Allwyn experienced a notable increase in net revenue, posting a 27% year-on-year growth in Q2, primarily fueled by its acquisition of a majority stake in US daily fantasy sports operator PrizePicks in January.
On Thursday, Allwyn published its Q2 results, revealing net revenue of €1.25 billion, a substantial jump from €979 million in the same period last year.
Adjusted EBITDA saw a 29% rise, climbing from €355 million to €458 million, with margins increasing slightly to 36.8% from 36.3%.
Excluding the impact of the PrizePicks acquisition and higher gaming taxes in Austria, Allwyn's Q2 revenue grew 5% year-on-year, while adjusted EBITDA rose 9%, considering also a higher license fee amortization at LottoItalia.
CEO Robert Chvátal commented on the company’s performance, noting that the growth in Q2 is indicative of strong momentum in its core markets and highlighted PrizePicks’ contribution and advancements in their overarching growth strategy.
Allwyn reaffirmed its group outlook for the fiscal year 2026, aiming for mid-to-high 20% net revenue growth (excluding around €60 million in one-off impacts) and an adjusted EBITDA margin of approximately 37%. “We remain confident in our ability to deliver sustainable growth, strong cash generation, and attractive shareholder returns over the long term,” Chvátal stated.
Examining regional performance, Allwyn credited its robust Q2 results to consistent growth in continental Europe, where net revenue increased by 4% year-on-year to €731 million. If accounting for the increased gaming taxes in Austria, revenue from the region actually grew 6% year-on-year, a figure expected to improve, as this will be the last quarter affected by these tax changes.
Conversely, the UK market saw a modest growth of just 2%, reaching €236 million. However, profitability improved with adjusted EBITDA rising from €6 million to €23 million due to the completion of national lottery technology upgrades.
Chvátal emphasized continued investment in product development, mentioning the launch of enhanced draw-based lottery games in Austria, the Czech Republic, and the UK, where Allwyn became the first operator outside the United States to offer Powerball, a major jackpot game.
In North America, the acquisition of PrizePicks significantly boosted net revenue from €54 million to €294 million, while adjusted EBITDA soared to €104 million. PrizePicks itself recorded a 3% increase in standalone net revenue on a constant currency basis.
Chvátal elaborated on the North American strategy, highlighting ongoing developments for PrizePicks, allowing players to combine PlayerPicks with TeamPicks and blending prediction markets with daily fantasy sports for enhanced customer engagement.
Despite the overall growth, Allwyn’s lottery revenue dipped by 2% to €498 million in Q2, attributed to favorable jackpot cycles in the previous year. This decline was most pronounced in continental Europe, where lottery revenue fell 5% to €262 million. In contrast, UK lottery revenue increased by 2% to €236 million.
On the other hand, revenues from sports betting and iGaming surged by 12% and 24%, respectively, with the FIFA World Cup being a key driver for sports betting growth. Allwyn also holds a minority stake in Betano, which reported a 26% year-on-year revenue growth based on constant currency.
However, Allwyn’s share of Betano’s net income decreased by 3% year-on-year to €61 million, largely due to certain below-EBITDA items in Q2 compared to the same timeframe in the previous year.
After Q2, Allwyn decided to increase its stake in Next Lotto, a platform for reselling German state lottery games, to 64.53%, which now gives Allwyn a controlling interest in the company.
In leadership news, Allwyn UK announced last week that CEO Andria Vidler would step down on September 7, with industry veteran Phil Walker stepping in on an interim basis. Sources indicated that Walker's experience makes him well-suited to guide the company during its search for a permanent replacement. Walker expressed excitement about the 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.”
