Allwyn posts strong Q2 results, with revenue up 27 per cent

The gaming operator received a boost from its acquisition of a majority stake in US daily fantasy sports operator PrizePicks.

Switzerland.- Allwyn has reported strong second quarter results, with net revenue climbing 27 per cent year-on-year to €1.25bn. The increase was largely attributed to its acquisition of a majority stake in US daily fantasy sports operator PrizePicks in January.

Adjusted EBITDA rose 29 per cent to €458m, with margin improving slightly from 36.3 to 36.8 per cent. Excluding the impact of the acquisition and higher Austrian gaming taxes, revenue grew 5 per cent year-on-year, while adjusted EBITDA increased 9 per cent, factoring in higher licence fee amortisation at LottoItalia.

Continental Europe net revenue was up 4 per cent to €731m, or 6 per cent when excluding the Austrian tax impact, which Allwyn noted was the final quarter to face this headwind. UK revenue grew 2 per cent to €236m, while profitability improved significantly, with adjusted EBITDA rising from €6m to €23m, aided by the completion of the National Lottery technology transformation.

Chief Executive Robert Chvátal highlighted ongoing investment in product development, including new or enhanced draw-based games in Austria, the Czech Republic and the UK, where Allwyn became the first operator outside the US to offer Powerball.

North American net revenue rose from €54m to €294m, driven by PrizePicks, with adjusted EBITDA reaching €104m. On a standalone constant currency basis, PrizePicks net revenue grew 3 per cent year-on-year.

Lottery revenue fell 2 per cent to €498m, attributed to favourable jackpot cycles in the comparative period, with continental Europe down 5 per cent to €262m and the UK up 2 per cent to €236m. Sports betting and igaming offset this decline, with net revenues rising 12 per cent and 24 per cent respectively, sports betting growth boosted by the Fifa World Cup.

Betano, in which Allwyn holds a minority stake, grew total revenue 26 per cent year-on-year on a constant currency basis, though Allwyn’s share of net income fell 3 per cent to €61m due to below-EBITDA items. After the quarter ended, Allwyn agreed to increase its stake in Next Lotto, an online reseller of German state lottery games, to 64.53 per cent, securing a controlling interest.

Chvátal said the results reflected “continued momentum across our core markets, along with a strong contribution from PrizePicks and progress on our broader growth strategy.” The company reaffirmed its outlook, projecting full-year mid-to-high 20 per cent revenue growth before around €60m in one-off impacts, and an adjusted EBITDA margin of approximately 37 per cent. “We remain confident in our ability to deliver sustainable growth, strong cash generation and attractive shareholder returns over the long term,” Chvátal said.

In the UK, Allwyn announced last week that former 888 Holdings Chief Commercial Officer Phil Walker will step in as interim CEO to replace its debut CEO Andria Vidler from September 7.