Allwyn reported a remarkable 27% increase in net revenue for the second quarter, driven primarily by its acquisition of a majority stake in U.S. daily fantasy sports operator PrizePicks in January. In its quarterly results, released on Thursday, Allwyn revealed net revenue of €1.25 billion, substantially higher than the €979 million reported for the same quarter last year.
Adjusted EBITDA rose 29%, climbing from €355 million to €458 million, with the margin improving slightly from 36.3% to 36.8%. Excluding the impact of the PrizePicks acquisition and higher gaming taxes in Austria, Allwyn's Q2 revenue still showed a 5% year-on-year increase, while adjusted EBITDA grew by 9%. This latter figure also accounts for a higher amortization of license fees at LottoItalia.
CEO Robert Chvátal commented on the strong Q2 results, crediting them to ongoing momentum in core markets, the contributions from PrizePicks, and progress made on the wider growth strategy. He reaffirmed the company’s outlook for FY26, anticipating net revenue growth of mid-to-high 20% before approximately €60 million in one-off impacts and an adjusted EBITDA margin of around 37%. "We remain confident in our ability to deliver sustainable growth, strong cash generation and attractive shareholder returns over the long term," Chvátal stated.
In terms of regional performance, Allwyn spotlighted its acquisition’s influence alongside continued momentum in continental Europe, where net revenue grew by 4% year-on-year to €731 million. Excluding the effects of increased gaming taxes in Austria, this figure would rise to 6%, although Allwyn pointed out that this marks the final quarter that will see such a year-on-year headwind.
In contrast, UK revenue increased modestly by 2% to €236 million. Despite the slower growth, the UK’s profitability improved significantly, with adjusted EBITDA soaring from €6 million to €23 million, bolstered by the successful completion of the National Lottery technology transformation. Chvátal emphasized the commitment to product development, noting: "These included new or enhanced draw-based lottery games in Austria, the Czech Republic and the United Kingdom, where we are proud to be the first operator outside the US to offer Powerball, one of the world’s largest jackpot games."
The North American market, enhanced by the PrizePicks acquisition, saw net revenue leap from €54 million to €294 million, with adjusted EBITDA hitting €104 million. On a standalone basis, PrizePicks’ net revenue grew by 3% year-on-year when adjusted for constant currency. Chvátal added, "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."
Allwyn’s lottery segment, however, faced a 2% decline in revenue to €498 million, attributed in part to favorable jackpot cycles last year. In continental Europe, lottery revenue fell by 5% to €262 million, while the UK reported a 2% increase to €236 million. In contrast, net revenues from sports betting and iGaming grew by 12% and 24%, respectively, with the FIFA World Cup serving as a key driver for sports betting.
The company’s minority stake in Betano, which grew its total revenue by 26% year-on-year at constant currency, resulted in a smaller share of net income for Allwyn, which decreased by 3% year-on-year to €61 million due to certain below-EBITDA items.
Following Q2, Allwyn announced plans to increase its interest in Next Lotto, an online reseller of German state lottery games, to 64.53%, achieving a controlling interest.
In a recent change to leadership, Allwyn UK disclosed that CEO Andria Vidler will step down on September 7, with industry veteran Phil Walker stepping in as interim CEO. Sources suggest Walker's experience positions him to lead effectively as Allwyn UK seeks a permanent successor for Vidler. Walker expressed enthusiasm about taking over leadership during this crucial phase for the company: "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."
