Allwyn has provided a comprehensive trading update for the first quarter of 2024, alongside the announcement of a USD-denominated Term Loan B offering amounting to $450 million by Allwyn Entertainment Financing (US). This strategic move underscores Allwyn’s robust financial health and growth trajectory.
Allwyn Reports Strong First Quarter 2024 Performance
Impressive Revenue Growth
First Quarter Revenue Performance
Allwyn’s revenue for the first quarter of 2024 is anticipated to be between €2bn ($2.17bn) and €2.05bn, showcasing a significant increase from the €1.59bn recorded in the same period last year. This impressive growth reflects strong performances across most of Allwyn’s markets.
UK Market Contribution
A notable contribution to this revenue surge comes from the UK segment, where Allwyn commenced its lottery licence in February. The UK market has shown a full quarter of strong performance, contributing significantly to the overall revenue increase.
Market-Specific Growth
- Austria: The iGaming Gross Gaming Revenue (GGR) exhibited a strong performance, bolstering Allwyn’s overall revenue.
- Czech Republic: The market witnessed double-digit percentage growth in GGR, further enhancing Allwyn’s financial results.
Financial Metrics and Investments
Adjusted EBITDA
Allwyn expects its Adjusted EBITDA for Q1 2024 to reach between €355m and €365m, up from €346.7m in the first quarter of the previous year. This increase highlights the company’s ability to efficiently manage its operations and costs while driving revenue growth.
CAPEX Increase
Capital Expenditure (CAPEX) is projected to see a substantial year-on-year increase of 83.7%, reaching €45m. This investment underscores Allwyn’s commitment to enhancing its infrastructure and expanding its market presence.
Leadership Perspective
CEO Robert Chvatal’s Insights
Robert Chvatal, Allwyn’s CEO, provided an optimistic outlook for 2024, noting, “2024 has started well, with trading broadly in line with our expectations at the start of the year, reflecting good operational and financial performance and our ongoing focus on the delivery of our growth strategies.”
He further emphasized the company’s momentum, stating, “Solid momentum in GGR growth continued in the first quarter, during which Allwyn successfully started the next 10-year licence period of the UK National Lottery, while we have delivered further progress in Adjusted EBITDA.”
Chvatal concluded with confidence in Allwyn’s future, “Allwyn remains well positioned for 2024 and for the next chapters of its growth story.”
Strategic Financial Moves
Term Loan B Offering
Allwyn Entertainment Financing (US) has announced the launch of a USD-denominated Term Loan B offering, amounting to $450 million. This financial maneuver is aimed at supporting Allwyn’s strategic initiatives and growth plans, providing the necessary capital to fuel further expansion and operational excellence.
Market and Operational Highlights
UK Lottery Licence
The commencement of Allwyn’s 10-year UK National Lottery licence marks a significant milestone. This achievement not only contributes to the revenue growth but also solidifies Allwyn’s position in the competitive UK market.
Expansion and Innovation
Allwyn’s continued investment in technology and market expansion reflects its strategy to stay ahead in the dynamic gaming industry. The increase in CAPEX demonstrates a commitment to innovation and infrastructure improvement, ensuring that Allwyn remains a leader in its field.
Future Outlook
Sustained Growth Trajectory
Allwyn’s robust performance in the first quarter of 2024 sets a promising tone for the remainder of the year. The combination of strong revenue growth, increased EBITDA, and significant investments positions the company well for sustained success.
Strategic Focus Areas
Moving forward, Allwyn will continue to focus on expanding its market presence, enhancing its technological capabilities, and optimizing its operational efficiencies. The company’s strategic initiatives are designed to drive long-term growth and shareholder value.
Conclusion: Update and Financial Announcements
Allwyn’s trading update and financial announcements for the first quarter of 2024 highlight a period of significant growth and strategic progress. With a strong performance across key markets, increased EBITDA, and substantial investments in future growth, Allwyn is poised for continued success.
FAQs: Allwyn’s First Quarter 2024 Trading Update and Term Loan B Offering
1. What is the key highlight of Allwyn’s first quarter 2024 trading update?
Allwyn reported a significant revenue increase, with expected earnings between €2bn ($2.17bn) and €2.05bn for Q1 2024, up from €1.59bn in the same period last year. This growth reflects strong performances across most of Allwyn’s markets.
2. What is the purpose of the $450 million Term Loan B offering?
The USD-denominated Term Loan B offering, amounting to $450 million, by Allwyn Entertainment Financing (US) is intended to support Allwyn’s strategic initiatives and growth plans, providing necessary capital for expansion and operational improvements.
3. How did the UK market contribute to Allwyn’s revenue growth?
The UK market contributed significantly to Allwyn’s revenue growth, following the commencement of its lottery licence in February 2024. This marks a full quarter of contribution from the UK segment.
4. What are the specific market performances highlighted in the update?
5. What are the expected figures for Adjusted EBITDA and CAPEX for Q1 2024?
Adjusted EBITDA is expected to be between €355m and €365m, up from €346.7m in Q1 2023. CAPEX is projected to increase by 83.7% year-on-year, reaching €45m.
6. What did Allwyn’s CEO Robert Chvatal say about the company’s performance and outlook?
Robert Chvatal stated that 2024 started well, with trading in line with expectations and reflecting good operational and financial performance. He highlighted solid momentum in GGR growth and progress in Adjusted EBITDA, expressing confidence in Allwyn’s positioning for 2024 and future growth.
7. What strategic financial move did Allwyn announce?
Allwyn announced the launch of a USD-denominated Term Loan B offering worth $450 million through Allwyn Entertainment Financing (US), aimed at supporting the company’s growth and strategic initiatives.
8. What are Allwyn’s plans for the UK National Lottery?
Allwyn successfully started the next 10-year licence period for the UK National Lottery, marking a significant milestone and contributing to the company’s revenue and market presence.
9. How is Allwyn investing in its future growth?
Allwyn is increasing its CAPEX by 83.7% year-on-year, reaching €45m. This investment is aimed at enhancing its infrastructure and expanding its market presence, reflecting a commitment to innovation and growth.
10. What are Allwyn’s strategic focus areas for sustained growth?
Allwyn will continue to focus on expanding its market presence, enhancing technological capabilities, and optimizing operational efficiencies. These strategic initiatives are designed to drive long-term growth and shareholder value.
