in OPAP. The noteworthy spikes in the consolidated total revenue does not include the contribution of Camelot UK and Camelot LS because the acquisition of both entities was completed this year. Despite that, the performance of Allwyn in the gambling markets has been impressive. The operator has recovered well from the setbacks that were caused due to the Covid-19 pandemic a few years ago. Online sales were a vital segment for the operator, making up 44 percent of the Gross Gaming Revenue (GGR).
In 2021, the total revenue recorded by Allwyn International was €3.22 billion. Last year, that figure jumped to €3.99 billion marking a 24 percent year-on-year increase. €3.81 billion of the total revenue was attributed to the GGR, which was also 24 percent higher than the €3.07 billion attributed in 2021. The net revenue was up 27 percent as it rose from €1.99 billion in 2021 to €2.53 billion last year. Operating EBITDA was €1.13 billion last year, 19 percent higher than the €954 million figure in 2021. Finally, the adjusted EBITDA also marked a difference of 21 percent at the end of 2022. In 2021, the figure was €966.8 million, and the following year, it soared to €1.17 billion. The operator noted strong performances and steady growth across all segments and in all regulated markets where Allwyn is present. Company CEO Robert Chvatal was extremely pleased with the vital boost in growth and revenue last year, and also mentioned how the group was also focused on responsible gaming.
“I am pleased to report that Allwyn achieved another year of strong financial results in 2022, reflecting our continued successful execution of our organic and inorganic growth strategies. These results demonstrate how much the business has progressed in the last several years, with both Total Revenue and EBITDA growing by over 90% since 2019 – during which time we have also deleveraged by more than 1x Adjusted EBITDA, significantly increased our ownership in our existing businesses, and strengthened our platform and increased our strategic optionality and diversification through securing entries into the UK and US markets. While delivering this strong performance, we have remained focused on our responsibilities to all our stakeholders and on safer gaming.”
Allwyn confirmed Wings for Life World Run sponsorship
Last month, Allwyn UK confirmed a partnership deal with the fundraising race Wings for Life World Run. The two entities agreed on and signed a three-year contract during which the Swiss operator would be the foundation’s solitary principal partner. Wings for Life World Run is raising funds to aid research to find a cure for spinal cord injuries. The first race was held in May 2014, and in 2021, 184,236 participants made it the largest running event of the year. Last year, 161,892 participants from 192 countries signed up for the race that does not have a finish line. Instead of a finish line, the race includes a Catcher Car that pursues participants half an hour after the commencement of the race.
Last year’s race raised €4.7 million for the Wings for Life World Run. From the first-ever race till the latest one, the foundation has raised €38.3 million. The entire sum has been redirected to the spinal cord injury cure research. The partnership deal with Allwyn will see the operator encourage its employees to participate in the upcoming races. More than 6,000 people work for Allwyin in the European countries of Austria, Cyprus, Greece, the Czech Republic, and the United Kingdom. The first race after the collaboration between the two entities will take place this year on 7th May, and it will be hosted in multiple locations around the world. Everyone can participate in this event, from fun runners to professional runners.
An accordion loan after the massive collaborative loan
As 2022 entered its penultimate month, Allwyn finalized numerous deals with multiple international banks and secured a collaborative loan of €1.66 billion. The breakdown of the loans revealed what amount and type of loan the operator had received. The first was a €455 million amortizing term loan. Another €455 million came in the form of a bullet term loan. A sum of €310 million was tied to a revolving credit facility. The amortizing loans will be due after five years from the application date, while the bullet-term loans will have to be repaid in six years. The third will be due in four years.
The massive loan was picked up for segments that urgently needed funds. The first was to settle debt, and the second was reserved for damage limitation in case the operator could not repay an installment or a specific amount on the due date. In March this year, Allwyn roped in a credit amount of €335 million in the form of accordion loan facilities. This sum will come in the form of six-year term loans coming from multiple lenders. Some of them are new, while the others have already helped Allwyn secure the previous loan. The CFO of Allwyn, Kenneth Morton, specified that the new loan would help the operator expand its business further.
