Allwyn's CEO, Robert Chvátal, has expressed strong support for Phil Walker, the newly appointed CEO of the company’s UK operations, despite facing criticism from some politicians regarding Walker's previous role at William Hill. During a post-Q2 earnings call on Thursday, Chvátal asserted that Walker is ideally suited to steer the company during a crucial period of transition after completing significant retail and digital changes.
"We are prepared with our new CEO, Phil Walker, who understands the UK market and the digital environment," Chvátal remarked. He emphasized Walker's suitability as Allwyn embarks on its next phase following what he described as one of the largest industry transitions in both retail and digital segments.
Chvátal pointed out that Allwyn's UK market presence not only brings financial implications but also adds non-financial advantages. He noted that excelling in such large-scale transitions could prove beneficial for future lottery tenders in the UK.
Last week, Allwyn UK announced the departure of Andria Vidler, with Walker set to take over her position temporarily until a permanent replacement is appointed. However, this appointment has raised concerns from MPs Dawn Butler and Sir Iain Duncan Smith, who wrote to the Gambling Commission questioning Walker’s hiring due to past issues. They referenced a 2024 sanction issued by the Gambling Commission for systemic failures in anti-money laundering and counter-terrorism financing at William Hill, which had led to a formal warning issued to Walker.
In the recent quarterly report, Allwyn revealed mixed outcomes for its UK operations. Net revenue rose slightly by 2% to €236 million ($274.8 million), while profitability saw significant improvement, with adjusted EBITDA surging from €6 million to €23 million after a complete overhaul of the National Lottery technology.
Chvátal acknowledged that UK revenue for Allwyn’s fiscal year 2026 is projected to underperform against initial forecasts but reiterated the company’s confidence in the market and its commitment to revitalizing growth. He noted the increasing competition from prize draws, stating, "The technological transformation we implemented has laid the groundwork for future growth, prompting us to innovate existing Lotto offerings and introduce a new game called Powerball.
He also remarked, "We recognize the UK market hasn't remained static and now features a variety of less regulated lottery-like propositions. This is a reality we must address head-on."
Meanwhile, Allwyn maintains a 36.75% stake in the global betting brand Betano, which reported a 26% increase in revenue on a constant currency basis during Q2. Allwyn's CFO, Ken Morton, pointed to Betano's solid performance, particularly in Brazil, where it leads the market despite declines reported by many competitors.
Morton noted, "Betano's strong positioning in Brazil, a significant market, has translated to successful revenue growth, reflecting its leadership status. This robust performance in Q2 reaffirms Betano's strengths, along with its diversification across other markets."
Chvátal added that being an established market leader simplifies navigating tough market conditions, allowing Betano to better endure challenges. Morton also anticipates that Betano will maintain a consistent conversion of EBITDA into net income in the near future, despite a softer performance in Q2 than usual.
