Kenneth Morton, Group Chief Financial Officer at Allwyn International, firmly asserts that no competitor can rival the company's history of generating cash, especially following the completion of the OPAP merger this week.
(AsiaGameHub) - The leadership of Allwyn International is convinced it has developed the most compelling investment proposition in the worldwide gambling sector, having become a publicly traded entity through its merger with OPAP.
As of market close on Tuesday, March 24, Allwyn was operating as the globe's second-biggest lotteries and gaming firm, solidifying its standing among the premier publicly listed gambling companies.
This deal will bring together Allwyn International and OPAP, the established operator of Greece's national lottery and retail betting network – representing the conclusion of a half-year strategic initiative to redefine the group's financial and corporate profile.
Generating value within a transformed Allwyn
Fundamentally, the updated Allwyn identity is characterized by its ability to generate cash, its extensive scale, and its operational consistency, all while strengthening its role as a major benefactor to charitable initiatives across its operational regions.
Nevertheless, for Group CFO, Kenneth Morton, who provided an exclusive interview to SBC News after the merger's completion, the narrative goes far beyond mere size, encompassing elements of trust, distinctiveness, and enduring value generation.
“We are not newcomers to this sector,” Morton stated, highlighting Allwyn’s long-standing collaboration with Athens-listed OPAP. “OPAP's investors are already familiar with our achievements. Overall shareholder returns have surpassed 500% since 2013.”
Kenneth Morton, Allwyn CFO – Source: Allwyn
He further noted that this strong performance stems from rigorous execution, which includes a twofold increase in OPAP’s EBITDA over the last half-decade.
Significantly, this proven history has fostered substantial investor confidence in the recently merged entity, evidenced by over 93% of OPAP shareholders maintaining their investments.
“We have generated considerable wealth for them – and that reputation is vital as we present the Allwyn narrative worldwide,” he remarked.
Reimagining the lottery concept
Morton has characterized Allwyn as a unique entity, standing apart from other publicly traded gambling firms.
Originating in the Czech Republic with SAZKA, the group has developed into what he terms a singular presence within the industry – an operator that has successfully established a novel category by expanding and updating the lottery framework across various territories.
“Our business is quite distinct,” he commented. “We have constructed something previously non-existent – a large-scale, lottery-focused platform.”
This distinctiveness stems from a blend of robust retail presence, advanced digital capabilities, proprietary technological solutions, and growing content integration. The collective goal is to broaden the appeal of lotteries within today's entertainment environment.
A core element of Allwyn’s investment argument is its capacity to provide both expansion and returns for shareholders – a equilibrium that Morton contended is unparalleled in the industry.
He added: “Since 2019, we have virtually trebled the business's size across all key indicators. Concurrently, we have produced substantial cash flow and distributed considerable dividends.”
According to Morton, this dual achievement reinforces Allwyn’s attractiveness in equity markets: “That represents a truly persuasive and appealing offer.”
During his discussion with SBC, he characterized the company as an uncommon instance of a gaming enterprise that can expand its operations while simultaneously upholding financial prudence and providing steady returns.
Diversification as a core strength
Diversification stands as another key advantage of Allwyn’s updated PLC structure, especially pertinent amidst unpredictable and fluctuating market environments.
“Among gaming stocks, we are among the most diversified,” Morton stated. “This is a significant benefit – both for mitigating risks and for future growth opportunities.”
In contrast to operators with heavy reliance on individual markets or product categories, Allwyn’s multi-market, multi-channel framework offers a more stable earnings foundation while allowing agility to pursue fresh expansion prospects.
The transformed Allwyn
Moving forward, the company's aspirations reach far beyond Europe. Although OPAP and other European assets form a solid base, Morton pinpointed North America as a crucial strategic area for the operator, in addition to developing prospects in South America.
He elaborated: “The gaming industry is seeing growing returns to scale. Competition is no longer solely against other betting providers – it's for consumers' time and finances against the broader global entertainment sector.”
Within this landscape, triumph hinges on scale, technology, content, and brand – domains where Allwyn is assured it has already forged a substantial competitive edge.
Notwithstanding the magnitude of the merger, Morton emphasized that the company's leadership perceives this transaction not as a conclusion, but as the commencement of a fresh chapter.
“This is likely the most thrilling transaction we have undertaken,” he stated. “It positions us at a truly promising juncture in the group's evolution.”
Allwyn’s attention now turns to implementing its subsequent phase of expansion.
“We have established a robust foundation,” Morton concluded. “The objective now is to elevate the business to its next stage.”
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