Allwyn reports strong Q2 financial performance as revenue rises 27%

Allwyn has reported a strong second quarter for 2026, with group net revenue reaching €1.246 billion, representing a 27 per cent increase compared with the same period a year earlier. The company said the performance reflected continued momentum in Continental Europe, strong digital growth and the contribution from PrizePicks following its majority investment in the US daily fantasy sports business.

Adjusted EBITDA increased by 29 per cent to €458 million, while the adjusted EBITDA margin improved to 36.8 per cent from 36.3 per cent. The figures underline the scale of Allwyn's current expansion strategy as the lottery-led gaming entertainment group continues to build its presence across Europe and North America.

The company said underlying growth remained positive even when the effects of the PrizePicks acquisition and higher Austrian gaming taxes were excluded. On that basis, net revenue increased by 5 per cent year-on-year while adjusted EBITDA rose by 9 per cent, after also taking into account higher licence fee amortisation at LottoItalia.

Allwyn Q2 results show broad-based growth

The latest Allwyn Q2 results demonstrate that the group's headline expansion was not driven by a single market. Continental Europe generated net revenue of €731 million, up 4 per cent year-on-year on a reported basis. Excluding the impact of higher Austrian gaming taxes, growth was 6 per cent.

The company indicated that the Austrian tax impact represented the final quarter in which the business would face this particular headwind. This gives management a clearer base for the second half of the year and could make underlying growth comparisons easier in subsequent reporting periods.

In the United Kingdom, net revenue increased 2 per cent to €236 million. More notably, adjusted EBITDA improved from €6 million to €23 million. Allwyn attributed the stronger profitability in part to the completion of the technology transformation of The National Lottery.

That transformation has been a major strategic undertaking for Allwyn UK. The company has invested approximately £450 million in technology and infrastructure upgrades, including significant improvements to the National Lottery website and app.

PrizePicks strengthens North American performance

North America represented the most significant change in Allwyn's geographic earnings profile during the quarter. Net revenue increased from €54 million in the corresponding period to €294 million, with the majority of the increase reflecting the consolidation of PrizePicks.

Allwyn completed the acquisition of a 62.3 per cent stake in PrizePicks in January 2026. The transaction marked a major step into the US online sports entertainment market and has materially changed the group's reported financial profile.

Adjusted EBITDA for North America reached €104 million. On a standalone constant-currency basis, PrizePicks net revenue increased 3 per cent year-on-year.

The business is also broadening its product proposition. During the quarter, PrizePicks continued developing a combined player experience that allows customers to incorporate different forms of sports-based participation within the same lineup. Allwyn said the platform was also integrating prediction markets alongside daily fantasy sports.

The strategic importance of PrizePicks extends beyond the immediate revenue contribution. For Allwyn, the acquisition provides an established digital platform in a large and rapidly evolving US market while strengthening the group's exposure to technology-led entertainment.

Lottery performance affected by jackpot comparisons

Although the wider group delivered strong growth, lottery revenue declined 2 per cent to €498 million. Allwyn said the reduction was largely linked to favourable jackpot cycles in the comparative period rather than a fundamental deterioration in the underlying lottery business.

Continental European lottery revenue decreased 5 per cent to €262 million while UK lottery revenue increased 2 per cent to €236 million. The contrast highlights the different market conditions across Allwyn's operating regions.

Other activities helped offset the lottery decline. Sports betting net revenue increased 12 per cent while iGaming net revenue rose 24 per cent. Allwyn noted that sports betting benefited from the 2026 FIFA World Cup, which created an important period of heightened consumer engagement.

The combination of lottery, sports betting, iGaming and digital entertainment gives the group a more diversified revenue base. That diversification is increasingly central to Allwyn's strategy as it seeks to balance mature lottery operations with faster-growing digital activities.

Product development remains a strategic priority

Allwyn CEO Robert Chvátal highlighted continued investment in product development and customer experience during the quarter.

The company introduced or enhanced draw-based lottery products in Austria, the Czech Republic and the United Kingdom. The UK market also reached an important milestone with the introduction of Powerball.

Allwyn became the first operator outside the United States to offer Powerball in its market. The UK launch followed regulatory approval from the Gambling Commission and added a major international jackpot product to the National Lottery portfolio.

Powerball forms part of Allwyn's wider effort to strengthen the appeal and modernise the product range of The National Lottery. The technology transformation completed in the UK is intended to provide a more flexible platform for future innovation and product development.

Betano continues to grow despite income impact

Allwyn's investment exposure to Betano also contributed to the quarter's results. Betano, operated by Kaizen Gaming, recorded total revenue growth of 26 per cent year-on-year on a constant-currency basis.

However, Allwyn's share of net income from Betano declined 3 per cent to €61 million. The company attributed the reduction to below-EBITDA items rather than weaker top-line performance.

Allwyn holds a non-controlling interest in Kaizen Gaming, which operates Betano across a number of international markets. The investment provides Allwyn with exposure to a digital sports betting and gaming business while maintaining a diversified ownership structure.

Next Lotto deal expands German exposure

Allwyn also continued to pursue selective acquisitions and investments. After the end of the quarter, the company agreed to increase its interest in Next Lotto to approximately 65 per cent, giving it a controlling stake in the German online reseller of draw-based games offered by state lotteries.

The transaction follows an earlier increase in Allwyn's holding during the second quarter. The move provides the group with a stronger position in Germany's digital lottery ecosystem and is consistent with its stated approach of pursuing targeted inorganic growth opportunities.

The development is strategically relevant because it complements Allwyn's established lottery capabilities with an online distribution platform. It also broadens the group's exposure to the German market without changing its broader lottery-led business model.

Allwyn maintains its 2026 outlook

Despite a mixed performance across individual revenue categories, Allwyn maintained its financial outlook for the full year.

The company continues to expect consolidated net revenue growth in the mid-to-high 20 per cent range before one-off effects equivalent to approximately €60 million. It also reaffirmed an adjusted EBITDA margin of approximately 37 per cent.

Management said trading remained in line with expectations at group level. The company acknowledged more moderate net revenue growth in the United Kingdom but pointed to continuing momentum in Continental Europe and the contribution from PrizePicks.

Allwyn also announced an interim distribution of €0.20 per share for 2026. Alongside its previously announced capital return measures, the decision indicates that the group intends to balance investment in future growth with shareholder returns.

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 CEO added, “We remain confident in our ability to deliver sustainable growth, strong cash generation and attractive shareholder returns over the long term.”

Leadership transition at Allwyn UK

The quarter's results were followed by an important leadership announcement in the UK business. Allwyn confirmed that Phil Walker will become Interim Chief Executive Officer of Allwyn Entertainment Limited, the operating company responsible for The National Lottery in the UK, with effect from 7 September 2026.

Andria Vidler will step down as CEO after overseeing the delivery of the major technology and infrastructure transformation of The National Lottery.

Allwyn's announcement described the transition as part of the next phase for its UK operations. The leadership change comes as the business moves from a major technology implementation period towards using the upgraded infrastructure to support new products, improved customer experiences and further digital development.

Walker is an experienced commercial executive with a background that includes senior roles within the former 888 Holdings business, now part of evoke. His appointment therefore adds further industry experience to the leadership of the UK lottery operation.

A stronger and more diversified Allwyn

The latest financial results present Allwyn as a business undergoing significant structural change while maintaining strong performance in its established markets. The 27 per cent increase in quarterly net revenue was supported by both existing operations and the newly consolidated PrizePicks business.

At the same time, the numbers show why the underlying figures matter. Lottery revenue was affected by jackpot comparisons and Austrian taxation while UK growth remained relatively modest in revenue terms. Yet profitability in Britain improved substantially and digital categories such as sports betting and iGaming delivered stronger growth.

The PrizePicks acquisition has also changed the scale of Allwyn's North American operations, giving the group a more meaningful presence in digital sports entertainment. Combined with its lottery franchises across Europe, its investment in Betano and its increasing interest in Next Lotto, Allwyn is becoming more diversified in terms of products, markets and distribution channels.

Conclusion

Allwyn's second-quarter performance provides a strong indication that its international growth strategy is beginning to reshape the group's financial profile. Revenue of €1.246 billion and adjusted EBITDA of €458 million demonstrate substantial scale, while the improvement in profitability across the UK shows signs of progress following a lengthy technology investment programme.

The contribution from PrizePicks is likely to remain one of the most closely watched elements of future reporting. Its consolidation has materially increased North American revenue and gives Allwyn an important foothold in a major digital sports entertainment market.

At the same time, the group's continued focus on lottery innovation, digital products and selective acquisitions suggests that management is pursuing growth through multiple channels rather than relying on one segment. The expansion of its stake in Next Lotto and continued exposure to Betano reinforce that approach.

With its 2026 outlook unchanged, Allwyn enters the second half of the year from a position of relative financial strength. The combination of resilient lottery operations, expanding digital activities and a larger North American presence leaves the group with several potential avenues for further growth. The next stage will be to determine how effectively Allwyn can convert that broader scale into sustained organic performance, stronger cash generation and long-term value while continuing to operate within the regulatory frameworks of its markets.

FAQs

What were Allwyn's Q2 2026 net revenues?
Allwyn reported net revenue of €1.246 billion for the second quarter of 2026, representing a 27 per cent year-on-year increase.

How much did Allwyn's adjusted EBITDA increase?
Adjusted EBITDA rose 29 per cent year-on-year to €458 million, while the margin increased to 36.8 per cent.

What was the main driver of Allwyn's revenue growth in North America?
The main driver was PrizePicks, which Allwyn began consolidating after completing its acquisition of a 62.3 per cent stake in January 2026.

Did Allwyn's lottery revenue increase in Q2?
No. Group lottery revenue declined 2 per cent to €498 million, partly because the previous comparative period benefited from favourable jackpot cycles.

How did Allwyn perform in the UK?
UK net revenue increased 2 per cent to €236 million while adjusted EBITDA rose from €6 million to €23 million.

What happened to Allwyn's sports betting and iGaming revenues?
Sports betting net revenue increased 12 per cent while iGaming net revenue grew 24 per cent during the quarter.

What is PrizePicks?
PrizePicks is a US daily fantasy sports and sports entertainment platform in which Allwyn holds a majority stake following its January 2026 acquisition.

What is Allwyn's outlook for 2026?
Allwyn reaffirmed its expectation for mid-to-high 20 per cent consolidated net revenue growth before one-off effects and an adjusted EBITDA margin of approximately 37 per cent.

Who will lead Allwyn UK from September 2026?
Phil Walker is scheduled to become Interim Chief Executive Officer of Allwyn Entertainment Limited from 7 September 2026, replacing Andria Vidler.

What is Allwyn's new interest in Next Lotto?
Allwyn agreed after the quarter to increase its stake in Next Lotto to approximately 65 per cent, giving it a controlling interest in the German online lottery reseller.