Winvia Entertainment upgrades profit outlook after strong first half

What has Winvia announced?

Winvia Entertainment PLC has upgraded its full-year profit expectations after reporting higher revenue, earnings and cash generation for the six months ended 30 June 2026.

The AIM-listed entertainment group generated net revenue of £109.7 million, up 42.7% from £76.9 million. Adjusted EBITDA rose by a more modest 7.5% to £17.2 million, reflecting a deliberate increase in marketing and prize expenditure within its Prize Draw Competitions division.

Adjusted EBITDA is operating profit before interest, tax, depreciation, amortisation and selected adjusting items. It is useful for assessing underlying trading, although investors should also consider statutory profit and cash flow.

Statutory profit from operations increased by 142.3% to £12.6 million, while profit before tax rose by 193.2% to £12.9 million.

Management now expects full-year adjusted EBITDA to be ahead of current market expectations. Importantly, this upgrade relates to underlying trading and excludes any contribution from The Giveaway Guys and Win Life acquisition announced alongside the results.

The full figures are available in the original company announcement.

Winvia's key half-year figures

Metric	HY26	HY25	Change
Net revenue	£109.7 million	£76.9 million	42.7%
Adjusted EBITDA	£17.2 million	£16.0 million	7.5%
Profit from operations	£12.6 million	£5.2 million	142.3%
Profit before tax	£12.9 million	£4.4 million	193.2%
Basic and diluted earnings per share	10.0p	3.0p	Not disclosed
Net operating cash flow	£11.7 million	£2.4 million	Not disclosed
Net cash	£31.8 million	£29.9 million at FY25	6.4%
Interim dividend per share	5.0p	Nil	Not applicable

Operating cash conversion improved to 92.7%, compared with 45.0% a year earlier. That matters because it shows that a high proportion of operating profit is being converted into cash rather than remaining tied up in accounting earnings.

The Board has approved a 5.0p interim dividend. It is payable on 23 October 2026 to shareholders on the register on 9 October, with the shares trading ex-dividend from 8 October.

Online Gaming carried the first-half profit growth

Online Gaming was the standout division during the period.

Revenue increased by 54.6% to £88.7 million, while adjusted EBITDA almost doubled to £20.4 million from £10.4 million. Active customers rose by 37% to 1.3 million, and first-time depositors increased by 19% to 0.3 million.

Customer deposits by value more than doubled across the comparable six-month periods. Winvia reported growth across its own brands, white-label operations and business-to-business channel.

B2B deposits now exceed white-label deposits and represented more than 27% of total deposits processed through the platform. Management says this revenue requires limited additional operating expenditure, giving the division attractive operating leverage. In plain English, revenue can potentially rise faster than costs once the technology platform is in place.

This strong performance also helped offset the near-term pressure created by investment elsewhere in the group.

Prize Draw Competitions sacrificed short-term profit for subscriptions

The Prize Draw Competitions division presents a more complicated picture.

Gross revenue rose by 15.1% to £41.1 million and active customers increased by 11% to 1.1 million. However, adjusted EBITDA swung from a £6.2 million profit to a £1.0 million loss.

The main reason was marketing expenditure, which climbed to £14.0 million from £2.6 million. Competition prize costs also increased to £20.1 million from £16.2 million.

Winvia says this was planned investment intended to acquire higher-value customers and accelerate BOTB's transition towards recurring subscription revenue. BOTB Pass subscriptions represented more than 35% of monthly BOTB revenue and over 17% of divisional revenue by 30 June.

Based on customers acquired more than 12 months ago, the average one-year lifetime value to customer acquisition cost ratio is trending at around 8:1. This ratio compares the value generated by a customer with the cost of acquiring them.

The early second-half evidence is encouraging. Subscription revenue now exceeds BOTB's total prize costs, while the division achieved its best-ever monthly adjusted EBITDA in August. Management expects Prize Draw Competitions adjusted EBITDA to be trending close to £2 million per month during the fourth quarter.

That forecast is central to the investment case. The spending has clearly depressed first-half divisional profitability, so investors will want to see the projected operating leverage appear consistently rather than in a single strong month.

Acquisitions and refinancing increase the pace

Winvia completed the Rev Comps acquisition in July and migrated the business onto its technology platform. Management reported positive early indications of improved margins following the migration.

The company also launched Villa Win with Aston Villa Football Club. This is Winvia's first B2B prize draw partnership and had attracted more than 9,000 registered users since launching in September.

Separately, Winvia agreed to acquire The Giveaway Guys and Win Life for £19.1 million. This comprises £15.47 million payable at completion and £3.63 million deferred for 12 months, with a potential additional earnout linked to adjusted EBITDA. Completion is anticipated by the end of October 2026.

The group has also refinanced its banking facilities with Barclays. The package includes a £33 million three-year term loan, a £5 million revolving acquisition facility and an uncommitted option to increase the facilities by up to £15 million.

These developments support further expansion, but they also increase integration and execution risk. Investors can compare the latest update with Winvia's previous full-year results and growth strategy.

Risks investors should not overlook

The biggest operational question is whether prize draw subscriptions can generate enough lasting value to justify the sharp increase in marketing expenditure. New registrations fell by 13% and first-time players declined by 6%, reflecting management's deliberate focus on longer-term customer quality rather than headline acquisition volumes.

Comparisons are also not entirely like-for-like because the prior half-year included only three months of Click Competitions following its acquisition in April 2025.

Acquisition-led growth introduces further risks around integration, purchase prices and management capacity. Corporate costs have already increased to £2.2 million from £0.7 million following Winvia's transition to an AIM-quoted company.

There is also tax uncertainty. Winvia disclosed a contingent liability relating to whether UK VAT should apply to prize draw ticket sales. No provision has been recorded, and the potential financial outflow cannot currently be reliably estimated. The timing and final outcome are also uncertain.

Finally, the interim financial statements are unaudited and were not reviewed by the company's auditor.

What matters in the second half

This is a strong update overall. Online Gaming delivered substantial profitable growth, statutory earnings improved sharply, cash conversion strengthened and the Board approved an interim dividend.

The profit upgrade is particularly notable because it excludes the contribution from the latest acquisition. However, the second-half performance still depends heavily on Prize Draw Competitions converting first-half investment into sustained profitability.

The key figures to watch are BOTB subscription growth, monthly prize draw EBITDA, acquisition integration and any development concerning the potential VAT liability. If the division approaches the targeted £2 million monthly adjusted EBITDA run rate in the fourth quarter, the rationale behind the first-half spending will look considerably stronger.