Allwyn International achieved higher revenue, but earnings dropped during the third quarter of 2025. Lottery and digital segments grew while sports betting margins weakened and corporate costs increased. Net revenue for the group climbed 5% year-on-year, reaching €1.02bn. Gross gaming revenue increased 5% to €2.12bn during the same period. Adjusted EBITDA decreased 8% to €374m, which reduced the margin to 36.6% from 41.8%. Most businesses within the company produced profitability growth, according to management. Betano’s contribution as an equity-accounted investor fell sharply during the quarter.

Customer-friendly sports results in September caused this decline, reportedly. Non-operating items that helped the prior-year quarter also affected timing. Betano’s total revenue still expanded 14% on a constant-currency basis in Q3. The first nine months showed 25% growth, while Allwyn’s share of net income from Betano fell 53% to €34m. Dividends from Betano to Allwyn totalled €55m in the quarter. Year-to-date dividends reached €184m from this partnership. Lottery products drove the group’s main earnings performance consistently. Net revenue from lottery operations grew 7% to €551m across markets. Austria, the Czech Republic, Greece and Cyprus saw strong jackpot games while digital lottery net revenue jumped 16%.

Online casino revenue grew 8% to a total of €343m, which is 37% of total casino revenue, an increase of one percentage point from the previous year. Continental Europe reported a 6% to €729m in terms of net revenue, which grew geographically. Also, we saw an increase in Adjusted EBITDA by 4% to €337m, which was achieved as we weathered the July introduction of Austrian gaming taxes, which we put in place for fiscal consolidation.

UK operations boosted net revenue by 6% to €250m successfully. Adjusted EBITDA doubled to €9m, showing significant improvement. Allwyn transformed the UK National Lottery through various initiatives continuously. Migration to the new central system occurred alongside retail terminal rollout, reaching over 70% of partners by quarter-end.

North American Revenue Decreases Marginally

Revenue in North America fell slightly to €55m with adjusted EBITDA of €10m. Non-cash acquisition accounting effects from Instant Win Gaming partially caused this. Portfolio reshaping continued throughout the quarter for Allwyn. The company sold 10 German casinos in July, generating gross proceeds of €67m. Australian casino interests connected to the Reef Hotel Casino in Cairns were also sold. Proceeds of approximately €58m are expected when completion occurs in the second half of 2026. OPAP purchased the remaining 15.51% stake in Stoiximan for €201m as Allwyn’s key operating company. Later, it acquired the outstanding 16.5% minority interest in Hellenic Lotteries for €50,000.

Allwyn agreed to buy about 62.3% of the US daily fantasy operator PrizePicks strategically. Initial cash consideration equals $1.6bn with earnout potentially lifting implied enterprise value to $4.15bn based on 2026-2028 performance. An all-share combination with OPAP was announced, creating the world’s second-largest listed lottery and gaming operator. The company syndicated $1.5bn of term loan financing successfully supporting the PrizePicks transaction. Net debt including leases reached €3.55bn as of 30 September. This represented 2.3x adjusted EBITDA for the period.