Allwyn barely feels impact of inflationary pressures as Q2 NGR climbs 24% to €551m
Allwyn has reported a 24% year-on-year rise in net gaming revenue to €550.9m for Q2 2022.
Gross gaming revenue for the period came in at €901.7m, up 23% annually, driven by a “more normalised operational environment” in certain markets after its physical retail business was able to fully reopen after last year’s Covid-19 closures.
Adjusted EBITDA for Q2 rose by 17% to €277.1m on an adjusted EBITDA margin of 50%, albeit down three percentage points on the prior corresponding period.
The growth was also attributed to continued strong performance in online sales. For example, digital contributed 44% of GGR from the Czech Republic in Q2, compared to 38% last year.
“We see the shift to online as an unprecedented opportunity to grow revenues through upselling and cross selling, at the same time as improving our profitability and as an enabler of safer gaming,” said Allwyn CEO Robert Chvatal.
Touching on the macroeconomic environment, Allwyn said the business had only witnessed a limited impact of changing consumer sentiment due to inflationary pressures and the war in Ukraine, primarily due to the low price point of its lottery products and low average spend per customer.
During the reporting period, Allwyn reached an agreement with OPAP to acquire a 36.75% stake in Greek operator Kaizen Gaming, which operates the Stoiximan brand domestically and the Betano brand abroad.
Closing of the transaction is expected in Q4 following regulatory approval.
Chvatal said: “Kaizen is a fast-growing online sports betting and iGaming operator using proprietary gaming technology, founded by the same team that founded Stoiximan.
“The company operates under the Betano brand and is present in seven markets, with a particularly strong presence in Romania and Portugal and a rapidly growing business in Brazil.
“I have great admiration for what the team has achieved at Stoiximan and am excited about the future of Betano,” he added.
Allwyn has also been selected by the Gambling Commission as the preferred applicant to run the UK’s National Lottery competition from 2024, although incumbent Camelot has launched a court appeal against the award, which will be heard in September.
Allwyn CEO Robert Chvatal: “I have great admiration for what the team has achieved at Stoiximan and am excited about the future of Betano.”
After the end of the reporting period, Allwyn said the business has continued to perform well and broadly inline with expectations despite weaker general consumer sentiment.
As a result, the company expects to report full-year 2022 adjusted EBITDA of between €740m and €760m.
Allwyn is expected to go public in September following the closure of its business combination with the Cohn Robbins Holdings Corp SPAC.
The combined entity will then be listed on the New York Nasdaq with its class B ordinary shares and warrants under the ticker symbols ALWN and ALWN.WS.