Allwyn reported a remarkable 27% year-on-year increase in net revenue for the second quarter, propelled primarily by its acquisition of a majority stake in US daily fantasy sports (DFS) operator PrizePicks in January.
In the financial results shared on Thursday, the company announced net revenue of €1.25 billion, a notable rise from the €979 million recorded in the same period last year.
Adjusted EBITDA also saw a significant uptick, climbing 29% from €355 million to €458 million, with the margin slightly increasing to 36.8% from 36.3%.
Excluding the effects of the PrizePicks acquisition and the higher gaming taxes imposed in Austria, Allwyn’s Q2 revenue grew by 5% year-on-year. Meanwhile, adjusted EBITDA rose by 9%, also factoring in a higher amortization of license fees at LottoItalia.
CEO Robert Chvátal expressed that the growth demonstrated strong progress across the company’s core markets and a considerable contribution from PrizePicks in line with Allwyn’s broader growth strategy.
The company reaffirmed its outlook for fiscal year 2026, projecting mid-to-high 20% net revenue growth, adjusted for around €60 million in one-time impacts, and an adjusted EBITDA margin of roughly 37%. Chvátal stated, “We remain confident in our ability to deliver sustainable growth, strong cash generation, and attractive shareholder returns over the long term.”
Examining regional performance, Allwyn attributed its Q2 success not only to the PrizePicks acquisition but also to ongoing momentum in continental Europe, where net revenue grew 4% year-on-year to €731 million. Adjusting for higher gaming taxes in Austria, revenue from this region increased by 6%. Notably, the company indicated that this quarter represents the final period experiencing year-on-year headwinds from such taxes.
Continental European growth was somewhat tempered by a modest 2% revenue increase in the UK, totaling €236 million. However, profitability in the UK improved, with adjusted EBITDA rising from €6 million to €23 million due in part to the completion of a technology transformation within the National Lottery.
Chvátal underscored continued investment in product development, emphasizing the introduction of new or enhanced draw-based lottery games in Austria, the Czech Republic, and the UK. He proudly noted, “We are the first operator outside the US to offer Powerball, one of the world’s largest jackpot games.”
In North America, the asset from PrizePicks pushed net revenue from €54 million to an impressive €294 million, contributing €104 million to adjusted EBITDA. PrizePicks experienced a 3% year-on-year net revenue increase on a standalone constant currency basis.
Chvátal remarked, “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.”
Despite the overall revenue growth, Allwyn’s lottery revenue dropped 2% to €498 million in Q2, attributed to favorable jackpot cycles in the prior year. This trend was mostly felt in continental Europe, where lottery revenue fell 5% to €262 million, although the UK saw a 2% increase to €236 million.
Positive impacts were noted in sports betting and iGaming, with net revenue rising by 12% and 24% respectively, largely fueled by the FIFA World Cup. The company’s minority stake in Betano also contributed to growth, with the operator's total revenue climbing 26% year-on-year on a constant currency basis. Despite this, Allwyn’s share of Betano’s net income dipped by 3% year-on-year to €61 million due to below-EBITDA items.
Following the close of Q2, Allwyn confirmed the increase of its stake in Next Lotto—a digital reseller of German state lottery games—to 64.53%, granting it a controlling interest.
In leadership news, Allwyn UK announced that CEO Andria Vidler would resign on September 7, with industry veteran Phil Walker assuming the interim CEO role. Sources have indicated that Walker’s experience positions him well to guide the company during the search for a permanent successor. Walker expressed enthusiasm about his new role, stating, “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.”
