New national lottery operator Allwyn sees revenue rise 80% to £1.4bn after Camelot takeover
- The Czech company said first-quarter sales grew to €1.65 billion
- Allwyn claimed to be experiencing a “limited impact” from inflationary pressures
- From February 2024, Allwyn will run the UK National Lottery for ten years
Allwyn International has reported an 80 percent increase in first-quarter revenue following its acquisition of Camelot, the long-standing operator of the UK National Lottery.
The Czech company said sales rose to €1.65 billion (£1.41 billion) in the first three months of 2023, compared to €914 million in the same period last year.
While acquisitions of Camelot UK and Camelot Lottery Solutions, which run the Illinois Lottery, accounted for the bulk of the growth, organic sales still grew 17 percent to more than €1 billion.
Turnover: Allwyn International, the future operator of the UK National Lottery, said turnover rose to €1.65 billion in the first three months of 2023
Allwyn attributed the boost to solid performance across all areas and product lines, progress in its digital channels and the absence of any impact from Covid-related restrictions.
Despite widespread cost-of-living pressures across Europe, the company claimed to be experiencing a “limited impact” from inflation due to its large number of regular players and low average spend per customer.
This contributed to a 28 percent increase in adjusted underlying profit to €346.7 million, as did minimal energy costs and the fact that a large portion of total costs are revenue-related.
Robert Chvatal, CEO of Allwyn, said: We have again seen the resilience of demand for our products, even in an environment where consumer spending remains under pressure.
“We continued to deliver strong margins and generate robust free cash flow, reflecting our favorable cost structure and focus on cost and capital efficiency.”
Allwyn will run the UK National Lottery for ten years from February 2024, following selection by the Gambling Commission.
During the initial licensing period, the group has vowed to return more than £30 billion to charity. Camelot has spent £45 billion in the years since the lottery started.
It has also promised to offer more super-national lotteries and use its partnership with Vodafone to attract younger demographics.
The company is owned by KKCG, the business empire of Czech billionaire Karel Komarek, whose interests include oil and gas, entertainment, real estate and technology, and is one of the largest lottery operators in Europe.
It planned to list on the New York Stock Exchange last year through a £7.4bn special purpose merger with Cohn Robbins Holdings, but decided not to go ahead due to “significant market volatility”.
Former Sainsbury’s boss Justin King chairs the board of Allwyn UK, while other board members include Air Miles loyalty program founder Sir Keith Mills.