Lottomatica Group Reports Strong Revenue and Earnings Growth After IPO

The Lottomatica Group, Italy’s largest gambling company, has reported strong performance in its online gambling sector, leading to significant revenue and earnings growth in the first full quarter following its initial public offering (IPO). The company generated €2.8bn ($3.0bn/£2.4bn) in gross gambling revenue in the first nine months of the year, with a particularly strong period from June to September, just weeks after its debut on the Milan Euronext following its €2.26bn IPO.

This continued strong performance has resulted in the company confirming its fiscal year 2023 guidance, which was raised in the second quarter. Lottomatica expects revenue of between €1.63bn to 1.69bn and adjusted EBITDA of €570m to €590m. The company reported a 7% increase in gross gambling revenue compared to the same nine-month period in 2022 pro forma, with online market share rising to 21.2%.

Lottomatica’s total online market share increased by 3.8pp compared to 2022, with its iGaming market share reaching 21.7% and its iSports reaching 20.4%. The company’s online brands include Lottomatica, Better, Goldbet, and Betflag, which it acquired for €310m last year.

The company’s total bets also increased by 19% pro forma and 34% on a reported basis, with the online segment outperforming and seeing a 37% increase in bets compared to the same period in 2022 pro forma. This led to a 30% increase in online revenue, reaching €374.0m for the nine months, driven by strong double-digit performance in the third quarter.

While sports franchise revenue saw a 10% increase to €277.4m, gaming franchise revenue was up 3% to €543.5m, although Q3 revenues decreased by 3% compared to the same period in 2022 due to the removal of Covid-related restrictions last year.

Despite increased costs in areas such as cost of sales and personnel, Lottomatica’s adjusted EBITDA reached €426.4m, a 15% and 25% increase by pro forma and reported, respectively. This growth, along with higher takings, led to a 15% increase in profit before tax to €129.0m.

Guglielmo Angelozzi, CEO of Lottomatica, expressed confidence in achieving their fiscal year 2023 guidance and continuing their strategy of organic and M&A growth. The company’s strong performance in the online gambling sector has been a key driver of their revenue and earnings growth, positioning them as a leader in the industry.

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