Allwyn Reports Q3 Revenue Growth Despite Profitability Decline From Betting Margins

The lottery and gaming operator’s group net revenue increased year-on-year from €971 million, with gross gaming revenue rising 5% to €2.12 billion. However, the adjusted EBITDA margin compressed from 41.8% to 36.6%.

Betano Impact on Profitability

The company attributed most of the profitability decline to its equity-accounted investment in Betano, where Allwyn’s share of net income dropped 53% to €34 million. This decrease resulted from customer-friendly sports betting outcomes in September and the timing of non-operating items that had benefited the prior-year quarter.

Despite the margin pressure, Betano’s total revenue grew 14% on a constant-currency basis in Q3 and 25% for the first nine months of 2025. The sports betting operator paid Allwyn €55 million in dividends during the quarter, bringing year-to-date dividends to €184 million.

Lottery Operations Drive Core Performance

Allwyn’s lottery operations remained the primary earnings driver for the group. Net revenue from lottery products increased 7% to €551 million, supported by strong jackpot game performance in Austria, the Czech Republic, Greece, and Cyprus.

Digital lottery net revenue delivered particularly strong growth at 16% year-on-year. Total online net gaming revenue across all products grew 8% to €343 million, representing 37% of total net gaming revenue, up one percentage point from the prior year.

Geographic Performance

Continental Europe remained the group’s largest market, with net revenue rising 6% to €729 million and adjusted EBITDA advancing 4% to €337 million. This growth occurred despite higher Austrian gaming taxes introduced in July as part of a fiscal consolidation package.

The UK business showed marked improvement, with net revenue increasing 6% to €250 million and adjusted EBITDA doubling to €9 million. The company continued its transformation of the UK National Lottery, including migration to a new central system and rollout of new retail terminals to more than 70% of retail partners by quarter-end.

Portfolio Restructuring

Allwyn continued reshaping its asset portfolio during the quarter. In July, the company completed the sale of its 10 German casinos for gross proceeds of €67 million. It also agreed to sell its Australian casino interests linked to the Reef Hotel Casino in Cairns, expecting approximately €58 million in proceeds on completion in the second half of 2026.

OPAP, Allwyn’s key operating company in Greece and Cyprus, acquired the remaining 15.51% stake in Stoiximan for €201 million. It later purchased the outstanding 16.5% minority interest in Hellenic Lotteries for €50,000.

Strategic Acquisitions and Merger

In September, Allwyn agreed to acquire approximately 62.3% of US daily fantasy operator PrizePicks for an initial cash consideration of $1.6 billion. The deal includes an earnout that could lift the implied enterprise value to up to $4.15 billion depending on performance targets between 2026 and 2028.

“We are delighted and excited to have announced two landmark transactions that significantly advance our growth strategy and strengthen our position as a global leader in lottery and gaming,” said Robert Chvatal, Allwyn CEO.

Post-quarter, the company announced an all-share combination with OPAP that would create the world’s second-largest listed lottery and gaming operator. Allwyn successfully syndicated $1.5 billion of term loan financing to support the PrizePicks acquisition.

The company confirmed it remains confident of achieving its full-year 2025 financial targets and corporate objectives.

Source: Allwyn