National Lottery sales decline under Allwyn ownership in Czech Republic

In the first full quarter since Allwyn took over the National Lottery from Camelot, ticket sales experienced a decline of 1% compared to the same period last year. This downturn is a setback for Karel Komarek, the Czech billionaire and owner of Allwyn, who aimed to increase funding for charitable causes through the lottery. Despite the drop in ticket sales, Allwyn reported a 4% increase in revenue, reaching €1 billion, attributed to the strengthening of the sterling against the euro. However, the company's adjusted earnings saw a dramatic decline of 92%, plummeting from €50 million to just €4 million. This significant drop in earnings was largely due to an unusually high level of prize payouts during the quarter, which impacted the overall profitability of the lottery. The financial figures shared with lenders highlight the challenges Allwyn faces in stabilizing the lottery's performance. The decline in ticket sales raises concerns about the future of the National Lottery under Allwyn's management, as the company seeks to balance revenue generation with the need to provide substantial prizes to attract players. The situation reflects the competitive nature of the lottery market and the difficulties new operators may encounter when taking over established brands. As Allwyn navigates these challenges, the focus will be on how effectively the company can revitalize ticket sales and improve its financial performance while fulfilling its commitment to support good causes in the Czech Republic.