Allwyn has published a Q1 trading update, outlining certain preliminary figures. The announcement coincided with the launch of an offering of a USD-denominated Term Loan B in the principal amount of $450 million.
The current update came ahead of the announcement of the company’s unaudited Q1 results which is set to take place on June 7. While the full financial results for the period are not yet available, the update reflected the company’s expectations for certain metrics.
Allwyn’s update suggested strong GGR growth to €2 billion for Q1 thanks to momentum across multiple markets, such as Austria, the United Kingdom and the Czech Republic. Adjusted EBITDA growth was €355-365 million in Q1, the company added.
Despite reporting a stable margin, adjusted EBITDA growth was partially offset by higher marketing costs, Allwyn noted.
CAPEX stood at €45 million, representing a significant increase from €24.5 million in Q1 2023. Net debt, including leases, stood at €3.05-3.15 billion as of March 31.
As for the loan, Allwyn explained that the offering will be used to redeem in full the €400 million in aggregate principal amount outstanding under the Floating Rate Notes due 2028 issued by Allwyn Entertainment Financing. A significant portion of the proceeds will be swapped to floating rate EUR.
The Company Believes It Is in a Good Spot
Robert Chvatal, Allwyn’s chief executive officer, said that the preliminary results reflect a strong start to 2024. He noted that trading remains in line with the company’s expectations, showcasing good operational performance and continued focus on Allwyn’s growth strategy.
Solid momentum in GGR growth continued in the first quarter, during which Allwyn successfully started the next 10-year license period of the UK National Lottery, while we have delivered further progress in Adjusted EBITDA. Allwyn remains well-positioned for 2024 and for the next chapters of its growth story.
Robert Chvatal, CEO, Allwyn
Allwyn took over the UK National Lottery recently and expected a short-term underperformance during the transition period.
In Q1, Allwyn also signed an agreement to acquire a majority stake in Instant Win Gaming, a company that reported EBITDA of £18.2 million for the financial year ended April 30, 2023.
Additionally, Allwyn increased the size of its syndicated bank loan with accordion facilities of €500.0 million, due in 2030. The company also canceled £188.8 million of undrawn commitments under a £380.0 million multi-purpose facility under the syndicated bank loan.
In February, Allwyn provided a loan of €250 million to its parent company for shareholder distribution. The company provided another loan of €50 million to its parent company in April.
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