Allwyn has reported a strong first quarter, with revenue climbing 21% to over €1.2 billion as the newly merged gaming giant begins to flex its muscles on the global stage. That’s a significant jump from €991 million in the same period last year, driven primarily by the integration of PrizePicks and the combined scale of its merger with Greece’s OPAP.

Headline Numbers Tell the Story

Adjusted EBITDA rose 26% to €441 million, signalling healthy operational momentum across the portfolio. Adjusted profit attributable to shareholders reached €169 million, up 6% year-on-year. Allwyn is now the world’s second-largest listed gaming entertainment company.

The PrizePicks acquisition deserves particular attention. North America revenue surged from €60 million to €239 million in just one quarter, as the prediction markets platform contributes a full quarter’s results for the first time. This segment is now a meaningful contributor to group performance and really underlines the strategic value of bringing DFS and prediction markets under one roof.

The Cost of Expansion

There’s a flip side to the growth story. Earnings Per Share dropped sharply, falling 38% from €0.38 to €0.20. Admittedly, this largely reflects the dramatic increase in shares outstanding following the OPAP merger. The weighted average share count more than doubled from 358.6 million to 794.8 million.

Finance costs also moved in the wrong direction. They climbed 68% to €94 million as the company services higher debt taken on for the PrizePicks acquisition and LottoItalia license renewal. That’s a €38 million headwind management will need to manage carefully as they integrate these deals.

UK Lottery: Short-Term Pain, Long-Term Gain

The National Lottery segment showed some weakness, with Adjusted EBITDA falling from €9 million to €4 million. Lottery sales dipped and technology upgrade costs weighed on the division’s earnings. This appears to be temporary disruption, though, ahead of a significant format change.

Allwyn is introducing a new National Lottery format on June 7. Two chances to win per £2 ticket. Double the expected number of annual millionaires. The company is also launching UK Powerball at £4 per entry, giving British players access to US jackpots. Early indications suggest these changes could revitalise what remains a crown jewel asset.

Legal Victory Clears the Decks

The High Court’s decisive rejection of Richard Desmond’s legal challenge against Allwyn’s National Lottery licence removes a significant overhang. The court ordered Desmond to pay substantial costs, potentially totalling £40 million, after dismissing his claims that the tender process was unfair.

This outcome vindicates both Allwyn and the UK Gambling Commission, which had seen its own legal costs double during the dispute. For the industry, it underscores the robustness of the regulatory process and provides clarity for major licence holders.

Shareholder Confidence and Capital Discipline

Allwyn’s announcement of a €150 million share buyback programme signals management confidence in the combined entity’s growth trajectory and cash generation potential. Meanwhile, some shareholders who opposed the OPAP merger exercised exit rights worth €456 million in April. A modest figure that suggests broad acceptance of the deal.

The first quarter results paint a picture of a company navigating the complexities of major integration whilst maintaining revenue momentum and profitability. The real test will be whether Allwyn can realise the synergies it’s banking on without derailing its existing operations. Early signs are encouraging.

What the team thinks

Baz Hartley says:

While Allwyn’s 21% revenue bump is genuinely impressive and the OPAP merger clearly delivers the scale they promised, I’d want to see how these numbers break down between their core lottery operations and the PrizePicks acquisition, because that’s where we’ll find whether this growth is sustainable or just a one-time integration boost. The adjusted EBITDA climb to €441 million is encouraging, but what really matters to players is whether this newfound scale translates into better odds, fairer terms, and less aggressive bonus mechanics, or if it simply means more resources dedicated to sharper marketing to acquire customers. Carl’s missed the consumer angle here, which is fair enough for a business story, but I’d be pressing Allwyn on what this consolidation means for player protection standards across their combined operations.