Ad
Ad
Ad

Allwyn International Q1 2022 Results and Update on Current Trading

June 15, 2022 | Financial

SAZKA Group Alerting Service (June 15, 2022)

Allwyn International a.s. (formerly SAZKA Group a.s.) (the “Company”, and, together with its subsidiaries, joint ventures and associates, the “Group” or “we”) announces its financial results for the three months to 31 March 2022 and provides an update on recent developments and current trading.

  • Consolidated gross gaming revenue of €869m, +65% YoY, reflecting a more normalised operational environment after reopening of physical retail business across our operations and continued organic growth
  • Consolidated Adjusted EBITDA margin of 50%
  • Consolidated Adjusted EBITDA of €269m
  • Continued strong growth in online sales – online channel contributed 43% of Gross gaming revenue in the Czech Republic, compared with 36% in Q1 2021
  • Continuing to deliver on our inorganic growth strategy through acquisitions and participation in tenders

Q1 2022 financial highlights
• Consolidated Gross gaming revenue (“GGR”) increased by 65% year on year to €869.3 million.
• Consolidated Adjusted EBITDA increased by 86% year on year to €268.8 million.
• Consolidated Adjusted Free cash flow was €249.8 million.

Q1 2022 pro rata financial highlights
• Pro-rata GGR increased by 34% year on year to €698.6 million.
• Pro-rata Adjusted EBITDA increased by 64% year on year to €172.2 million.
• Pro-rata Adjusted Free cash flow was €160.7 million.

Pro-rata LTM ended 31 March 2022 highlights
• Pro-rata Net debt was €1,551.9 million and pro-rata LTM Adjusted EBITDA was €700.1 million; Pro-rata Net debt / LTM Adjusted EBITDA was 2.2x.
• On a pre-IFRS 16 basis, Pro-rata Net debt / LTM Adjusted EBITDA was 2.3x and Pro-rata priority Net debt / Adjusted EBITDA was (0.5x) on 31 March 2022.

Key strategic initiatives

• In January 2022, Allwyn AG, the parent company of Allwyn International a.s., announced a proposed merger with Cohn Robbins Holdings Corp as a result of, upon closing, it shares would be listed on the New York Stock Exchange.
• In February 2022, the Group purchased the remaining minority economic interest in SAZKA Delta AIF Variable Capital Investment Company Ltd, an entity through which the Group holds part of its interest in OPAP, for consideration of €327.4 million, increasing its economic interest in OPAP from 41.2% to 48.1%.
• In March 2022, the UK Gambling Commission announced Allwyn International a.s. as its Preferred Applicant for the fourth UK National Lottery licence following a rigorous competitive tender process. Allwyn Entertainment Ltd, a 100% owned subsidiary of Allwyn International a.s., is its proposed licensee. The fourth UK National Lottery licence will run for 10 years from February 2024.

Rebranding

The legal names of the following companies were changed in connection with the introduction of our new global Group brand “Allwyn”. The ownership structure and the activities of the companies remain unchanged.

Former Name – > New Name
SAZKA Entertainment AG – > Allwyn AG
SAZKA Group a.s. – > Allwyn International a.s.
SAZKA Group CZ a.s. – > Allwyn Services Czech Republic a.s.
SAZKA Group UK Ltd – > Allwyn Services UK Ltd

Trading update and outlook
Our business continues to perform well despite weaker general consumer sentiment.

COVID-19
In Q1 2022, COVID-19-related restrictions impacted sales in some markets, though to a significantly lesser extent than restrictions in previous periods. These restrictions impacted the physical retail channel in the Greece and Cyprus operating segment, casinos in the Austria segment and certain categories of point of sales in Italy. During Q2 2022 most remaining material restrictions have been lifted.

War in Ukraine
We have not been materially impacted by the war in Ukraine. We do not have any operations in Ukraine, Russia or Belarus and our suppliers have not experienced any material disruptions.

Macroeconomic environment
Current inflation and rising energy prices have a limited impact on our cost structure with our largest cost categories linked to revenue (e.g. gaming taxes, agents’ commissions) and energy accounting for a small proportion of our costs.

Consumer sentiment
The above-mentioned macroeconomic and political uncertainties continue to have some impact on consumer sentiment in general in the countries where we operate.
However, so far the impact on consumer demand for our products has been limited, reflecting the low price point of our products and low average ticket size, as well as our large number of regular players.

This announcement has not been approved by any regulatory authority and does not represent financial statements within the meaning of applicable Czech law.

SOURCE: SAZKA Group Alerting Service.

Tags: , , , ,