Allwyn has reported a 27% increase in year-on-year net revenue for the second quarter, buoyed by its acquisition of a majority stake in US daily fantasy sports operator PrizePicks earlier this year.
In its Q2 report released on Thursday, Allwyn announced net revenue of €1.25 billion, a substantial rise from the €979 million recorded in the same quarter of the previous year. Adjusted EBITDA also saw a notable 29% increase, climbing from €355 million to €458 million, with margins up slightly from 36.3% to 36.8%.
Excluding effects from the PrizePicks acquisition and the rise in gaming taxes in Austria, Allwyn’s revenue still grew by 5% year-on-year, while adjusted EBITDA rose by 9%, factoring in the amortization of increased license fees at LottoItalia.
CEO Robert Chvátal remarked that the company's growth this quarter shows ongoing strength across its key markets, enhanced by PrizePicks' performance and progress in its comprehensive growth strategy.
Allwyn reaffirmed its expectations for fiscal year 2026, anticipating mid-to-high 20% growth in net revenue (prior to around €60 million in exceptional impacts) and an adjusted EBITDA margin nearing 37%. "We remain confident in our ability to deliver sustainable growth, strong cash generation and attractive shareholder returns over the long term," Chvátal stated.
Breaking down regional performance, Allwyn indicated that the Q2 results reflected favorable developments in continental Europe, where net revenue rose 4% year-on-year to €731 million. When discounting the higher gaming taxes in Austria, revenue growth in this region was 6%, although it was noted that this would be the last quarter to encounter this year-on-year challenge. UK revenues grew at a slower rate of 2%, totaling €236 million; however, profitability improved with adjusted EBITDA increasing from €6 million to €23 million, aided by the completion of the National Lottery's technological overhaul.
Chvátal emphasized ongoing investment in product development, highlighting the introduction of new and improved draw-based lottery games in Austria, the Czech Republic, and the UK.
North American net revenue surged significantly from €54 million to €294 million thanks to the PrizePicks acquisition, with adjusted EBITDA reaching €104 million. PrizePicks' net revenue grew 3% year-on-year on a standalone constant currency basis. Chvátal elaborated, stating: "In North America, we continue to rapidly develop PrizePicks' offering, enabling players to combine PlayerPicks with a TeamPick within a single lineup, integrating prediction markets alongside DFS and helping to deepen engagement and expand playing options."
Meanwhile, Allwyn’s lottery revenue slipped 2% to €498 million, which the company attributed to favorable jackpot cycles during the same period last year. This decline was most pronounced in continental Europe, where lottery revenue decreased by 5% to €262 million, while UK lottery revenue increased by 2% to €236 million.
Conversely, Allwyn experienced growth in sports betting and iGaming, which saw net revenues rise by 12% and 24%, respectively, largely driven by the FIFA World Cup. Allwyn’s minority stake in Betano resulted in a 26% increase in total revenue year-on-year on a constant currency basis; however, Allwyn’s share of Betano’s net income dropped 3% to €61 million, impacted by below-EBITDA items in both the current and prior year periods.
Additionally, after the close of Q2, Allwyn secured an increase in its stake in Next Lotto, an online reseller of German state lottery games, to 64.53%, allowing the company to hold a controlling interest.
In management news, Allwyn UK announced that CEO Andria Vidler will step down on September 7, with Phil Walker, an industry veteran, stepping in as interim CEO. Sources indicated that Walker's expertise positions him well to guide the company while Allwyn UK searches for a permanent successor. Walker expressed enthusiasm for 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."
