Allwyn AG (Euronext Athens: ALWN) reported Net Revenue of €1,246 million for the three months to 30 June 2026, up 27% year-on-year, and Adjusted EBITDA of €458 million, up 29%. The figures are preliminary and unaudited.
Most of the increase came from acquisition rather than trading. Excluding PrizePicks, consolidated from 16 January 2026, and adjusting for higher gaming tax rates in Austria, Net Revenue rose 5% year-on-year and Adjusted EBITDA rose 9%. The comparative quarter benefited from favourable lottery jackpot cycles across several markets.
Total Revenue was €2,376 million against €2,241 million, up 6%, of which revenue from gaming activities (GGR) was €2,286 million. Adjusted EBITDA margin reached 36.8% of Net Revenue, 0.5 percentage points ahead of Q2 2025. Adjusted profit after tax was €239 million, up 35%. Adjusted earnings per share was €0.24, against €0.31 in the comparative period, which reflects OPAP’s standalone EPS before the combination.
“On an underlying basis, excluding the contribution from PrizePicks and adjusting for higher gaming taxes in Austria, Net Revenue increased by 5% year-on-year despite a strong comparative that benefited from favourable jackpot cycles across several markets,” said Allwyn CEO Robert Chvatal.
Digital and daily fantasy sports reshape the product mix
Lottery Net Revenue fell 2% to €498 million, held back by the comparative period’s EuroMillions rollover sequence and domestic jackpot cycles for Lotto in Austria and Sportka in the Czech Republic. iGaming rose 24% to €147 million and Sports Betting rose 12% to €145 million, the latter supported by activity around the FIFA World Cup 2026. VLTs and Casinos were 1% lower at €135 million.
Daily Fantasy Sports contributed €231 million, a line that did not exist a year earlier. Total online Net gaming revenue (NGR) was €596 million, up 81%, taking online to 52% of group NGR from 37%.
Continental Europe absorbs the Austrian tax rise
Continental Europe Net Revenue rose 4% to €731 million, or 6% excluding the Austrian tax increase that took effect on 1 July 2025. Q2 2026 was the final quarter in which that change registers as a year-on-year headwind.
Adjusted EBITDA in the region fell 3% to €293 million, with margin down 3.1 percentage points to 40.1%. Allwyn attributed the decline to the Austrian taxes, which cost €13 million at EBITDA level, and to a step-up in licence fee amortisation at LottoItalia following the renewed Lotto licence, which reduced the group’s share of net income by €9 million. Excluding both, regional Adjusted EBITDA rose 4%.
Two licence payments landed in the quarter. The group contributed €465 million to a LottoItalia capital increase in April 2026, the third and final instalment on a licence running to November 2034, and paid an €80 million upfront fee for the Hellenic Lotteries scratchcard and instant lottery licence, ratified by the Greek Parliament in April and commencing in May 2026 for a 12-year term.
Betano, held as an equity method investee, reported Total Revenue of €972 million, up 26%, and Operating EBITDA of €257 million, up 24%. Allwyn’s share of net income was €61 million, 3% lower year-on-year on below-EBITDA phasing. Betano paid dividends of €351 million during the quarter, €129 million of it to Allwyn.
PrizePicks lifts North American revenue and cuts margin
North America Net Revenue was €294 million, up 6% on a constant currency basis and 2% as reported. Adjusted EBITDA fell 26% to €104 million, with margin down 13.4 percentage points to 35.4%.
The margin move follows a marketing decision. PrizePicks raised North American marketing spend by €25 million above the comparative period around the FIFA World Cup 2026, producing record Q2 player acquisition and an active player base 18% larger year-on-year. Amounts staked rose more than 35%, and prediction market volumes rose more than 30% quarter-on-quarter. On a standalone constant currency basis, PrizePicks Net Revenue grew 3%, with operator-friendly sports results in the comparative quarter absorbing much of the underlying volume growth.
Legislation enacted in Illinois in June 2026 allows a potential three-year extension of the Illinois Lottery private management agreement to October 2030, subject to commercial agreement.
UK returns to profit, and guidance comes down
United Kingdom Net Revenue rose 3% on a constant currency basis to €236 million, while GGR fell 14% against a comparative quarter carrying favourable EuroMillions jackpot cycles. Adjusted EBITDA rose from €6 million to €23 million as Allwyn began recovering a portion of the roughly GBP 450 million invested in The National Lottery’s technology transformation. CAPEX in the market fell 65% to €13 million.
An enhanced Lotto format launched in June, and Powerball went live in July, the first time the game has been offered outside the United States. Allwyn said the UK Powerball jackpot passed £500 million after quarter end, against a highest ever EuroMillions jackpot of €250 million, with the two games producing 56 millionaires since launch. A £10 scratchcard pilot is planned.
The company also flagged the one negative revision in the release: after Net Revenue growth of 2% in the UK across the first half, it now expects FY2026 UK Net Revenue growth below the level previously anticipated. Allwyn announced renewed UK leadership in August 2026.
Cash returns, buyback and net debt
The Board declared an interim distribution of €0.20 per share for FY2026, in line with a stated policy of an annual minimum distribution of €1.00 per share. Payment is due on 12 November 2026 following a cut-off date of 21 October 2026, with a scrip option available. Total capital returns for calendar year 2026, including the buyback, reach €1.19 per share.
Allwyn announced a share buyback of up to €150 million on 4 June 2026 and had repurchased 6,538,301 shares for €89 million as of 21 August 2026. There were 771,045,909 shares outstanding at the end of the quarter, 78.39% held by a subsidiary of KKCG Group AG and 21.61% in free float.
Free cash flow was €398 million against €23 million a year earlier, helped by a €35 million working capital inflow and CAPEX down 39% to €38 million. Net debt including leases stood at €6,658 million at 30 June 2026, or 3.5x last-twelve-months Adjusted EBITDA on a pro forma basis for PrizePicks, up from €3,601 million a year earlier. The quarter carried €456 million in cash compensation to OPAP shareholders who exercised exit rights over 6.7% of shares outstanding, plus €583 million in cash distributions and the €545 million of licence payments.
What happens next
Allwyn re-affirmed group guidance for 2026: consolidated Net Revenue growth in the mid-to-high 20% range before one-off impacts of around €60 million in Continental Europe, and an Adjusted EBITDA margin of about 37%. The company said consumer confidence remains subdued in several markets without material impact on demand.
After the quarter, Allwyn agreed to raise its stake in Next Lotto, a licensed online reseller of German state lottery draw games, to 65%, taking a controlling interest. Full IFRS financial statements for the six months to 30 June 2026 are due after market close on Thursday, 3 September 2026, which will show the reported picture against the adjusted basis used here.
Source: Allwyn AG
