Double-digit online growth pushes revenue up at Allwyn in Q1
Allwyn International has reported a robust start to 2025, showcasing a 6% year-on-year revenue increase for Q1, propelled by significant advancements in its digital division. This quarterly revenue reached €2.24 billion ($2.56 billion), surpassing the €2.11 billion recorded during the same period last year, a time when Allwyn took control of the UK’s National Lottery.
Strong Performance Metrics
The overall gaming activities registered a gross gaming revenue (GGR) of €2.15 billion, indicating a solid 7% growth. Net revenue saw a 5% increase, amounting to €1.01 billion. This growth underscores the company’s strategic focus on expanding its digital offerings, which contributed a remarkable 15% increase in online GGR, now comprising 39% of the total GGR.
Robert Chvatal, CEO of Allwyn, expressed optimism:
“I am very pleased to report a good start to 2025, with the continued successful execution of our growth strategies sustaining the positive momentum from our record performance in 2024.”
UK Market Overview
In the UK, where Allwyn holds the National Lottery license, revenue increased by 6% to €1.02 billion. This growth was bolstered by record jackpots in EuroMillions draws. Allwyn is steadfast in its commitment to transforming the National Lottery, including its plans to upgrade legacy technology infrastructure, which has historically limited product innovation.
However, the Gambling Commission has raised concerns about potential delays in these transformation efforts, particularly regarding the introduction of lower ticket prices set to be reduced to £1. Allwyn maintains that these improvements will be implemented, with over €350 million earmarked for this initiative.
European Market Highlights
Allwyn’s performance was notably strong in Greece and Cyprus, where revenue surged by 8% to €616.9 million, driven by both online and retail channels. Austria also showcased growth, with revenue increasing 6% to €423.6 million, attributed to strong performance in numerical lotteries and iGaming, which successfully offset declines in video lottery terminals and casinos. Conversely, the Czech Republic and Italy saw modest increases and slight declines, respectively, with revenues of €132.2 million and €126.3 million.
Earnings Amid Restructuring
While Allwyn did not provide a detailed financial breakdown for Q1, they highlighted key earnings metrics. Operating EBITDA slightly dipped by 1% year-on-year to €311.4 million, yet adjusted EBITDA rose by 1% to €362.3 million. This growth occurred amid restructuring efforts, including the redomiciling of Allwyn International to Switzerland in October 2024, changing how costs are allocated within the organization. The adjusted EBITDA margin stood at a robust 35.9%, down from 37.4% the previous year but still significantly strong.
Future Directions for Allwyn
Looking ahead, CEO Chvatal mentioned critical developments poised to shape Allwyn’s trajectory. This includes LottoItalia’s successful bid for the Italian Lotto license, enhancing the company’s competitive standing in the region. Additionally, following Q1, Allwyn acquired a minority stake in Next Lotto, a licensed online reseller in Germany, broadening its geographical reach.
"Overall, I am pleased with the start of the year and believe we are well-placed for the remainder of 2025," Chvatal noted, emphasizing the ongoing strategy to enhance player engagement and uphold responsible gaming practices.
As Allwyn moves forward, its focus on innovation, strategic partnerships, and market expansion will undoubtedly play crucial roles in sustaining its growth momentum in the competitive gambling landscape.
