The first quarter of 2024 was an impressive one for global lottery company Allwyn.
It reported its preliminary unaudited Q1 financial results on Friday, highlighted by $2.28 billion in total revenue. That growth is up 28% year over year.
The adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) is up 3% YOY, which came in at $386.7 million for the quarter.
All seems to be coming up roses for Allwyn, which operates the Illinois online lottery in the United States.
UK, US acquisitions in 2023 paying off now
In Q1 2023, Allwyn completed the acquisition of Camelot UK and Allwyn LS Group. Camelot UK operated the UK National Lottery, and Allwyn LS Group, formerly Camelot LS Group, ran the Illinois Lottery under a private management agreement.
Allwyn recently secured a new 10-year license to operate the UK Lottery, a big factor in its Q1 performance.
Allwyn CEO Robert Chvatal focused on that as part of the company’s financial release:
“I am pleased to report that 2024 has started well, with solid operational and financial performance in the first quarter, supported by our ongoing focus on our growth strategies. Q1 also included a key milestone in Allwyn’s history, with our successful start of operation of the UK National Lottery under a new 10-year license. This represented the coming to fruition of many years of dedication by a team from across our geographies, and we are excited to have already started work on transforming The UK National Lottery for the benefit of all stakeholders.”
According to the financial report, Allwyn LS Group had $55.2 million in net revenue for Allwyn’s global company in Q1.
That expands recent reports from the Illinois Lottery that it’s on pace for a record fiscal year of sales. Illinois has $3.28 billion in sales through 10 months of FY24, up 6.1% year over year. The iLottery sales for the state are up 30% at $559 million.
Allwyn looking to grow in North America
Allwyn LS Group, also known as Allwyn North America, already operates the Illinois Lottery.
It also has a partnership with the Arkansas Lottery to enhance its operations.
In February, Allwyn announced an agreement to acquire 70% ownership interest in Instant Win Gaming (IWG). IWG supplies online instant games to lotteries in more than 25 countries around the globe, including a strong North American presence.
The transaction is anticipated to close in the second half of 2024.
Allwyn has been providing technology and products for lotteries around the US, too.
The company keeps getting its foot further and further in the US door. The success of the Illinois Lottery could lead to an opportunity with other states when their respective contracts run out.
Photo by Talaj via Shutterstock
Graphic from Allwyn
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