Double-digit online growth pushes revenue up at Allwyn in Q1
Allwyn International reported a 6% year-on-year increase in revenue during Q1 on the back of further growth within its digital division, while earnings also edged up despite additional spending on the group’s corporate structure.
Revenue for the three months to 31 March amounted to €2.24 billion ($2.56 billion), Allwyn said in its preliminary results. This surpassed the €2.11 billion reported in the same period last year – during which Allwyn took control of the UK’s National Lottery.
On top of this, revenue from gaming activities, recorded as GGR, was 7% higher at €2.15 billion. In addition, net revenue increased 5% to €1.01 billion.
Analysing the results, Allwyn again picked out digital as a key driver of growth, continuing a trend seen in FY24. Online gross gaming revenue hiked 15% year-on-year, with this segment representing 39% of overall gross gaming revenue.
“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,” Allwyn CEO Robert Chvatal said.
“Total revenue increased 6%. This reflects growth in the digital channel, in addition to further enhancements to our proposition, as we constantly seek to elevate the player experience.”
UK revenue up 6% at Allwyn
Looking at geographical performance, Allwyn picked out several markets in which it posted growth.
Having held the National Lottery licence for over one year, the UK is now Allwyn’s primary revenue source. In Q1, UK revenue increased 6% to €1.02 billion. Allwyn said this was helped by a strong showing in the EuroMillions draws, with the game having reached a record jackpot in March.
Allwyn said that it remains committed to its ongoing transformation plans with the National Lottery. This includes upgrading legacy technology infrastructure the group said has “long constrained new product development and innovation”.
Incidentally, reports emerged last month that the Gambling Commission could take action against Allwyn over delays with this planned transformation, which are meant to include dropping ticket prices to £1. Allwyn said these upgrades will go ahead, with a total planned spend of over £350 million.
Greece and Cyprus stand out in Q1
Elsewhere, Allwyn also reported growth across other markets in Europe. Stand-out results included Greece and Cyprus, where revenue was 8% higher at €616.9 million, with increases across both online and retail.
Revenue in Austria was also up 6% year-on-year at €423.6 million. According to Allwyn, this was driven by double-digit growth in numerical lotteries and a strong showing in iGaming. Together, these offset a weaker trajectory across video lottery terminals and casinos in the country.
Looking to the Czech Republic, where Allwyn is headquartered, revenue edged up by 1% to €132.2 million, again helped by numerical lotteries. However, in Italy, revenue dipped 1% to €126.3 million.
Finally, revenue from the North America, Technology and Content segment was 2% higher at €60.4 million. This division comprises operations of the Allwyn LS Group and IWG.
Earnings increase despite restructure costs
Allwyn did not publish a full breakdown of finances for the quarter but did set out certain data for earnings during Q1.
Operating EBITDA was 1% lower year-on-year at €311.4 million. However, adjusted EBITDA increased by 1% to €362.3 million. This, Allwyn said, was despite additional costs related to changes to its corporate structure.
These changes saw Allwyn International redomiciled to Switzerland in October 2024. As a result, some costs previously incurred by parent company Allwyn AG but funded by Allwyn International are now incurred directly by Allwyn International.
The group added that its adjusted EBITDA margin remained strong at 35.9%, compared to 37.4% in 2024.
What next for Allwyn?
During his statement on Q1, Chvatal also made reference to other recent developments that will impact Allwyn moving forward.
These include the successful bid from the LottoItalia consortium to secure the Italian Lotto licence. News of this was confirmed last month, with IGT seeing off competition from both Novomatic and Flutter.
“We look forward to continuing to work together with our partners to deliver for players and all stakeholders, while also supporting responsible play,” Chvatal said.
In addition, after the end of Q1, Allwyn acquired a minority interest in Next Lotto, a licensed online reseller of draw-based games offered by state lotteries across Germany. This, Chvatal said, further expands the group’s geographic footprint.
“Overall, I am pleased with the start of the year and believe we are well-placed for the remainder of 2025,” Chvatal said. “As always, I look forward with excitement to what the future holds for Allwyn, as we continue to focus on delivering our strategy.”