Allwyn International has disclosed a 4% increase in total revenue for the third quarter of its 2025 financial year. Announced on Wednesday, this growth is seen as a precursor to further expansion in 2026, as the company gears up for its merger with OPAP.
In a strategic move, Allwyn declared in October its intention to merge with OPAP, forming an entity valued at €16 billion ($18.5 billion). Under the terms, Allwyn will command a 78.5% economic interest, while OPAP will control the remaining 21.5%.
Currently, through its controlling shareholder KKCG, Allwyn holds a 51.78% stake in OPAP, a relationship that began with an investment in 2013. The merger is anticipated to be finalized in the first half of 2026.
Allwyn’s CEO, Robert Chvatal, described the merger as a pivotal step in the company’s journey. He emphasized that listing on public markets would enhance their access to capital markets, elevating Allwyn’s global stature. “It truly represents the next milestone for us,” he noted, highlighting that a consolidated public presence would bolster their strategic goals.
During an earnings call, Chvatal conveyed that the planned agreements, coupled with the focus on establishing Allwyn as a consumer-centric brand, would set the stage for continued growth. “The introduction of a unified brand is crucial for our growth strategy. This will enable us to engage with new demographics across existing and new markets, achieving marketing synergies,” he explained.
Reflecting on the progress made this year, Chvatal expressed confidence in Allwyn’s strategic direction, poised for imminent growth and strategic advancements.
Expanding Horizons Through Mergers and Acquisitions
Allwyn’s recent activities in mergers and acquisitions were not limited to the OPAP deal. In September, the company agreed to acquire a majority stake in PrizePicks, a daily fantasy sports operator, investing $1.6 billion for a 62.3% stake.
Furthermore, Allwyn plans to acquire a 51% majority stake in Logflex MT Holding Limited, the parent of the online sports betting and gaming group Novibet, within the first half of the year. Additionally, Allwyn intends to divest its land-based casino assets in Germany and Australia and has acquired the remaining minority stake in Stoiximan, an online operator serving Greece and Cyprus.
Lottery Operations Drive Allwyn’s Financial Performance
A detailed breakdown of Allwyn’s Q3 performance revealed a total group revenue of €2.20 billion for the three months ending September 30, marking a 4% increase from the previous year. Of this, gross gaming revenue soared by 5% to €2.12 billion. Net revenue similarly climbed by 5% year-on-year to reach €1.02 billion.
The lottery sector continued to be a significant revenue generator, contributing €551 million, a 7% rise. Revenue from video lottery terminals (VLT) and casino operations grew by 6% to €139 million, while sports betting revenue increased by 3%.
Allwyn’s iGaming operations generated €120 million, reflecting a 2% increase from 2024. The total online net gaming revenue for the quarter was €343 million, an 8% improvement over the previous year. Additional revenue from non-gaming activities stood at €84 million, maintaining a steady year-on-year figure.
Geographically, Continental Europe remains the primary revenue source, contributing €729 million, up 6% from last year. This encompasses Allwyn’s activities in Austria, the Czech Republic, Greece, Cyprus, and Italy, where lottery operations exhibited a “strong” performance alongside “solid” growth in sports betting and VLTs.
In the UK, where Allwyn manages the National Lottery, revenue rose by 6% to €250 million. Digital channels emerged as a significant growth driver, with online gross gaming revenue escalating by 10%, aided by sizeable jackpots in the EuroMillions and targeted promotions.
North America exhibited the most pronounced growth, with revenue surging by 15% to €55 million, facilitated by the consolidation of stakes in Instant Win Gaming last September.
A Mixed Financial Picture
Despite the positive revenue trajectory, Allwyn’s earnings presented a mixed picture. Adjusted EBITDA for the quarter decreased by 8% year-on-year to €374 million. This decline was largely attributed to a diminished contribution from equity method investees, particularly due to Betano’s performance, which was impacted by sports results favoring customers in September.
Additionally, recurring non-operating items that had supported the previous year’s results were absent, and corporate cost restructuring led to an increase of €14 million, affecting this year’s earnings.
While Allwyn withheld a complete breakdown of its bottom-line performance, it disclosed year-to-date figures. By the end of September, total revenue reached €6.65 billion, up 6% from the previous year. Gross gaming revenue was €6.39 billion, also a 6% increase. Net revenue for the period was €2.99 billion, 5% higher than in 2024. Year-to-date adjusted EBITDA was reported as €1.09 billion, consistent with the prior year’s figure.
OPAP’s Parallel Growth and Strong Performance
Just before Allwyn’s Q3 results were made public, OPAP released its own quarterly performance, showing a 6.6% rise in gross gaming revenue to €602.9 million, and a 6% increase in net revenue to €409.9 million.
OPAP attributed the revenue growth primarily to the success of its Tzoker lottery and robust expansion in its Powerspin offering. Lottery gross gaming revenue grew by 9.8% to €219.6 million, driven by a record Tzoker jackpot in August. Instant and passives revenue rose by 10.8% to €24.9 million, and VLT revenue increased by 6% to €88.4 million.
However, sports betting revenue saw a slight decline of 0.7% to €180.1 million, again influenced by customer-friendly sports outcomes that affected the broader market in September. In contrast, iGaming revenues did not slow, climbing 14.4% to €89.8 million, driven by strong consumer demand for gaming experiences.
Profitability at OPAP also improved, with gross profit from gaming up by 4.8% to €253.4 million in Q3. While operating expenses increased by 10.9% to €111.6 million, the revenue growth ensured that EBITDA edged up by 0.5% to €214.2 million. Net profit for the quarter was €127.9 million, a 6.1% rise, and recurring net profit increased by 2.9% to €129.9 million.
For the year-to-date, gross gaming revenue for the nine months ending September 30 was 6.5% higher at €1.76 billion, with net gaming revenue up by 6.3% to €1.20 billion. Key figures include a 6.9% increase in gross gaming profit to €740.4 million and a 4.4% rise in EBITDA to €612.6 million. Net profit climbed by 6.3% to €361.3 million, while recurring net profit advanced by 4.4% to €363.3 million.
According to OPAP’s CEO, Jan Karas, “Profitability has increased alongside healthy margins and a strong cash position. These trends reinforce our confidence in reaching our FY2025 outlook and broader strategic objectives.” He also expressed enthusiasm for 2026 under the new Allwyn brand, promising a new era of growth, innovation, and premium gaming experiences.
4.2/5
