Allwyn International reports growth despite challenges in UK and US in Q2 2024

Jenny Ortiz September 10, 2024

SiGMA news

Allwyn International reports growth despite challenges in UK and US in Q2 2024

Allwyn International reported a strong revenue performance for the second quarter of 2024, with total revenue reaching €2.15 billion, a 5 percent increase from Q2 2023. CEO Robert Chvatal expressed satisfaction with the company’s growth, highlighting the top-line momentum across multiple geographies.

“Total revenue increased 5 percent year-on-year, with strong organic growth in Austria, the Czech Republic, and Greece and Cyprus,” he noted. A significant driver of this growth was the expansion of Allwyn’s digital channels and ongoing product innovation, which included new game launches and content.

Adjusted EBITDA declines amid UK and US struggles

Despite revenue growth, adjusted EBITDA dropped 11 percent year-on-year to €340 million, primarily due to weaker performances in the UK and US markets. Excluding the UK and Allwyn LS Group, however, adjusted EBITDA grew by 4 percent, underscoring stronger performance in other regions. The UK’s adjusted EBITDA fell sharply by 92 percent, which Allwyn attributed to “the introduction of a new incentive and profitability mechanism” linked to the UK National Lottery. This mechanism ties the company’s earnings to its contributions to good causes, resulting in narrower profit margins.

Geographic breakdown: Austria, Czech Republic, Greece, and Cyprus

Allwyn’s Austrian operations saw a strong performance, with total revenue rising 7 percent to €401 million. The Czech Republic, however, posted a modest 1 percent decline in total revenue, reaching €124.6 million. Greece and Cyprus continued to contribute significantly to the company’s overall financials, with a 7 percent revenue increase to €558.2 million, largely driven by Allwyn’s majority ownership in OPAP, Greece’s National Lottery operator. CEO Chvatal highlighted OPAP’s buyback programme, which increased Allwyn’s shareholding to 51.45 percent.

Inorganic growth and strategic investments

Allwyn’s strategic investments also played a role in its growth story. In June, the company secured a 15-year licence to operate lotteries in Cyprus, further strengthening its position in the region. Additionally, Allwyn completed a 70 percent investment in Instant Win Gaming, a leader in online instant win games, expanding its digital capabilities.

Despite the challenges in the UK and US, Allwyn remains optimistic about its future. CEO Chvatal expressed confidence in the company’s continued growth, stating, “We are well-placed for the remainder of 2024 and the next chapters of our growth story.”

Subscribe here to SiGMA’s Top 10 News countdown and SiGMA’s Weekly Newsletter to stay up to date with all the latest iGaming News, and benefit from Subscriber-Only Offers.