Presenting Allwyn’s first post-OPAP and PrizePicks M&A financial results was a “very excited” CEO in Robert Chvatal.
Indeed, Chvatal is excited with good reason, as the first quarterly report of the year for Allwyn is a strong one. Revenue up 21% year-on-year to €1.2bn ($1.4bn) with 5% underlying EBITDA growth despite enormous mergers and tax shifts in a key market is nothing to be shy about.
European engine powers revenue surge
Allwyn's first-quarter results offered fresh evidence that its diversification strategy is firing on all cylinders, with continental Europe leading the charge. Alongside its revenue upswing, the lottery operator posted a 24% rise in adjusted EBITDA to €443m, boosted by strong performances across its European lottery, sports betting and iGaming portfolio.
The quarter marked Allwyn's first reporting period following the completion of its OPAP merger and included the initial contribution from North American fantasy sports operator PrizePicks. While the headline growth painted a positive picture, underlying figures provided the most clarity.
Underlying EBITDA rose 11% before the impact of PrizePicks, with Europe delivering 8% growth and accounting for around 70% of group EBITDA. Digital channels continued to gain traction, while Betano remained a standout performer. Income from Allwyn's stake in the sportsbook brand jumped 43% year-on-year, reinforcing its growing importance within the group's increasingly diversified revenue mix.
Executives also highlighted the continued rollout of Allwyn's global brand strategy, alongside the successful integration of PrizePicks and completion of key UK technology projects. Taken together, Both Chvatal and Morton believe the business remains firmly on course to meet its full-year targets.
UK transformation nears payoff
As it has for some time, the UK remains a tale of investment today, anticipated rewards tomorrow. National Lottery revenue rose 3% year-on-year, or 7% on a constant currency basis, but EBITDA fell 56% as Allwyn absorbed the final costs of its technological transformation.
With the technology overhaul now complete, attention is shifting to growth. A revamped Lotto product and the launch of Powerball are expected to headline a new wave of innovation aimed at boosting player engagement and increasing the number of million-pound winners generated each year.
North America was more mixed. Excluding PrizePicks, revenue slipped 1% and EBITDA fell 5%, though revenue still increased 5% on a constant currency basis. However, the newly acquired DFS operator is already beginning to contribute to the wider growth story.
Elsewhere, Allwyn announced a share buyback of up to €150m following the collapse of its proposed Novibet acquisition, signalling both balance sheet confidence and continued discipline around M&A.
The broader picture remains compelling. Net revenue has more than tripled since 2019, and with the UK overhaul complete, PrizePicks integrated and Betano remaining strong ahead of the World Cup, Allwyn appears to be entering a new chapter.
Q&A: Kenneth Morton, CFO, Allwyn
A strong performance in continental Europe. What are your key takeaways from why this quarter paints such a promising picture looking ahead?
“This was our first full quarter following the OPAP merger and the underlying performance remained strong, even before accounting for PrizePicks. We're seeing good momentum across the portfolio, particularly with Betano, which is heading into a major opportunity with the World Cup approaching.
“In the UK, we're preparing to launch new products this summer, including Powerball, while the major investment phase has now been completed. PrizePicks is also progressing well, with a revamped app and new product enhancements helping drive engagement.”
With the UK National Lottery tech overhaul complete, can you give us a timeline for when these products will begin reaching players and when investors might see the financial benefits?
“The first new Lotto product launches this month, with Powerball expected to follow during the summer.
“The Lotto refresh will improve players' chances of winning and significantly increase the number of million-pound-plus winners each year – which is a really exciting prospect for us. Financially, the benefits should become visible over the next few quarters as we move beyond the heavy investment phase and begin seeing improvements in EBITDA.”
Can you talk us through the decision regarding Novibet and how those unused M&A funds could influence the roadmap for the second half of the year?
“We reassessed on our potential Novibet acquisition after concerns were raised by the Greek competition authorities regarding the structure of the market.
“As a result, the capital originally allocated to the transaction is now being used for the share buyback programme. We remain active on M&A opportunities, but our focus is always on pursuing the right deals rather than simply increasing activity.”
The Lotto refresh will improve players' chances of winning and significantly
A quick word on your new North America CEO appointment. How are you hoping to execute the strategy in the US moving forward?
“Absolutely! We’re very excited to have Khalid on board as we have worked with him for some time through his affiliation with the Virginia Lottery – one of our partners.
“He brings significant lottery experience to the table, and we're pleased to have him join at such an important time for the business. Combined with positive developments around the Illinois licence extension as a knock-on effect of newly passed regulation, we're focused on continuing to grow both sides of the North American operation. However, our lottery operations and PrizePicks business are quite different, so there will be limited overlap between the two.”
Looking back to 2019, net revenue has more than tripled. With several years still left in the decade, can that trajectory continue?
“We're very proud of what the business has achieved since 2019, which incidentally was the year I joined. Growth has come from both organic expansion and acquisitions, and we continue to invest in both areas. Scale is becoming increasingly important in gaming, allowing operators to innovate faster and operate more efficiently. We believe Allwyn is well positioned to benefit from that long-term trend.”
During FY2025, Allwyn's revenue reached €4.1bn, up 4% year-on-year
