Allwyn Q2 revenue jumps 27% to €1.25bn on PrizePicks acquisition

Allwyn has reported a significant year-on-year increase in its second-quarter financial results, with net revenue climbing 27 per cent to €1.25 billion. This compares to €979 million in the same period last year. The lottery and gaming operator also saw its adjusted earnings before interest, tax, depreciation, and amortisation (EBITDA) rise by 29 per cent, from €355 million in Q2 2023 to €458 million. The company’s adjusted EBITDA margin saw a slight improvement, moving to 36.8 per cent from 36.3 per cent.

The substantial growth was primarily fuelled by the group’s recent acquisition of US daily fantasy sports operator PrizePicks. When stripping out the impact of this acquisition and higher gaming taxes in Austria, Allwyn’s underlying net revenue growth for the quarter was 5 per cent year-on-year. Similarly, adjusted EBITDA grew by 9 per cent when also excluding the PrizePicks deal, Austrian taxes, and higher licence fee amortisation at LottoItalia.

Regional Performance Breakdown

The impact of the PrizePicks deal was most evident in the North American division, where net revenue soared from €54 million in Q2 2023 to €294 million in the latest quarter. The region delivered an adjusted EBITDA of €104 million. On a standalone, constant currency basis, PrizePicks’ own net revenue increased by 3 per cent year-on-year.

In continental Europe, net revenue registered a 4 per cent increase to €731 million. The company noted that this growth would have been 6 per cent if the effects of increased gaming taxes in Austria were excluded. The United Kingdom operation posted a 2 per cent rise in net revenue to €236 million. However, profitability in the UK market showed marked improvement, with adjusted EBITDA increasing from €6 million to €23 million over the year.

Segment and Corporate Developments

An analysis by product vertical reveals strong performance in digital gaming. Net revenues from iGaming grew by 24 per cent, while sports betting revenues increased by 12 per cent. This growth was contrasted by a 2 per cent overall decline in lottery revenue, which fell to €498 million. The lottery decrease was driven by a 5 per cent drop in continental Europe, partially offset by a 2 per cent increase in the UK. The company also highlighted that it is the first operator to offer the US Powerball lottery outside of America.

Allwyn’s associated company, Betano, recorded a 26 per cent year-on-year increase in total revenue on a constant currency basis. Despite this top-line growth, Allwyn’s share of Betano’s net income was 3 per cent lower than the previous year, at €61 million.

The financial update was accompanied by a significant leadership announcement for Allwyn’s UK arm. Andria Vidler will step down from her role as CEO on 7 September, with Phil Walker set to take over as interim chief executive. In other corporate activity, Allwyn confirmed that after the quarter ended, it agreed to raise its interest in Next Lotto to 64.53 per cent.

Looking ahead, Allwyn has reaffirmed its group outlook for the 2026 financial year. The operator anticipates net revenue growth in the mid-to-high 20 per cent range, before accounting for approximately €60 million in one-off impacts, and an adjusted EBITDA margin of around 37 per cent.