The gaming and lottery powerhouse, Allwyn, witnessed a substantial income leap in its fiscal year 2023, amassing a remarkable €7.88 billion ($8.53 billion). This signifies an almost twofold increase in their earnings compared to the preceding year. A considerable portion of this expansion can be linked to their purchase of Camelot UK, the entity managing the UK National Lottery, in March. Excluding the Camelot acquisition, Allwyn still achieved a commendable 6% natural revenue growth.
The Camelot agreement, concluded in March following approval from the UK Gambling Commission, involved Allwyn assuming control from the Ontario Teachers’ Pension Plan Board. Camelot UK itself experienced a positive year, with the UK National Lottery announcing a minor revenue rise, reaching £8.19 billion ($10.34 billion) for the 2022/23 timeframe.
Apart from the significant takeover, Allwyn has been actively broadening its international presence. This encompasses rebranding Camelot Illinois to Allwyn North America, indicating their aspirations within the North American market.
In addition to venturing into fresh territories such as Austria and Greece during October, Allwyn established numerous alliances over the course of the year. Significant collaborations encompass a joint effort with Vodafone for UK lottery management and a partnership with 0xCollection in Switzerland.
These favorable advancements were not unforeseen, as the company’s third-quarter outcomes displayed comparable expansion. Both overall earnings and gross gaming earnings witnessed an astounding 98% surge. Nevertheless, net earnings experienced a 1% decline after excluding profits from mergers.
## UK Market Overview
Concentrating on the UK, Allwyn declared total and gross gaming earnings of €39.3 billion. This sum, marginally under 50% of the consolidated total earnings, signifies a 4% year-over-year reduction. Net earnings and operational EBITDA followed the same pattern, diminishing by 2% and 5% correspondingly. The fourth quarter mirrored this tendency with a 2% dip in gross gaming earnings (€975.3 million) and a 5% decrease in net earnings (€199.5 million).
## Examining Q4 2023
The fourth quarter sustained the trajectory of robust, though slightly moderated, expansion. Total earnings escalated by 97% (4% excluding mergers) to attain €21.8 billion. Gross gaming earnings reflected this growth at €20.8 billion, also indicating a 97% increase. Adjusted EBITDA witnessed a 30% leap (15% excluding mergers), reaching a total of €3.885 billion for the quarter.
## Leadership Remarks
Robert Chvatal, Allwyn’s Chief Executive Officer, conveyed contentment with the outcomes: “I am delighted to report that 2023 marked another year of substantial financial and operational achievements coupled with strategic advancements… As the presented figures illustrate, encompassing the influence of our acquisition of Camelot finalized in the first quarter, total earnings expanded by 98% year-on-year.”
He further highlighted the inherent growth, stating, “Disregarding the impact of mergers, our gross earnings expanded by 6% year-on-year…”
A sincere appreciation to all of you. Your commitment and unwavering hard work have resulted in a truly exceptional year for our organization in 2023!
