Lottery Giant Eyes Expansion in Italy and Germany While Maintaining Growth Trajectory
Leading European lottery operator Allwyn has kicked off 2025 with a strong performance, reporting a 6% year-on-year increase in total revenue for the first quarter. The company, known for its expansive portfolio across Europe, continues to deliver consistent growth while pursuing new opportunities in Italy and Germany.
Strong Financials with Strategic Investments
In its preliminary unaudited financial results for Q1 2025, Allwyn announced total revenue of €2.24 billion ($2.44 billion), up from the same period in 2024. Gross gaming revenue (GGR) rose even more impressively by 7%, reaching €2.15 billion.
Adjusted EBITDA stood at €360 million, marking a modest 1% increase. However, the adjusted EBITDA margin dipped to 35.9% from 37.4%, attributed to shifts in operating costs and recent capital structure changes. Capital expenditure also rose, hitting €53 million for the quarter—an 18% increase year-on-year, underscoring continued investment in infrastructure and growth initiatives.
Despite the rising costs, Allwyn maintained a healthy financial position with a net debt to adjusted EBITDA ratio of 2.0x, and adjusted free cash flow of €310 million, slightly down by 1% compared to Q1 2024.
Expansion Moves: Italy and Germany in Focus
Beyond the numbers, Q1 2025 was notable for Allwyn’s strategic moves in the European lottery landscape. In April—shortly after the quarter ended—the LottoItalia consortium, which includes Allwyn, was proposed as the operator for the next nine-year Italian Lotto licence. Securing this deal would further cement Allwyn’s influence in one of Europe’s largest lottery markets.
Additionally, Allwyn acquired a minority stake in Germany’s Next Lotto, an online lottery reseller. This investment signals Allwyn’s interest in deepening its footprint in the growing digital lottery segment, aligning with its strategy of expanding digital channels and improving player engagement.
Big Wins and Big Payouts
The quarter also featured significant lottery payouts, including a €250 million EuroMillions jackpot in Austria and Greece. While such winnings affect short-term margins, they boost visibility and player interest, contributing to long-term loyalty and participation.
CEO Outlook: Positive Momentum Continues
Allwyn CEO Robert Chvatal expressed confidence in the company’s direction. “I am very pleased to report a good start to 2025,” he said. “Our growth strategy continues to bear fruit, driven by digital innovation and an ever-improving player proposition.”
Chvatal reiterated the group’s commitment to responsible gaming and emphasized partnerships as a key component of Allwyn’s success.
Looking Ahead
Allwyn’s Q1 momentum builds on a record-setting 2024, where the company posted €8.8 billion in annual revenue, driven largely by growth in Austria, Greece, and Cyprus. With strong fundamentals, active expansion plans, and a focus on digital transformation, Allwyn is positioning itself for another strong year in 2025—balancing financial performance with long-term strategic development.
