Sales at the National Lottery have declined under its new Czech operator Allwyn International, with delays to new games and technological implementations weighing heavily on performance during the crucial transition period.
The organisation, which assumed control of the decade-long lottery licence on 1 February, reported a 1 per cent drop in ticket sales on a constant currency basis for the quarter ending September. The downturn was particularly pronounced in instant-win lottery games, reflecting what the company described as “limited product and channel developments” in the early stages of the new licence.
The implementation of new draw-based games faced significant setbacks following a protracted legal battle. The Gambling Commission’s decision to award the licence to Allwyn, owned by Czech billionaire Karel Komarek, sparked legal challenges from unsuccessful bidders, most notably former operator Camelot, which had managed the lottery since its 1994 launch.
UK division revenues reached €980.9 million during the quarter, marking a 3 per cent year-on-year increase. However, adjusted profits plummeted by 84 per cent to €7 million, which the company attributed to a new incentive and profitability mechanism introduced with the licence transition.
The broader Allwyn group, which operates lotteries across Europe, demonstrated more robust performance with adjusted profits rising 12 per cent to €410.8 million and total revenues increasing 7 per cent to €2.14 billion. The company noted that consumer demand remained strong despite general economic headwinds, citing the affordable nature of their products and stable customer base as key factors.
Robert Chvátal, Allwyn’s chief executive, highlighted the company’s exceptional performance in Greece and Cyprus, where adjusted profits surged 26 per cent to €213.4 million, offering a bright spot in an otherwise challenging period for the UK operations.
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