Allwyn has reported a significant 27% increase in year-on-year net revenue for the second quarter, largely attributed to its acquisition of a majority stake in US daily fantasy sports operator PrizePicks in January.
In its recently released second-quarter results, Allwyn announced net revenue reaching €1.25 billion, a notable rise from last year's €979 million for the same quarter. The company also saw adjusted EBITDA soar 29%, climbing from €355 million the previous year to €458 million, with margins improving slightly from 36.3% to 36.8%.
When excluding the effects of the acquisition and the impact of rising gaming taxes in Austria, Allwyn's Q2 revenue still managed a year-on-year increase of 5%. Adjusted EBITDA rose by 9%, factoring in a higher amortization of license fees at LottoItalia.
CEO Robert Chvátal highlighted that the growth reflects ongoing momentum in Allwyn’s key markets, bolstered by PrizePicks and advancements in the company's broader growth strategy. Allwyn has maintained its forecast for fiscal year 2026, targeting mid-to-high 20% growth in net revenue (accounting for approximately €60 million in one-off impacts) and aiming for an adjusted EBITDA margin close to 37%.
Chvátal expressed confidence in the company's capacity for sustainable growth, cash generation, and appealing returns for shareholders in the long run.
In terms of regional performance, Allwyn's acquisition of PrizePicks has been significant, with continental Europe contributing to a 4% year-on-year increase in net revenue, amounting to €731 million. When disregarding the impact of higher gaming taxes in Austria, revenue from the region ascended by 6%. However, this growth was somewhat tempered by a modest 2% increase in UK revenues, which totaled €236 million. Nonetheless, profitability in the UK improved substantially, with adjusted EBITDA climbing from €6 million to €23 million, thanks to the completion of a technology overhaul for the National Lottery.
Chvátal remarked on the value of continued investment in product development, noting new and enhanced lottery games launched in Austria, the Czech Republic, and the United Kingdom, including the introduction of Powerball, a major jackpot game in the UK.
With the PrizePicks acquisition, North American net revenue surged from €54 million to €294 million, with adjusted EBITDA reaching €104 million. PrizePicks itself experienced a standalone net revenue growth of 3% on a constant currency basis.
Chvátal stated, "In North America we continue to rapidly develop PrizePicks' offering, enabling players to combine PlayerPicks with a TeamPick within a single line-up, integrating prediction markets alongside DFS and helping to deepen engagement and expand the ways in which customers can play."
While lottery revenue dipped by 2% to €498 million due to favorable jackpot cycles from the previous year, sports betting and iGaming revenues surged by 12% and 24%, respectively, largely driven by the Fifa World Cup. Allwyn’s minority stake in Betano saw the total revenue increase by 26% year-on-year in constant currency, although Allwyn’s share of net income from Betano fell 3% to €61 million due to adjustments in Q2 compared to the previous year.
After the second quarter, Allwyn announced plans to increase its stake in Next Lotto, an online reseller of German state lottery games, to 64.53%, thereby securing a controlling interest.
In a change of leadership, Allwyn UK declared last week that CEO Andria Vidler will step down on September 7. Phil Walker, an industry veteran, will take over as interim CEO. Sources indicated that Walker's experience positions him well to guide the company as Allwyn UK searches for a permanent replacement. Walker stated, "I am excited and proud to be taking up the baton from Andria and joining such a vital national institution at this important stage of its growth journey."
