Allwyn reports resilience, expansion and robust growth for FY23

Allwyn International has announced its preliminary unaudited financial results for the three and twelve months ended 31 December 2023. The results highlight a year of robust growth and strategic acquisitions, underlining the company’s strong financial position and promising future.

“During the year we once again saw the resilience of demand for our products, notwithstanding an inflationary backdrop in which consumer spending remained under pressure. We also continued to deliver solid margins and free cash flow generation, with only a limited impact of inflation on our cost base“

Robert Chvatal, CEO – Allwyn

In FY 2023, Allwyn reported a consolidated total revenue of €7,878.1 million, marking a significant increase of 6 percent YoY, excluding acquisitions made during the year. When including these acquisitions, the growth was an impressive 98 percent YoY. The company’s consolidated adjusted EBITDA stood at €1,484.6 million, bolstered by a growth of 12 percent YoY, excluding acquisitions. With the acquisitions included, the growth was 27 percent YoY.

The fourth quarter also saw strong performance, with Allwyn’s consolidated total revenue reaching €2,177.5 million, marking a 4 percent YoY growth excluding acquisitions, and a 97 percent YoY growth on a reported basis. The Q4 consolidated adjusted EBITDA was €388.5 million, which was a 15 percent YoY growth excluding acquisitions, and a 30 percent YoY growth on a reported basis.

Diversification and growth

During this period, Allwyn made two significant acquisitions, including Camelot UK and Allwyn LS Group. These acquisitions supported Allwyn UK’s successful start of the next licence for The National Lottery after the year ended and expanded Allwyn’s lottery footprint to seven countries.

To further strengthen their financial position, Allwyn issued approximately €1.3 billion equivalent of senior secured long-dated notes, including their debut USD Dollar issuance. They also raised a €335 million bank facility, extending their maturity profile and further diversifying their funding sources. As of 31 December 2023, Allwyn’s consolidated net debt to adjusted EBITDA ratio was 1.6x, indicating a healthy financial position for the company. The business modes of Camelot UK and Allyn LS Group differ from the existing operations and as a result the profit margins between these entities and existing operations are not directly comparable, an important point to consider when analysing financial performance post acquisition. Is important to note that the business models of Camelot UK and Allwyn LS Group differ from our existing operations. As a result, the profit margins between these entities and our existing operations are not directly comparable. This difference is a key factor to consider when analyzing our financial performance post-acquisitions.

Resilience and acquisitions

CEO Robert Chvatal said that the company maintained solid margins and generated substantial free cash flow, with inflation having only a limited impact on its cost base. This was largely due to Allwyn’s favourable cost structure, where the largest cost categories are directly linked to revenue, and the company’s focus on cost and capital efficiency. Chvatal highlighted 2023 as a year of planned delivery, particularly in terms of inorganic growth. The company expanded its operations through the acquisitions of Camelot UK and Allwyn LS Group, and increased its stake in OPAP in Greece and Cyprus. As 2024 began, Allwyn successfully started operating the next 10-year license for The National Lottery in the UK and announced plans to partner with and invest in Instant Win Gaming (IWG), a leading supplier of online instant win games. These moves are part of Allwyn’s strategy to continue expanding its footprint and capabilities. On the financing front, 2023 was a successful year for Allwyn, Chvatal said. A key highlight was the issuance of €1.3 billion of long-dated senior secured notes in April, which significantly extended the company’s debt maturity profile and simplified its capital structure. This transaction also marked the company’s first US-dollar bond, further diversifying its sources of funding. Allwyn continued to receive strong support from its banking partners, as evidenced by the signing of €335 million of accordion facilities under its Senior Facilities Agreement in the first quarter. This momentum carried into 2024 with the recent signing of another €500 million accordion facility, reflecting the strength of Allwyn’s financial performance and credit. Chvatal expressed his gratitude to his colleagues for their dedication and hard work, which contributed to Allwyn’s performance in 2023. He also welcomed new colleagues who have joined or will be joining the company. Looking forward, Chvatal said that he is excited about Allwyn’s future as the company continues to focus on driving both organic and inorganic growth. “I am excited about what the future holds for Allwyn as we continue to focus on driving both organic and inorganic growth, and believe we are well placed for the next chapters of our growth story.” he said.