Alvin: European growth boosts UK National Lottery’s impact in Q2
Date: 2024-09-09 Author: Robert Beloved Categories: EVENTS
Alvin’s revenue for Q2 2024 was €2.15 billion, up 5% year-on-year and 2% above Q1 (€2.11 billion). Gross gaming revenue reached €2.06 billion, also up 5% year-on-year.
However, adjusted EBITDA declined 11% to €340 million. This was due to new terms for the UK National Lottery requiring increased charitable contributions to boost Alvin’s revenue. This mechanism was introduced on 1 February when Alvin took over the lottery. Excluding the UK and US results, EBITDA would have increased by 4%.
Despite this, CEO Robert Chvatal remains optimistic about the company’s prospects, expecting further revenue growth in 2024 and beyond.
UK National Lottery Impact
As in the first quarter, Alvin’s work with the UK National Lottery had a significant impact on results. In February, Alvin replaced the previous operator, Camelot, which had run the lottery since its launch in 1994. In the second quarter, revenue in the UK grew 4% to €1.02 billion.
However, adjusted EBITDA in the UK fell sharply by 92% to €4.2 million, due to new terms for the National Lottery, which limit the company’s profits.
Growth in the rest of Europe
Outside the UK, Alvin is showing positive results. In Greece and Cyprus, where the company operates through OPAP, revenue rose 7% to €558.2 million, while adjusted EBITDA increased 2% to €183.9 million. In Italy, revenue rose 4% to €581.8 million, while EBITDA rose 3% to €97 million.
In Austria, revenue increased 7% to €401 million, while adjusted EBITDA rose 4% to €69.6 million, driven by growth in online lotteries and success in iGaming. In the Czech Republic, where Alvin began as Sazka Group, revenue fell 1% to €124.6 million, but EBITDA rose 5%, driven by operational efficiencies.
Alwyn’s US operations
Alwyn is also actively developing its business in the US through Allwyn LS, formerly Camelot Lottery Solutions. In the second quarter, Allwyn LS revenue increased by 3% to €48.6 million, but adjusted EBITDA fell by 61% to €3.1 million due to lower incentive payments.
H1 results
For the first six months of 2024, Alwyn’s revenue was €4.26 billion, up 15% year-on-year. Excluding acquisitions in the UK and US, the increase was 5%, highlighting the company’s successful development in Europe.
Adjusted EBITDA for the first half of the year decreased by 4% to €697.8 million due to the new conditions for the National Lottery. However, excluding acquisitions, this figure increased by 4% to €672.8 million.
Completion of investment in Instant Win Gaming
Alvin also completed the acquisition of a 70% stake in online content developer Instant Win Gaming (IWG), which supplies instant lotteries to more than 25 national and regional lotteries around the world.
