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.
Q1 2022 financial highlights
Q1 2022 pro rata financial highlights
Pro-rata LTM ended 31 March 2022 highlights
Key strategic initiatives
|Former Name||New Name|
|SAZKA Entertainment AG||Allwyn AG|
|SAZKA Group a.s.||Allwyn International a.s.|
|SAZKA SAZKA Group CZ a.s||Allwyn Services Czech Republic a.s.|
|SAZKA Group UK Limited||Allwyn Services UK Ltd.|
Our business continues to perform well despite weaker general consumer sentiment.
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.
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.
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 have been limited, reflecting the low price point of our products and low average ticket size, as well as our large number of regular players.
I am pleased to report that Allwyn International has started the year strong and delivered several important strategic initiatives and another set of solid results.
The first quarter of 2022 was an exciting time for us from a strategic point of view. We have executed several initiatives that set us up well for future growth.
In January 2022, we announced a proposed merger with Cohn Robbins Holdings Corp as a result of which our parent company would become listed on the New York Stock Exchange in the coming months.
In February 2022, we acquired the interest of the remaining minority investor in SAZKA Delta, as a result of which we increased our OPAP shareholding to over 48% and finalised the simplification of the structure through which we hold our interest in our Greece and Cyprus business.
Last but certainly not least, I am absolutely thrilled that in March 2022 we were selected as the Preferred Applicant for the fourth UK National Lottery licence by the UK Gambling Commission.
Our financial performance in Q1 2022 continued to be strong. Our consolidated Gross gaming revenue increased by 65% year-on-year and our consolidated Adjusted EBITDA margin was 50%.
I am pleased that the first quarter in 2022 was mostly unimpacted by COVID-19, with only some operations in Austria, Greece and Cyprus, and Italy being subject to limited COVID-19 related restrictions, most of which have been subsequently lifted during Q2. The fully reopened physical retail channel in these markets performed well while online sales continued to be strong across geographies, with the online channel contributing a record 43% of GGR in the Czech Republic.
We note that general consumer demand has weakened in the last few months due to persisting inflationary pressures. However, our business has seen only a limited impact so far due to the low price point of our products and low average spend, as well as our large number of regular players.
Our operations have not been impacted by the war in Ukraine. However, we are deeply concerned and saddened by the situation in Ukraine. I am proud that the Group has provided donations for humanitarian aid to Ukraine and continues to support Ukrainian refugees.
I am also glad to report that OPAP has concluded the 8-year renovation project of two largest pediatric hospitals in Greece. Funding good causes and helping local communities remain core to what we do.
Overall, I am pleased with Allwyn International’s financial and strategic performance in Q1 2022 and I look forward with confidence and excitement to the next quarters.”