Allwyn AG Unsponsored ADR

Net revenue increased 27% year over year and adjusted EBITDA rose 29%, with adjusted EBITDA margin at 37% of net revenue. Adjusted EBITDA minus CapEx increased 43% year over year. On a like-for-like basis excluding PrizePicks and the Austria tax impact, net revenue growth was 5% year over year; excluding certain comparability items, adjusted EBITDA was up 9% year over year. By business, Continental Europe net revenue grew 4% year over year (6% excluding the Austria tax impact), North America constant-currency net revenue grew 6%, and Betano revenue rose 26% year over year. CapEx was down 39% year over year to EUR 38 million. Leverage was 3.5x at quarter-end. Management reaffirmed 2026 guidance for consolidated net revenue growth in the mid to high twenties before one-off impacts and an adjusted EBITDA margin of 37% of net revenue. The company expects the Austria tax headwind to fall away in Q3, softer sports outcome comparisons in PrizePicks and Betano in Q3, and the Lottoitalia headwind to fall away starting in Q4. Management also said U.K. net revenue for the rest of 2026 will be below the range initially anticipated, although aggregate net revenue guidance remains unchanged.

Robert Chvatal emphasized that Allwyn is executing across its strategic pillars: brand building, digital growth, product innovation, and disciplined capital returns. He highlighted One Brand progress in markets such as Austria, the Czech Republic, and Greece, plus new products like Powerball in the U.K. and Eurojackpot online in Greece. His tone was confident and upbeat, but grounded in the view that the company’s long-term strength comes from diversification across geographies and gaming verticals.

Ken Morton focused on the financial bridge behind the quarter: 27% revenue growth, 29% adjusted EBITDA growth, 37% margin, and 43% growth in adjusted EBITDA minus CapEx. He noted that Q2 comparables were distorted by Austria gaming taxes and Italy license amortization, but underlying organic EBITDA still grew 9% year over year. He also said CapEx normalized to EUR 38 million, leverage was 3.5x, the EUR 150 million buyback is continuing with EUR 89 million completed by the end of last week, and the interim dividend of EUR 0.20 per share was confirmed. He framed one-offs as still elevated in Q2, mainly from branding and transaction costs, with brand investment expected to remain the main adjustment item going forward.

Analysts focused on three areas: Betano’s strong growth versus Brazil peer commentary, PrizePicks monetization and the role of prediction markets, and the level and persistence of EBITDA adjustments and marketing spend. Management said Betano’s results reflected strength in Brazil plus other markets, but did not provide a geographic split. On PrizePicks, they said prediction markets are helping both engagement and customer acquisition, but are being used as part of a broader sports-entertainment platform rather than as a standalone product line. On adjustments, management said the remaining major item should be brand investment, while transaction-related costs from the Allwyn-OPAP combination and PrizePicks acquisition should fade.