Allwyn (Euronext Athens: ALWN) announced a 27% increase in Q2 net revenue to €1.25 billion ($1.46 billion), driven by the acquisition of PrizePicks and continued growth in continental Europe.

Adjusted EBITDA rose by 29% to €458 million ($533 million). Margin increased by half a percentage point to 36.8%.

The significant growth was primarily driven by the acquisition of PrizePicks. Allwyn acquired approximately 60% of the daily fantasy sports operator for $1.6 billion in September last year, which was integrated in January.

CEO Robert Chvatal noted the quarter’s strong performance reflected “sustained momentum in Continental Europe and the contribution from PrizePicks.”

Chvatal also mentioned the company’s progress in investing in products and player experience, delivering substantial product enhancements since the first quarter, resulting in a 5% year-on-year increase in underlying revenue, excluding the PrizePicks acquisition and higher gaming taxes in Austria.

Allwyn’s growth strategy includes acquiring a greater stake in German online lottery reseller Next Lotto, increasing its ownership to 65% to establish a controlling interest.

The company reaffirmed its FY2026 group outlook, anticipating net revenue growth in the mid-to-high 20% range, excluding previously disclosed one-off impacts.

UK Profitability Enhances Following Technological Upgrade

Allwyn’s largest division, Continental Europe, saw a 4% increase in net revenue to €731 million ($851 million).

< p>Within the group, iGaming net revenue saw a 24% increase, while sports betting rose by 12%. However, lottery net revenue declined by 2%, partly due to the favorable jackpot cycles in Q2 2025.

< p>In the UK, National Lottery net revenue reported a 2% growth to €236 million ($274.7 million). Gaming revenue, on the other hand, fell by 16% to €914 million ($1.06 billion). Allwyn attributed this comparison to the strong EuroMillions jackpots in the previous year.

< p>Adjusted EBITDA for the UK increased to €23 million ($26.8 million), up from €6 million ($6.9 million) a year ago. This improvement was credited to the recovery of costs related to the National Lottery transformation and a 65% decrease in capital expenditure to €13 million ($15.1 million) following the completion of the technology overhaul.

< p>Notwithstanding the improvement, Allwyn stated that UK net revenue growth for FY2026 will be lower than expected. H1 UK net revenue showed a 2% increase.

New Lotto and Powerball Products Expand UK Offering

< p>Allwyn introduced new National Lottery products post the technological overhaul in the UK.

< p>The updated Lotto format launched on June 10 with a two-round structure, resulting in 56 players becoming millionaires in the following two months, compared to 35 in the same period last year. Of these winners, 32 received prizes of £1 million or more through the new second round.

< p>Powerball was launched on July 21, making the UK the first market outside the US to offer the game. Allwyn reported almost one million UK prizes won by late August, totaling over £13.8 million ($18.7 million).

< p>Andy Carter, senior winners’ adviser at Allwyn, stated, “This summer marks the beginning of an exciting new chapter for The National Lottery, offering players more opportunities to win and dream big in the upcoming months.”