27 March 2024 , 08:45
576
0
Allwyn, the company that runs the National Lottery, has reported a drop in UK sales and earnings.
Sales in the UK fell 4% to £3.3 billion in 2023, while underlying earnings were 5% lower at £155.5 million. The group, which bought previous National Lottery operator Camelot last year, blamed "unusually unfavourable EuroMillions jackpotcycles".
It said there were only 14 draws for EuroMillions with a jackpot above 100 million euros, compared with 33 such draws in 2022. Allwyn also said its UK performance was held back by "limited product and channel developments towards the end of the previous licence".
The results come after Allwyn's recently-appointed UK boss Andria Vidler said earlier this year that plans for new draw-based games have been delayed until 2025 after its handover had been hampered by legal wrangling. The group also said delays to the new games it had hoped to introduce in 2024 would impact sales and hold back the amount of money it can give to good causes in the early part of its 10-year licence.
Allwyn took over the licence to run the National Lottery on February 1, replacing Camelot, marking the first time the lottery has changed hands since it was launched nearly 30 years ago.
Wilko announces huge change from today as it stops selling Lottery tickets
There was a big legal fight with Camelot over the Gambling Commission's decision to give the licence to Allwyn. This was finally settled in February last year when Allwyn bought Camelot. However, the two companies have continued to operate separately.
Allwyn, which is based in the Czech Republic and also runs lotteries across Europe, said its overall group performance saw "limited impact" from wider pressures on consumers spending due to high inflation. This was because "revenues remained resilient due to the low price point of our products and low average spend per customer, as well as our large number of regular players", according to Allwyn.
Its results showed that group-wide underlying earnings, excluding its Camelot acquisition, jumped 12% to 1.31 billion euros (£1.12 billion). It added that the business has "continued to perform and develop well" since the end of 2023.
Robert Chvatal, Allwyn chief executive, said: "During the year we once again saw the resilience of demand for our products, notwithstanding an inflationary backdrop in which consumer spending remained under pressure."