Lottomatica Group Reports Strong H1 2024 Performance

Lottomatica Group S.p.A. has demonstrated continued strong performance in the second quarter of 2024, with adjusted EBITDA up by 17% compared to 2023. The company’s online market share has reached an all-time high, prompting an upgrade in their guidance for the full year 2024 to €700-730 million (£602 million/US$774 million) in adjusted EBITDA.

In the first half of 2024, Lottomatica achieved significant growth, with total bets amounting to €18.0 billion, a 23% increase from H1 2023. The company’s revenues for this period were €931.8 million, marking a 14% increase compared to the previous year, and a 20% increase at normalised payout. In the second quarter alone, revenues were €491.7 million, a 24% increase compared to Q2 2023. Online revenues grew by 37% in H1 2024, reaching €338.3 million, and by 53% in Q2 2024, reaching €187.9 million. The sports franchise contributed €213.7 million, a 4% increase compared to H1 2023, and €119.3 million in Q2 2024, a 26% increase from Q2 2023. The gaming franchise also showed growth, with revenues of €379.8 million in H1 2024, a 3% increase compared to the previous year, and €184.5 million in Q2 2024, a 2% increase from Q2 2023.

Adjusted EBITDA for H1 2024 was €317.3 million, a 6% increase compared to the same period in 2023, and a 21% increase at normalised payout. In the second quarter, adjusted EBITDA was €167.8 million, up 17% from Q2 2023. The company reported an operating cash flow of €228.0 million and an adjusted net profit of €105.3 million. Net financial debt stood at €1,913.1 million, equivalent to 2.7 times the last twelve months’ run rate adjusted EBITDA.

Lottomatica’s market share reached new heights in Q2 and June, with a total online market share of 29.1% in Q2, a 2.0 percentage point increase from Q2 2023. The iSports market share was 29.7% in Q2, a 1.5 percentage point increase, and the iGaming market share was 29.5% in Q2, a 2.4 percentage point increase.

Following strong organic growth in Q2, acceleration in cost synergies, and anticipated bolt-ons, Lottomatica has revised its guidance for fiscal year 2024. The company now expects revenues of €2,030 – 2,080 million, up from the previous forecast of €2,020 – 2,065 million. Adjusted EBITDA is projected to be €700 – 730 million, an increase from the previous estimate of €680 – 700 million. Capital expenditure for recurring and concession remains unchanged, with special growth initiatives and deferred considerations also confirmed, other than an increase in bolt-ons by €35 million in 2024, which is expected to contribute approximately €20 million in incremental adjusted EBITDA run rate in 2025.

The continued strong performance and strategic revisions underscore Lottomatica Group’s commitment to maintaining growth and enhancing its market position in the iGaming industry.

Guglielmo Angelozzi, Chief Executive Officer of Lottomatica Group, commented: “In the second quarter of 2024 we have continued our path of organic growth, supported by solid market share gains in Online leading to a sustained double-digit growth in Revenues and EBITDA. We have successfully completed the acquisition of SKS and are progressing with the integration at a fast pace, having secured to date c. 40% of the synergies announced. Also, we have opportunistically refinanced notes worth euro 900 million in May resulting in material interest savings. In light of the strong performance, the delivery in cost synergy realisation, and expected bolt-on acquisitions, we upgrade our Guidance for FY 2024”.