Allwyn International posted higher revenue but weaker profitability in Q3 2025, as solid lottery and digital performance was offset by softer sports betting margins and rising corporate expenses.
Net revenue increased 5% year-on-year to €1.02bn, with gross gaming revenue also up 5% to €2.12bn. However, adjusted EBITDA declined 8% to €374m, pushing the margin down to 36.6% from 41.8%.
The company noted that most divisions delivered stronger earnings, but results from its equity-accounted partner Betano dropped significantly. The decline was attributed to unusually favourable sports outcomes for customers in September and the absence of non-operating gains that had boosted last year’s figures.
Despite this, Betano’s revenue still rose 14% in constant currency during the quarter and 25% across the first nine months. Allwyn’s share of Betano’s net income fell 53% to €34m, although Betano paid €55m in dividends in Q3, bringing year-to-date payouts to €184m.
Lottery operations continued to be the main profit driver. Lottery net revenue grew 7% to €551m, supported by strong jackpots in Austria, the Czech Republic, Greece, and Cyprus, and by a 16% rise in digital lottery revenue. Online net gaming revenue climbed 8% to €343m, accounting for 37% of the group total.
Across regions, Continental Europe delivered a 6% increase in net revenue to €729m and a 4% rise in adjusted EBITDA to €337m, despite the impact of higher Austrian gaming taxes introduced in July. In the UK, net revenue was up 6% to €250m, while adjusted EBITDA doubled to €9m thanks to ongoing improvements in the National Lottery, including the rollout of a new central system and upgraded retail terminals covering more than 70% of partners.
North America posted slightly lower net revenue of €55m and adjusted EBITDA of €10m, partly due to non-cash accounting effects tied to the Instant Win Gaming acquisition.
Allwyn continued restructuring its asset base, finalising the sale of its 10 German casinos in July for €67m and agreeing to offload its Australian casino interests in Cairns, with around €58m expected upon completion in H2 2026.
Its Greek and Cypriot subsidiary OPAP bought the remaining 15.51% of Stoiximan for €201m and later acquired the last 16.5% of Hellenic Lotteries for €50,000.
On the strategic front, Allwyn agreed to purchase roughly 62.3% of US daily fantasy operator PrizePicks for $1.6bn upfront, with an earnout that could raise its valuation to as much as $4.15bn depending on 2026-2028 results. The company also announced an all-share merger with OPAP that would create the world’s second-largest listed lottery and gaming group, and it successfully syndicated $1.5bn in term loans to support the PrizePicks deal.
As of 30 September, net debt including leases stood at €3.55bn, equal to 2.3x adjusted EBITDA.
