Allwyn CEO Robert Chvátal has affirmed his confidence in Phil Walker, the newly appointed head of the company’s UK operations, despite some political pushback regarding Walker's prior tenure at William Hill. Speaking during Allwyn's earnings call following the second quarter results, Chvátal stated that Walker's experience makes him well-suited to lead the company through a critical next phase after completing a significant transformation of both its retail and digital platforms.
"We are prepared, along with our new CEO Phil Walker, who understands the UK market and is knowledgeable about the digital landscape. We believe he is the right leader for this next phase, following the successful transition in retail and digital—one of the largest in our industry," he said.
His remarks came on the heels of a management change where Walker is set to replace Andria Vidler, who announced her departure last week until a permanent successor is appointed.
Criticism arose from Members of Parliament, including Dawn Butler and Sir Iain Duncan Smith, who expressed their concerns in a letter to the Gambling Commission. They referenced a past sanction issued to Walker regarding serious shortcomings in anti-money laundering and counter-terrorism financing regulations while at William Hill in 2024. The Gambling Commission had warned him in May that he had not taken adequate measures to ensure compliance across several of William Hill's businesses.
In its Q2 update, Allwyn reported mixed performance in the UK. Net revenue experienced modest growth of just 2%, reaching €236 million ($274.8 million), but profitability was boosted by the completion of the technology overhaul of the National Lottery, with adjusted EBITDA soaring from €6 million to €23 million. While Chvátal indicated that the UK revenue for Allwyn's fiscal year 26 might not meet earlier projections, he expressed confidence in the market's potential and the company's commitment to driving growth.
He also pointed out increased competition from newer prize draw models, stating, "Our tech transformation has laid solid foundations for future growth. We have started to innovate both the existing Lotto business and introduce a new game called Powerball. One phase is complete, but we need to intensify our efforts because the UK market is not stagnant. It is witnessing a variety of less regulated lottery-like offerings. This is simply the current reality we must address."
Chvátal highlighted Allwyn’s 36.75% stake in Betano, a global betting brand that reported a 26% revenue increase in Q2 on a constant currency basis. Allwyn's CFO, Ken Morton, noted that Betano's robust performance underlined its leadership position in Brazil, where competitors have struggled.
"As you know, Betano is the leading brand in Brazil, and it’s a substantial market," Morton commented. "The strength seen in Q2 reflects their dominant position not only in Brazil but also in other international markets."
Chvátal emphasized the benefits of maintaining market leadership during challenging economic times, stating, "Betano’s early establishment in Brazil has enabled it to better navigate market challenges. Being a leader allows you to maintain your position more effectively."
Morton anticipates that Betano will convert EBITDA into net income at a rate similar to or slightly higher than before in the coming quarters, following a relatively slow Q2.
