Allwyn's CEO, Robert Chvátal, has expressed support for the company's new UK leader, Phil Walker, calling him the "right leader" even amidst political scrutiny regarding his past experiences at William Hill.
During Allwyn's earnings call for the second quarter, which took place on Thursday, Chvátal emphasized Walker's qualifications to steer the company through its upcoming phase after completing significant transformations in both retail and digital sectors. "We are prepared also with the new CEO, Phil Walker, who knows the UK market and the digital landscape. We believe he is the right leader for the next phase after we successfully do both the retail and digital cutover, one of the biggest in the industry," he stated.
Chvátal further noted that Allwyn's operation in the UK will yield non-financial benefits, asserting that successful transitions at such scale provide invaluable experience that could aid Allwyn in future lottery tenders.
Last week, Allwyn UK announced the exit of Andria Vidler, with Walker set to succeed her on an interim basis while a permanent replacement is sought.
The Guardian reported that MPs Dawn Butler and Sir Iain Duncan Smith recently reached out to the Gambling Commission with concerns about Walker’s appointment. They highlighted a prior sanction by the Gambling Commission that addressed "widespread and alarming" failures in anti-money laundering and counter-terrorism financing measures at William Hill in 2024. Walker had received a formal warning that May after it was determined he had not taken sufficient steps to ensure compliance with license conditions at several William Hill businesses.
In its latest Q2 results, Allwyn reported a modest 2% increase in net revenue, reaching €236 million ($274.8 million), while profitability improved significantly due to the successful completion of technology enhancements for the National Lottery. Adjusted EBITDA surged from €6 million to €23 million. However, Chvátal remarked that UK revenue for Allwyn’s fiscal year 2026 is projected to fall short of initial estimates, although he conveyed confidence in the market and a commitment to restoring growth.
He pointed out increasing competition from prize draw alternatives, stating that the technological overhaul has laid a strong foundation for future growth. Chvátal mentioned, "We need to double down on fighting because the UK market did not stand still. It is seeing a range of lottery-like propositions that are less regulated. This is not an excuse; it is simply the reality."
In Brazil, Allwyn continues to thrive with its 36.75% investment in Betano, which saw a remarkable 26% revenue growth in Q2 after adjusting for currency fluctuations. Allwyn's CFO, Ken Morton, acknowledged Betano's strong performance as a market leader in Brazil, especially as rivals have struggled. "Betano’s positioning has continued to go from strength to strength in that very large market," he noted.
Chvátal highlighted the importance of leadership in navigating challenging market conditions, stating, "Being a market leader in Brazil has many advantages and allows us to better weather headwinds. Betano was good to be there relatively early."
Morton anticipates that Betano will maintain a similar or slightly improved rate of converting EBITDA into net income in the upcoming quarters, following a relatively subdued Q2 performance.
