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Allwyn International Management’s Discussion and Analysis of Financial Condition and Results of Operations for the Six Months Ended 30 June 2022

September 14, 2022 | Financial

Report for the six months ended 30 June 2022

(September 12, 2022) –The financial and operating information contained in this “Management’s discussion and analysis of financial condition and results of operations” (“MD&A”) comprises information of Allwyn International a.s. (formerly SAZKA Group a.s.) (the “Company” and, together with its subsidiaries, joint ventures, and associates, the “Group”, “Allwyn” or “we”).

You should read the MD&A together with our unaudited condensed consolidated interim financial statements for the six months ended 30 June 2022. The condensed consolidated interim financial statements have been prepared in accordance with International Accounting Standard 34 “Interim Financial Reporting”. The condensed consolidated interim financial statements should be read together with the audited consolidated financial statements for the year ended 31 December 2021 prepared in accordance with International Financial Reporting Standards as adopted by the European Union as well as with the condensed consolidated interim financial statements for three months ended 31 March 2022.

This MD&A contains certain forward-looking statements, which are based on assumptions about our future business. Our actual results could differ materially from those contained in forward-looking statements as a result of many factors, including, but not limited to, those described under “Forward-Looking Statements”.

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

1.   Significant transactions and developments during the six months ended 30 June 202

1.1          Financing

Allwyn International financing arrangements

In February 2022, the Company issued €200.0 million in aggregate principal amount of additional senior secured notes due 2027 at an issue price of 99.0% bearing fixed interest of 3.88% and the Group issued €400.0 million in aggregate principal amount of senior secured floating rate notes due 2028 (issued by Allwyn Entertainment Financing (UK) plc) at an issue price of 99.5% with a margin of 4.13%.

In March 2022, the Company’s subsidiary SAZKA Group Financing a.s. repaid a bond in the nominal amount of €200.0 million due in December 2022.

In March 2022, the Company’s subsidiary SAZKA Group Financing (Czech Republic) a.s. prepaid €57.1 million under its syndicated loan facility. In June 2022, SAZKA Group Financing (Czech Republic) a.s. signed an amendment to the syndicated loan facility. As a result of the repayment and the amendment, the principal of the bullet tranche increased to €270.0 million and the revolving credit facility increased to €243.2 million. As of 30 June 2022, the revolving credit facility of €243.2 million was entirely undrawn.

 

 

CASAG financing arrangements

On 30 June 2022, Casinos Austria AG made a prepayment of €40.7 million of its syndicated loan.

OPAP financing arrangements

In January 2022, OPAP repaid a €100.0 million revolving credit facility. The revolving credit facility remains

available.

In March 2022, a subsidiary of OPAP repaid a €10.0 million revolving credit facility. The revolving credit facility

remains available.

In March 2022, OPAP made an early repayment of a €100.0 million bank loan that had an original maturity

in November 2023.

In April 2022, OPAP extended a €100.0 million revolving credit facility maturing in May 2022 to May 2023.

The revolving credit facility remains undrawn.

In May 2022, OPAP signed a €250.0 million forward loan agreement with a term of 3 years, starting in March 2023 and maturing in March 2026. The new loan agreement extends an existing €250.0 million loan maturing in March 2023 for 3 additional years.

 

 

1.2          Acquisitions

In Q1 2022, the Company increased its direct shareholding in OPAP by 0.91% through market purchases. Total

consideration paid was €42.0 million.

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.

As a result of these transactions, the Group’s effective interest in OPAP increased by 7.76% from 40.37% to 48.13% at the end of Q1 2022 and the Group’s effective interest become equal to its ownership interest.

In Q2 2022, the Company increased its direct shareholding in OPAP by 0.62% through market purchases. The total consideration paid was €30.6 million. As a result of this transaction, the Group’s effective interest in OPAP increased by 0.62% from 48.13% to 48.75% at the end of Q2 2022.

CLICK HERE to download the Q2 2022 Allwyn International report

SOURCE: Allwyn International.

 

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