Robert Chvátal, the CEO of Allwyn, has expressed strong support for the newly appointed Phil Walker, asserting he is the “right leader” for the company's operations in the UK, despite facing criticism from several politicians regarding Walker's previous tenure at William Hill.
During the earnings call on Thursday, following Allwyn's Q2 report, Chvátal affirmed that Walker is well-equipped to steer the company through its upcoming developmental phase, having recently completed significant transformations in both retail and digital sectors.
"We are prepared 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 successfully executing one of the industry’s largest retail and digital transitions," Chvátal stated.
He emphasized that while the task ahead is challenging, the experience gained from such a large-scale transformation will offer non-financial advantages that could benefit Allwyn's future in lottery tenders.
Walker’s appointment follows the announcement last week of Andria Vidler's departure, with Walker set to assume leadership temporarily until a permanent replacement is decided.
Critics including MPs Dawn Butler and Sir Iain Duncan Smith have voiced their concerns, sending a letter to the Gambling Commission that mentioned a sanction against Walker in 2024 for substantial failures in anti-money laundering (AML) and counter-terrorism financing at William Hill. In May of that year, Walker received a formal warning for not adequately ensuring compliance with licensing conditions across William Hill's operations.
In its recent Q2 update, Allwyn reported a modest 2% increase in UK net revenue, totaling €236 million ($274.8 million). Profitability, however, saw a significant rise due to the successful completion of the National Lottery technology transformation, with adjusted EBITDA soaring from €6 million to €23 million.
Chvátal acknowledged that the UK revenue for Allwyn's fiscal year 2026 is anticipated to fall below initial projections but expressed confidence in the market’s potential and a commitment to revitalizing growth. He pointed to rising competition from similar prize draws, remarking, “The technology transformation has established solid foundations for future growth. We have initiated innovations in both our existing Lotto business and will introduce a new game called Powerball.”
He added that the competitive environment has become more complex, stating, “The UK market has seen various lottery-like or prize draw propositions that are less regulated, which is a reality we must contend with.”
Allwyn also holds a 36.75% stake in Betano, a global betting brand that reported a 26% revenue increase during Q2 in constant currency terms. CFO Ken Morton noted that Betano's strength in Brazil, where it leads the market, sets it apart from competitors who have faced declines.
Morton remarked, “Betano is at the forefront in Brazil, a significant market, and its robust performance reflects its strong positioning.”
Chvátal pointed out the advantages of being a market leader in navigating difficult conditions, stating, "Being a market leader like Betano allows for better resilience against challenges. This has certainly been beneficial for Betano, which established its presence in Brazil early on."
Morton anticipates that Betano will convert EBITDA into net income at a similar, if not slightly improved, rate in the forthcoming quarters after experiencing a less than average Q2 performance.
