Allwyn net revenue surges 27% as PrizePicks acquisition drives Q2 growth

Allwyn delivered 27% year-on-year net revenue growth in Q2, largely driven by acquiring a majority stake of US DFS operator PrizePicks in January.

In its Q2 results, released on Thursday, Allwyn reported net revenue of €1.25 billion, significantly ahead of the €979 million generated in the same quarter of last year.

Adjusted EBITDA also surged 29% from €355 million to €458 million, with margin edging up to 36.8% from 36.3%.

When excluding that acquisition, as well as the impact of higher gaming taxes in Austria, Allwyn’s Q2 revenue grew 5% year-on-year, while adjusted EBITDA rose 9%, when also considering a higher licence fee amortisation at LottoItalia.

Allwyn CEO Robert Chvátal said the company’s Q2 growth reflected continued momentum across its core markets, along with a strong contribution from PrizePicks and progress on its broader growth strategy.

The company has reaffirmed its group outlook for FY26, with net revenue growth of mid-to-high 20% revenue growth (before 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 said.

Allwyn’s regional performance in Q2

Alongside its acquisition of PrizePicks, Allwyn attributed its strong Q2 performance to “continued momentum” in continental Europe, where net revenue increased 4% year-on-year to €731 million.

Net revenue from the region grew 6% year-on-year when excluding the impacts of the higher gaming taxes in Austria, with Allwyn noting this was the final quarter that will see a year-on-year headwind.

The continental European growth was partially offset by UK growth of just 2% to €236 million.

Despite the modest revenue growth, UK profitability improved with adjusted EBITDA rising from €6 million to €23 million, benefitting from the completion of the National Lottery technology transformation.

Chvátal highlighted continued investment in product development, saying: “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.”

Driven by the PrizePicks acquisition, North American net revenue rocketed from €54 million to €294 million, while adjusted EBITDA reached €104 million.

PrizePicks net revenue increased 3% year-on-year on a standalone constant currency basis.

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.”

Sports betting and iGaming offset lottery decline

Allwyn’s lottery revenue fell 2% to €498 million in Q2, with the company attributing this to favourable jackpot cycles in the comparative period.

This effect was most apparent in continental Europe, where lottery revenue decreased 5% to €262 million. Lottery revenue in the UK increased 2% to €236 million.

However, sports betting and iGaming net revenues increased by 12% and 24% respectively. Sports betting growth was driven primarily by the Fifa World Cup.

Betano, in which Allwyn holds a minority stake, grew its total revenue 26% year-on-year on a constant currency basis.

Yet, Allwyn’s share of Betano’s net income was 3% lower year-on-year at €61 million, reflecting below-EBITDA items in Q2 and the same period of last year.

Following the conclusion of Q2, Allwyn agreed to increase its interest in Next Lotto, an online reseller of German state lottery games, to 64.53%, giving the company a controlling interest.

Change in Allwyn’s UK leadership

Last week, Allwyn UK announced its CEO Andria Vidler was to step down on 7 September, with industry veteran Phil Walker to take over on an interim basis.

Sources close to the company said Walker’s experience makes him well placed to steer the business as Allwyn UK searches for a permanent replacement for Vidler.

Walker said: “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.”