Allwyn announced its financial results for the first quarter of 2026, showing revenue increased by 21% following what CEO Robert Chvatal called a “transformative quarter.”
Total revenue stood at over €1.2 billion ($1.4 billion), up from €991 million in the first quarter of 2025. That led to Adjusted EBITDA of €441 million, up 26% from last year.
Adjusted profit attributable to shareholders of the Company was €169 million, up 6% from the €159 million reported last year.
“I’m immensely proud of this transformative quarter, during which we have brought together two fantastic businesses to create a scaled global leader in gaming entertainment – with an enhanced ability to shape the industry, a wider range of growth opportunities and a highly differentiated platform to support long-term value creation and shareholder returns,” said Chvatal in a press release.
Acquisitions Drive Revenue Increase
The company is now the world’s second-largest listed gaming entertainment company following a merger with Greece’s OPAP last year.
It also acquired PrizePicks last year and includes the platform’s financial results for the first time. This led to revenue in North America increasing from €60 million to €239 million ($278 million).
PrizePicks launched prediction markets in partnership with Kalshi last year, expanding on its DFS products. It announced that it was integrating Kalshi’s markets onto its platform just days after announcing a deal with rival Polymarket. That agreement appears to have been forgotten.
EPS Falls Despite Revenue Rise
Despite the revenue increase, Earnings Per Share (EPS) dropped 38% from €0.38 to €0.20. The weighted average number of shares used to calculate EPS more than doubled, surging from approximately 358.6 million in Q1 2025 to 794.8 million in Q1 2026.
Adjusted finance costs also increased by 68% year-on-year, rising from €56 million to €94 million. This €38 million increase was largely due to higher gross debt taken on to finance the acquisition of PrizePicks and to fund capital contributions for the LottoItalia license renewal.
Shareholders who opposed the merger with OPAP exercised exit rights in April worth €456 million. The company also announced the launch of a €150 million share buyback program.
It said the program “reflects the Board’s conviction in the Company’s future growth and cash generation, as well as its commitment to shareholder return.”
UK Lottery Set for Revamp as Ticket Sales Drop
In the UK, lottery sales dipped while costs related to a technology upgrade also impacted earnings. Overall, Adjusted EBITDA dropped from €9 million to €4 million.
The company has invested in overhauling the National Lottery’s player database and is introducing a new format on June 7. This will offer players two chances to win for every £2 ticket and is expected to more than double the number of Lotto millionaires annually.
UK players will also be able to compete for Powerball jackpots alongside US customers, paying £4 per entry.
Allwyn Cleared to Operate UK Lottery
Allwyn has been cleared to continue operating the National Lottery after the UK High Court ruled against a legal challenge brought by Richard Desmond’s New Lottery Corporation. Desmond had applied to operate the lottery and claimed that the process for awarding it to Allwyn was unfair.
The court, however, dismissed his claims last month and ordered him to pay 75% of the UK Gambling Commission’s legal costs and 70% of Allwyn’s. This could result in Desmond having to pay up to £40 million. The Commission had offered him £10 million in an out-of-court settlement two years ago, but he refused and filed a lawsuit against them and Allwyn.
The ruling was welcomed by the Commission, which had seen its costs double amid the legal fees. A spokesperson said, “The award of significant costs will lessen the potential impact of the litigation on Good Causes.”
