Allwyn’s revenue surges 80% after buying National Lottery operator Camelot
New National lottery operator Allwyn sees revenues surge 80% to £1.4bn following takeover of Camelot
- The Czech-owned company said its first-quarter revenue grew to €1.65bn
- Allwyn claimed to experience a ‘limited impact’ from inflationary pressures
- From February 2024, Allwyn will run the UK’s National Lottery for a decade
Allwyn International has reported an 80 per cent jump in first-quarter turnover after acquiring Camelot, the longtime operator of the UK’s National Lottery.
The Czech-owned company said its revenue rose to €1.65billion (£1.41billion) in the first three months of 2023, compared to €914million in the equivalent period last year.
Though acquisitions of Camelot UK and Camelot Lottery Solutions, which runs the Illinois Lottery, provided the overwhelming bulk of growth, organic sales still expanded by 17 per cent to over €1billion.
Turnover: Allwyn International, the future operator of the UK’s National Lottery, said its revenue rose to €1.65billion in the first three months of 2023
Allwyn credited the boost to solid performances across all territories and product lines, progress in its digital channels, and the lack of any impact from Covid-related restrictions.
Despite widespread cost-of-living pressures across Europe, the firm claimed to experience a ‘limited impact’ from inflation due to its large number of regular players and low average spend per customer.
This helped boost adjusted underlying earnings by 28 per cent to €346.7million, as did minimal energy costs and the fact that a major portion of its total costs are linked to revenues.
Robert Chvatal, Allwyn’s chief executive, said: We once again saw the resilience of demand for our products, even in an environment where consumer spending remains under pressure.
‘We continued to deliver strong margins and to generate robust free cash flow, reflecting our favourable cost structure and focus on cost and capital efficiency.’
Allwyn will begin running the UK’s National Lottery for a decade from February 2024 after selection by the Gambling Commission.
During its first licence term, the group has vowed to return more than £30billion to good causes. Camelot gave out £45billion in the years since the lottery was started.
It has also promised to offer more super-national lotteries and use its tie-up with Vodafone to try and attract younger demographics.
The company is owned by KKCG, the business empire of Czech billionaire Karel Komarek, whose interests cover oil and gas, entertainment, property and technology, and is one of the largest lottery operators in Europe.
It planned to list on the New York Stock Exchange last year via a £7.4billion special purpose acquisition merger with Cohn Robbins Holdings but decided not to go ahead due to ‘significant market volatility.’
Former Sainsbury’s boss Justin King chairs Allwyn UK’s board of directors, while other board members include Air Miles loyalty programmes founder Sir Keith Mills.