Allwyn has seen half-year turnover nearly double after snapping up National Lottery operator Camelot and hailing resilient demand despite cost pressures on consumers.
The Czech company reported total revenues of £3.2billion for the six months to June 30, up from £1.6bn a year earlier.
Revenues in the second quarter jumped 115 per cent higher to £1.8bn after its performance was boosted through the takeover of Camelot UK and Camelot Lottery Solutions, which runs the Illinois Lottery, in the first quarter of 2023.
With the newly acquired firm stripped out, Allwyn said revenues rose 12 per cent in the first half to £1.8bn and were 7 per cent higher over the second quarter.
The group said consumer confidence was being affected by the cost-of-living crisis but that its business saw “only a limited impact”. It said demand remained resilient “due to the low price point of our products and low average spend per customer, as well as our large number of regular players”.
Allwyn also said its business has been shielded from much of the wider cost inflation, given that “a significant portion of our costs is directly linked to revenues and the low proportion of energy in our cost base”.
Robert Chvatal, Allwyn CEO, commented, “I am pleased to report that Allwyn delivered another quarter of strong growth, profitability and strategic progress.
“We delivered organic revenue growth across markets, and also saw a further step up in profit and free cash flow generation owing to this being the first full quarter of ownership of our recent acquisitions, Camelot UK and Allwyn LS Group (formerly Camelot LS Group).
“I am happy to report that the good performance in our existing geographies was driven primarily by strong growth in digital, where we have sustained our momentum in product development and innovation.
“Alongside this, we continue to evolve and digitise the customer proposition in physical retail, while during the quarter we once again saw resilience of demand for our products, even in an environment where consumer spending remains under pressure.
“Overall, I am very pleased with Allwyn’s continued progress and believe we are well placed for the rest of 2023 and the next chapters of our growth story.”
