The 80% is more specifically 81.4% and represents the sum of €1.58bn even with the company’s[ UK results falling nearly 2% to €1.01bn.

Explaining the rapid jump in numbers, a company statement read: “In Q1 2023, we completed the acquisitions of Camelot UK, the current operator of the UK National Lottery, and Camelot LS Group, the current operator of the Illinois Lottery under a private management agreement. These acquisitions have a significant impact on consolidated metrics of the Group and comparability with previous periods.”

Most Markets Up

Most markets were up for the provider with Italy falling a scant 0.6% while Greece and Cyprus together saw a 14.6% increase to €552.9m, Austria contributing €388.4m, (+19.3%) and home base the Czech Republic producing €125.4m, an increase of 17.2%.

Allwyn CEO, Robert Chvatal commented: “I am pleased to report that Allwyn had a strong start to the year, reflecting our ongoing focus on driving organic growth as well as continued progress in our inorganic growth strategy, with the results of the first quarter including the contribution from a total of seven lottery markets. Meanwhile, we have remained focused on our responsibilities to all our stakeholders and on safer gaming.”

The chief summed up the massive growth in revenues by explaining that 17% came from pre-existing geographic markets as well as first-time contributions from the UK market. The Camelot purchase included not only Camelot UK but also the Camelot LS Group. The latter operates the massive US Illinois lottery under a private management agreement there.

He explained how existing market success was further powered by digital channels as well as physical retail sales and the falling off of some Covid-19 impacts from last year that is no longer affecting current sales.

“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 generate robust free cash flow, reflecting our favorable cost structure and focus on cost and capital efficiency. The completion of two landmark acquisitions in the first quarter underscores our continued success in executing our inorganic growth strategy. The acquisition of Camelot UK, the current operator of the UK National Lottery, supports the successful delivery of the National Lottery through 2023 and over the next decade.“

Camelot LS was owned by the Ontario Teachers’ Pension Plan Board of Canada prior to Allwyn’s acquisition. In early December 2021, the Czech gambling group then known as Sazka Entertainment began to conduct business under the corporate identity of Allwyn for all of its properties assets when named as the “preferred bidder” for the fourth UK National Lottery license.

In a short time, the former Czech Republic-based company (now headquartered in Switzerland) has been operating in new markets globally it has included the US through the Illinois lottery, its first foray into the US lottery landscape once wholly dominated by Scientific Games and GTECH/Lottomatica (now IGT via acquisition).

Chvatal explained the importance of expanding lottery operations into such markets: “<Camelot LS Group provides> interesting strategic optionality through its in-house iLottery technology.”

In financial dealings, he noted: “The continued strength of our financial performance supported our successful financing activities after the end of the quarter, with Allwyn issuing €665m and $700m long-dated bonds in a single transaction. This financing represented our first US-dollar bond issuance, further diversifying our sources of funding, as well as significantly extending our debt maturities and further simplifying our capital structure.”

In closing, Chvatal said he was very pleased with the start to 2023 and said it placed the company well for continued success throughout the rest of the year as well as for “the next chapters of our growth story.”

Source: Allwyn Entertainment reports 80 per cent jump in revenues with addition of Camelot G3 NewsWire, June 15, 2023

The post Allwyn has posted massive Q1 revenue gains based on Camelot acquisition appeared first on Keno Wizard.

Czech-based lottery group Allwyn International announced its preliminary results for the first quarter of 2023, posting a huge increase in revenue to reflect strong organic growth across all existing markets.

Driving Organic and Inorganic Growth

For the three months ended March 31, 2023, Allwyn registered total revenue of €1.65 billion ($1.78 billion), up 80% compared to the group’s Q1 2022 revenue figure. The increase Allwyn attributed mainly to the acquisitions of Camelot UK and Camelot LS Group both of which concluded during the reported quarter.

Commenting on the results, Allwyn’s chief executive officer, Robert Chvatal, was pleased to see the business perform strongly from the beginning of the year, driven by its “ongoing focus on driving organic growth” alongside progress in its inorganic growth strategy, stressing that all seven lottery markets contributed to the result.

The completion of two landmark acquisitions in the first quarter underscores our continued success in executing our inorganic growth strategy.

Robert Chvatal, CEO, Allwyn

Chvatal noted that the acquisition of Camelot UK ensured the operation of the UK National Lottery over the next decade, while Camelot LS Group opened the door to the US market.

Excluding the effect of both acquisitions, consolidated revenue was €1.07 billion ($1.16 billion), registering an increase of 17% year-over-year. Consolidated Adjusted EBITDA was €325.5 million ($351.5 million), up 20% from Q1 2022.

The increase was attributed to the further progress in digital channels and Allwyn’s customer proposition in physical retail and was supported by ongoing product and technology innovation. The result was also influenced by the negative pandemic impact in Q1 2022.

On a pro-rata basis, total revenue was €2 billion ($2.16 billion), posting an increase of 176% year-over-year, while Adjusted EBITDA posted an increase of 62% to €280.2 million ($302.6 million), highlighting further the massive impact of both acquisitions.

In fiscal 2022-23, Camelot UK experienced a remarkable year in sales and revenue growth, achieving its second-best annual profit since its launch in 1994 and surpassing the previous year’s result by almost £100 million ($126 million).

Differing Business Models, Inflation, Energy Cost

Allwyn stated that the business models of both Camelot UK and Camelot LS Group differ from those of their other existing markets making consolidated metrics incomparable directly to prior periods. Furthermore, as both acquisitions were completed during Q1 2023, future quarter comparisons will be also affected.

Another factor that influenced the results was the impact of inflationary pressures on the general consumer sentiment, albeit very limited, due to resilient revenues supported by the low price point of Allwyn’s products, low average spend per customer, and a large number of regular players.

Last, profitability was supported by the low proportion of energy in the company’s cost base while a significant portion of the cost base is directly linked to revenues.

The post Allwyn Posted Unaudited Revenue of €1.65B in Q1 2023 appeared first on Keno Wizard.

Online gaming and sports betting operator Rush Street Interactive, Inc. (RSI) published its financial report for the fourth quarter of 2022 and the full year ended December 31, 2022, posting revenue increases of 27% and 21%, respectively.

Strong Revenue Growth

RSI generated in the last business quarter of 2022 revenue of $165.5 million to contribute to a full-year 2022 revenue of $592.2 million. For comparison, in Q4 2021 the Chicago-based gaming company registered revenue of $130.6 million, while for the full year, it amounted to $488.1 million.

Commenting on the results, Richard Schwartz, chief executive officer of RSI, outlined that the strong quarter and record results for the year were driven by a growth of 95% in RSI’s Latin American and new North American markets the company had launched operations after 2020.

Net Loss, Negative Adjusted EBITDA

The company’s net loss in Q4 2022 was $31.1 million, registering a decrease of 18.4% from $38.1 million in the fourth quarter of 2021. Quarterly adjusted EBITDA was a loss of $17.3 million, down 44.6% from the adjusted EBITDA loss of $31.2 million in Q4 2021.

For the full year, net loss significantly increased to reach $134.4 million, up 88.9% from $71.1 million in the year prior. Consequently, full-year adjusted EBITDA came at negative $91.8 million to register an increase of 41% from $65.1 million in 2021.

“We expect to achieve positive Adjusted EBITDA for the second half of 2023 and continue to be selective as we prioritize investments in markets with higher returns,” Schwartz said.

2023 Revenue Guidance

RSI used the report to initiate revenue guidance for the full year 2023, expecting to achieve revenue of between $630 million and $700 million, based on certain assumptions, including professional and college sports calendars remaining intact, the company maintaining operations in all jurisdictions it operates now, and that results from new jurisdiction launches are excluded.

“Looking forward, we will continue to focus on earning and retaining customer loyalty, by treating them well, being thoughtful, developing seamless experiences and reducing friction at every possible point. We have built our proprietary platform and culture around a disciplined operating philosophy, which is reflected in our results,” Schwartz concluded in his comments.

Other Financial Highlights

RSI noted that its adjusted advertising and promotions expenses in the fourth quarter marginally dropped to $63.2 million, as compared to $64 million in the respective quarter of 2021, while for the full year, there was an increase of 16.9% to $218.4 million ($186.9 million in 2021).

The number of real-money monthly active users increased proportionally in the quarter and the year: 22% in Q4 and 29% in full-year 2022, allowing RSI to register average revenue per monthly active user of $327 in the fourth quarter and $315 during the year. The full-year result is down 9% year-over-year.  

At the end of the reported period, December 31, 2022, RSI’s cash balance stood at $180 million of unrestricted cash and cash equivalents.

The post RSI Posted Q4, Full-Year 2022 Revenue Growth, Loss Increased appeared first on Keno Wizard.