Allwyn AG reported strong second-quarter 2026 results, with net revenue rising 27% year-on-year to $1.25 billion, driven by organic growth and acquisitions. Adjusted EBITDA climbed 29% to $462.5 million, while the adjusted EBITDA margin expanded to 37%. The company maintained its full-year 2026 guidance, targeting mid- to high-twenties revenue growth and a 37% EBITDA margin.
Organic net revenue growth, excluding consolidation effects and one-time items, reached 5% year-on-year. Free cash flow conversion exceeded 100% for the quarter, and net debt leverage stood at 3.5x at period-end. Capital expenditures totaled EUR 38 million, down 39% year-on-year and representing 3% of net revenue. The board approved an interim dividend of EUR 0.20 per share, bringing total 2026 payouts to EUR 1.00 per share. A $150 million share buyback program remains 60% complete, with approximately $89 million repurchased.
The U.K. segment, which underwent a EUR 450 million technology re-platforming, saw constant currency net revenue grow 3% year-on-year, though management expects the segment to underperform its prior guidance range for the remainder of 2026 due to digital player friction and strong prior-year jackpot cycles. PrizePicks, Allwyn’s North American sportsbook, reported constant currency net revenue growth of 3% year-on-year, with total North America revenue up 21%. Active player counts rose 18% year-on-year, supported by marketing investments tied to the FIFA World Cup.
Betano, Allwyn’s European sports betting brand, delivered 26% year-on-year revenue growth and 24% EBITDA growth, expanding from three markets during the prior World Cup to 12 markets for the current tournament. Continental Europe’s digital growth accelerated 21% year-on-year, with brand awareness surpassing 70% in eight months following the January launch of the unified Allwyn brand in Austria, the Czech Republic, and Greece. The company also secured a controlling stake in Next Lotto, an online lottery reseller in Germany.
Allwyn reaffirmed its 2026 guidance, citing expected benefits in Q3 from the lifting of Austria’s gaming tax headwind—a EUR 13 million drag in Q2—as well as easing sports outcome comparisons for PrizePicks and Betano. The Lottoitalia headwind, which reduced Q2 EBITDA by EUR 9 million, is set to roll off starting in Q4. Shares declined 2.08% to $14.15, following a 52-week range of $11.66 to $20.92.
