Allwyn has reported a substantial 27% increase in year-on-year net revenue for the second quarter, significantly bolstered by its acquisition of a majority stake in the US daily fantasy sports operator PrizePicks in January.
In the results released on Thursday, Allwyn announced net revenue of €1.25 billion, up from €979 million during the same quarter last year. Adjusted EBITDA saw an impressive 29% rise, climbing from €355 million to €458 million, with the EBITDA margin slightly increasing to 36.8% from 36.3%.
Excluding the PrizePicks acquisition and the effects of heightened gaming taxes in Austria, Allwyn’s Q2 revenue still reflected a growth of 5% year-on-year, with adjusted EBITDA increasing by 9%, adjusted for higher license fee amortization at LottoItalia.
CEO Robert Chvátal stated that the company's growth in Q2 showed sustained momentum in its core markets, alongside significant contributions from the acquisition of PrizePicks and advancement in its broader growth strategy.
Allwyn has reiterated its outlook for the fiscal year 2026, predicting mid-to-high 20% net revenue growth, accounting for approximately €60 million in one-off impacts, and targeting an adjusted EBITDA margin of roughly 37%. Chvátal expressed confidence in the company’s capacity to maintain sustainable growth, generate strong cash flow, and deliver attractive returns for shareholders over the long term.
In terms of regional performance, Allwyn's acquisition of PrizePicks, coupled with strong momentum in continental Europe, was credited for the remarkable Q2 results. Net revenue across this region climbed 4% year-on-year to reach €731 million. When accounting for the higher gaming taxes in Austria, net revenue from continental Europe grew 6%, with Allwyn noting the taxes would no longer impact year-on-year comparisons going forward.
In the UK, revenue growth was modest at 2%, totaling €236 million. However, profitability improved significantly in this market, with adjusted EBITDA rising from €6 million to €23 million due to the successful completion of the National Lottery technology transformation.
Chvátal emphasized ongoing investments in product development, highlighting new and enhanced draw-based lottery games in Austria, the Czech Republic, and the United Kingdom. Allwyn is notably proud to be the first operator outside the US to offer Powerball, recognized as one of the world's largest jackpot games.
The PrizePicks acquisition propelled Allwyn’s North American net revenue from €54 million to €294 million, with adjusted EBITDA reaching €104 million. On a standalone basis, PrizePicks achieved a 3% increase in net revenue year-on-year.
Chvátal noted that in North America, the company continues to evolve PrizePicks' offerings by allowing players to combine PlayerPicks with a TeamPick in a single lineup, while also integrating prediction markets with daily fantasy sports to enhance customer engagement.
While Allwyn's lottery revenue dipped by 2% to €498 million in Q2, this decline was attributed to favorable jackpot cycles in the previous year. In continental Europe, lottery revenue fell 5% to €262 million, while revenue in the UK saw a 2% increase to €236 million.
Conversely, sports betting and iGaming revenues showed promising increases of 12% and 24%, respectively, with sports betting growth largely driven by the FIFA World Cup.
Allwyn’s stake in Betano, which it holds a minority interest in, saw total revenue rise by 26% year-on-year on a constant currency basis. However, Allwyn's share of Betano’s net income decreased by 3% year-on-year to €61 million, attributed to below-EBITDA items during Q2, mirroring trends from the same period in the previous year.
Following Q2, Allwyn increased its stake in Next Lotto, an online reseller of German state lottery games, to 64.53%, thus gaining control of the company.
In leadership news, Allwyn UK announced that its CEO Andria Vidler would step down on September 7, with industry veteran Phil Walker stepping in on an interim basis. Sources indicate Walker's experience positions him well to guide Allwyn UK while they search for a permanent replacement. Walker expressed his excitement about leading the team during this pivotal time in its growth trajectory.
