Allwyn’s online gross gaming revenue rose by 15% in Q1, marking a major jump in digital performance. The company posted a 6% year-on-year increase in total revenue, supported by growth in the digital segment, and even saw earnings climb despite extra corporate structure costs. For the period ending 31 March, revenue reached €2.24 billion ($2.56 billion), according to Allwyn’s early results, above the €2.11 billion counted a year ago, when they took over the UK’s National Lottery operations.

Gross gaming revenue (GGR) from gaming activities alone climbed 7%, reaching €2.15 billion. Net revenue also moved up 5%, which brought it to €1.01 billion this quarter. Reviewing these figures, Allwyn again highlighted the digital business as a primary reason for growth, a trend that followed what was seen in FY24 before. Year over year, online gross gaming revenue jumped by 15%, now representing 39% of Allwyn’s overall gross gaming revenue.

Allwyn CEO Robert Chvatal shared his satisfaction with 2025’s beginning, stating the ongoing implementation of growth strategies has kept momentum from the record year in 2024. He said that a 6% boost in total revenue reflects digital channel improvement, plus enhancements meant to give players a better experience. When examining by region, Allwyn found increases in several markets throughout Q1.

Allwyn Reports Strong Q1 Growth Led by UK National Lottery and European Markets

Holding the National Lottery licence for over a year, the UK now stands as Allwyn’s top earner; revenue there climbed 6% to €1.02 billion, greatly helped by EuroMillions reaching a record jackpot in March. They confirmed commitment to transforming the National Lottery, which involves major upgrades to old technology infrastructure that, as the group explained, had “long held back new product creation and innovation.”

In related news last month, reports appeared that the UK Gambling Commission might step in because of delays to this transformation, which is supposed to lower ticket costs to £1. Even so, Allwyn insisted these updates will go on as planned, with investment for this overhaul expected to top €350 million. Elsewhere, other European markets performed positively for Allwyn in Q1. There were standout results for Greece and Cyprus, where revenues rose 8% to €616.9 million, thanks to gains in both online and retail channels.

Austria also had a 6% higher revenue year-on-year, making €423.6 million; here, strong numerical lottery growth and iGaming strength made up for softer video lottery terminal and casino business. In its home country, the Czech Republic, revenue inched up 1% to €132.2 million, again with numerical lotteries supporting the result. However, Allwyn saw revenue dip by 1% in Italy, reaching only €126.3 million in that quarter. North America, Technology and Content delivered 2% higher revenue at €60.4 million, with this figure including the work of Allwyn LS Group and IWG.

Allwyn Maintains Earnings Growth Amid Restructuring and Strategic Expansion

Earnings went up even with restructuring expenses included. Not all financial details for Q1 were published, but key earnings data were disclosed. Operating EBITDA fell by 1% to €311.4 million, though adjusted EBITDA grew 1%, now at €362.3 million, even as extra corporate structure costs hit. These extra costs became relevant after Allwyn International moved its legal base to Switzerland in October 2024, which means some expenses previously paid by Allwyn AG shifted to Allwyn International.

The group said their adjusted EBITDA margin held firm at 35.9%, compared to 37.4% for 2024. In his Q1 message, Chvatal covered other changes affecting Allwyn’s future strategy. Among them: the LottoItalia partnership secured the licence to run the Italian Lotto, as IGT beat Novomatic and Flutter for the win, which was confirmed just last month. Chvatal noted the team will keep working with partners to benefit players and stakeholders, while promoting responsible gaming.

Another update after Q1 — Allwyn purchased a minority stake in Next Lotto, a licensed online partner that sells draw-based games for German state lotteries. Chvatal explained that this helps boost their presence in more countries. He summed up by saying he feels positive about 2025’s start and thinks Allwyn is in a good position for the coming months; he added that he remains excited for Allwyn’s next phase, still focused on executing the established strategy.