Allwyn's CEO, Robert Chvátal, has expressed strong support for Phil Walker, the newly appointed leader of the company's UK operations, despite concerns raised by some politicians regarding Walker's past at William Hill. During Allwyn's earnings call for the second quarter, Chvátal emphasized Walker's experience and suitability for steering the business through its next stages, particularly following the completion of a significant retail and digital transformation.
Chvátal remarked, "We are prepared also with the new CEO, Phil Walker, who knows the UK market, who knows the digital landscape, who we believe 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 acknowledged the complexities involved in this transition but also highlighted the non-financial benefits that could arise from Allwyn’s successes in the UK lottery sector, stating, "If we crack things on such a scale in transition, there is not such experience in transition. So, it should be beneficial for Allwyn’s future lottery tenders."
Walker’s appointment follows the recent departure of Andria Vidler, and he is expected to step into the role shortly until a permanent replacement is finalized. This week, The Guardian revealed that Members of Parliament Dawn Butler and Sir Iain Duncan Smith have voiced concerns over Walker’s hire in a letter to the Gambling Commission. The letter pointed to a past sanction issued to Walker due to serious failures in anti-money laundering and counter-terrorism financing at William Hill in 2024. Walker received a formal warning in May that year for not ensuring compliance among various William Hill businesses with licensing conditions.
In Allwyn's latest financial update, UK revenue reflected mixed results. While net revenue saw a slight increase of 2% to €236 million ($274.8 million), the company reported a notable rise in profitability, with adjusted EBITDA jumping from €6 million to €23 million, thanks to the completed technology transformation for the National Lottery. Chvátal, however, did indicate that Allwyn’s forecast for FY 26 in the UK may not meet initial expectations, though he maintained confidence in the market's potential and the company’s growth strategy.
He noted increasing competition in the lottery sector, saying, “This tech transformation we believe established solid foundations and a platform for future growth. We have initiated innovations in the Lotto business and are launching a new game called Powerball.” Chvátal added, “The UK market has not remained static, and is seeing various lottery-like propositions that are less regulated. This is merely a statement of current realities we face.”
Allwyn also has a 36.75% stake in the global betting brand Betano, which reported a 26% revenue increase during Q2 on a constant currency basis. CFO Ken Morton indicated that Betano's strong performance reflects its leading status in Brazil amidst declining performances from several competitors in the region. He stated, "Betano is the leader in Brazil, and that is a very large market. Betano’s positioning in that market has continued to go from strength to strength."
Chvátal pointed out the benefits of being a market leader in navigating tough conditions, stating that Betano’s early establishment in Brazil has allowed it to endure challenges more effectively. Morton anticipates that Betano will continue to convert EBITDA into net income at a similar or slightly improved rate in the upcoming quarters following an atypically soft Q2.
