Allwyn International posted a 4% year-on-year increase in total revenue for the third quarter of its 2025 financial year, the company announced on Wednesday.
CEO Robert Chvatal highlighted that the group is poised for further growth in 2026 and beyond as it prepares to merge with OPAP.
In October, Allwyn confirmed plans to merge with OPAP, creating a combined business valued at €16 billion ($18.5 billion).
Under the terms of the deal, Allwyn will hold a 78.5% economic stake in the new company, with OPAP taking 21.5%.
Allwyn currently owns a 51.78% share of OPAP through its controlling shareholder KKCG, which initially invested in OPAP in 2013. The merger is expected to conclude in the first half of 2026.
“For Allwyn, this represents the natural next milestone in our journey, with a public market listing expanding our capital markets access to equity markets and elevating the profile of Allwyn’s global platform,” Chvatal said.
During the earnings call, he added that the agreements, combined with efforts to establish Allwyn as a consumer-facing brand, would set the stage for further growth and strategic progress.
“We see the introduction of a single brand as an important enabler of our growth strategy, allowing us to connect with new audiences in new and existing markets and to achieve marketing synergies across the group,” Chvatal said.
“Our progress so far this year reinforces the strength of our proven strategy and, looking forward, we are well prepared to deliver the next phase of our growth story and further strategic progress.”
Strategic M&A Moves
Allwyn has been active in mergers and acquisitions in recent months.
In September, the company agreed to acquire a 62.3% stake in daily fantasy sports operator PrizePicks for an initial cash consideration of $1.6 billion.
Earlier in the year, Allwyn also acquired a 51% majority stake in Logflex MT Holding Limited, the owner of online sports betting and gaming group Novibet.
The company has planned divestments of land-based casino assets in Germany and Australia, and it has acquired the remaining minority stake in online operator Stoiximan, which operates in Greece and Cyprus.
Lottery Remains the Top Revenue Driver
For Q3, Allwyn reported total group revenue of €2.20 billion, up 4% from the previous year.
Gross gaming revenue reached €2.12 billion, a 5% increase, while net revenue rose 5% to €1.02 billion.
Lottery remained the largest contributor at €551 million, up 7%, followed by VLT and casino revenue at €139 million, a 6% increase.
Sports betting revenue grew 3%, while iGaming operations contributed €120 million, up 2%. Total online net gaming revenue reached €343 million, an 8% rise.
Revenue from non-gaming activities remained flat at €84 million.
Continental Europe continued to generate the bulk of revenue at €729 million, up 6%, driven by strong lottery performance and solid growth in sports betting, VLTs, and casinos.
In the UK, where Allwyn operates the National Lottery, revenue rose 6% to €250 million, with online gross gaming revenue up 10% due to digital growth, EuroMillions jackpots, and targeted promotions.
North America showed the fastest growth, with revenue increasing 15% to €55 million, aided by the consolidation of Instant Win Gaming.
Earnings Impacted by External Factors
Despite revenue growth, adjusted EBITDA fell 8% to €374 million, largely due to lower contributions from equity method investees like Betano, affected by customer-friendly sports results.
Corporate cost changes also reduced earnings by €14 million year-on-year.
Year-to-date, total revenue reached €6.65 billion, a 6% increase, with gross gaming revenue at €6.39 billion, also up 6%.
Net revenue for the first nine months was €2.99 billion, 5% higher than last year, while adjusted EBITDA remained flat at €1.09 billion.
OPAP Q3 Performance
OPAP also reported Q3 growth, with gross gaming revenue up 6.6% to €602.9 million and net revenue rising 6% to €409.9 million.
Lottery performance, including the Tzoker game and Powerspin, contributed significantly, with lottery gross gaming revenue climbing 9.8% to €219.6 million.
Sports betting revenue fell slightly by 0.7% to €180.1 million, influenced by customer-friendly sporting results.
iGaming revenue grew 14.4% to €89.8 million, reflecting strong player demand.
Net profit for OPAP in Q3 was €127.9 million, up 6.1%, while recurring net profit increased 2.9% to €129.9 million.
Year-to-date figures showed gross gaming revenue of €1.76 billion, net revenue of €1.20 billion, and net profit of €361.3 million, up 6.3%.
“Overall, profitability has risen in tandem with healthy margins and a solid cash position,” OPAP CEO Jan Karas said.
He added, “These positive trends reinforce our confidence in achieving our outlook for FY2025, as well as our broader strategic and business goals.
“In this context, we are working toward a strong finish to the year and are looking forward to operating in 2026 under the new brand of Allwyn, which will mark a new era of growth opportunities, innovation and best-in-class gaming entertainment experiences for our customers.”
