Allwyn Q2 revenue climbs 27% to €1.25B on PrizePicks deal
What's the deal? Allwyn reported second-quarter net revenue of €1.25bn, up 27% year-on-year, driven largely by its January acquisition of a majority stake in US daily fantasy sports operator PrizePicks. Adjusted EBITDA rose 29% to €458m, with margin improving from 36.3% to 36.8%.
Why the jump? PrizePicks did the heavy lifting. North American net revenue surged from €54m to €294m, with adjusted EBITDA reaching €104m. Stripping out the acquisition and higher Austrian gaming taxes, underlying revenue grew a more modest 5%.
How did the regions do? Continental Europe net revenue rose 4% to €731m, while UK revenue grew 2% to €236m. British profitability improved sharply, with adjusted EBITDA climbing from €6m to €23m after Allwyn completed the National LotteryDealroom has a profile for this one. Try Dealroom → technology transformation.
The product push: Chief executive Robert Chvátal pointed to new and enhanced draw-based games in Austria, the Czech Republic, and the UK, where Allwyn became the first operator outside the US to offer PowerballDealroom has a profile for this one. Try Dealroom →. Sports betting and igaming net revenues rose 12% and 24% respectively, with sports betting aided by the Fifa World Cup, offsetting a 2% decline in lottery revenue to €498m.
More dealmaking: After the quarter closed, Allwyn agreed to raise its stake in Next LottoDealroom has a profile for this one. Try Dealroom →, an online reseller of German state lottery games, to 64.53%, securing a controlling interest. BetanoDealroom has a profile for this one. Try Dealroom →, in which Allwyn holds a minority stake, grew total revenue 26% on a constant currency basis, though Allwyn's share of net income fell 3% to €61m.
Leadership change: In the UK, former 888 HoldingsDealroom has a profile for this one. Try Dealroom → chief commercial officer Phil Walker will step in as interim chief executive from September 7, replacing debut CEO Andria Vidler.
The outlook: Allwyn reaffirmed its guidance, projecting full-year revenue growth in the mid-to-high 20% range before around €60m in one-off impacts, and an adjusted EBITDA margin of about 37%. Chvátal said the company remains confident in its ability to deliver "sustainable growth, strong cash generation and attractive shareholder returns over the long term."
The signal: Allwyn's US bet is reshaping the business, with a fantasy sports operator now driving the bulk of its growth as European lottery revenue softens. Bolt-on deals like Next Lotto suggest the operator will keep consolidating to sustain momentum beyond its core markets.
Read more: focusgn.com
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