Lottomatica Announces Q1 Profits Rise, Initiates Bond Sale

Lottomatica, the Italian iGaming company recently introduced to the market, unveiled its increased net profits and revenue for Q1 2023 while also reasserting its 2023 financial projections.

The company reported a net profit of 46.4 million euros ($51.1 million) for the first quarter of the year, showing a significant increase from 34.6 million euros reported in the same period the previous year. Concurrently, revenues saw a rise to 424.8 million euros, up from 355.7 million euros.

For 2023, Lottomatica projects revenues between 1.57 to 1.7 billion euros and expects its adjusted EBITDA to fall within the range of 550 to 570 million euros.

In addition to its financial performance, Lottomatica has initiated the sale of 1.115 billion euros in bonds due in 2028, according to a lead memo sighted by Reuters. The price on the senior secured fixed rate bond is guided in the mid 7% region, while the senior secured floating rate bond price is projected at 425-450 basis points over Euribor and offered at 98-98.5 cents on the euro.

The revenue generated from these new bonds will primarily fund the redemption of notes due in 2025, as well as to cover costs associated with Lottomatica’s recent IPO, marking the largest in Europe so far this year.

Lottomatica reported its return to the Borsa Milan with record results across its core business units. The iGaming operator’s consolidated betting volume rose to €7.3bn, a 33% increase on 2022 comparisons. In addition, Lottomatica’s units combined to produce a gross gaming revenue of €442m, showing an uplift of 20% on Q1 2022 results. This boost reflects the successful acquisition and integration of the BetFlag sportsbook, contributing to an ‘enhanced performance’ of ‘€1bn in consolidated bets’.

The company noted that its online segment registered the highest growth, with revenues surging by 40.1% to €124m. The sports franchise closely followed, increasing its revenue result by 18.4% to €110m. This period marked Lottomatica’s continued dominance in the iSports and iGaming sectors, seeing its Italian market shares rise to 18.1% and 18.9% respectively.

Lottomatica’s gaming franchise unit (retail gaming) also reported a 4% revenue growth to €188m (Q1 2022: €170m), showcasing its robust recovery post-COVID.

The company’s adjusted EBITDA stood at €156m, up 24% on 2021 comparisons, with all units contributing to a positive EBITDA outcome. Lottomatica declared an adjusted net profit increase of 36% to €63m, while operating cash flow rose by 27% to €138m. As of March 31, 2023, the company’s net financial debt was at €1.6bn, a reflection of the Group’s disciplined financial management and potent cash generation.

In summary, Lottomatica’s Q1 performance underscores a robust start to 2023 and the company’s positive market positioning within the iGaming industry. These figures demonstrate the company’s capacity to thrive in a highly competitive marketplace and indicate a promising future as Lottomatica continues to advance its strategic objectives.

Lottomatica President Guglielmo Angelozzi commented, “We started the year with a record performance, continuing in April and providing the base for a solid performance in 2023.

“This is also thanks to the turnaround of and, which we migrated to our technology and product stack last summer. I want to express my gratitude to all the colleagues for these tremendous results achieved thanks to their incredible dedication and efforts.”

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