Italy's Lottomatica Reports Strong Growth in Gambling Revenue

Lottomatica's sustained strong performance has resulted in the confirmation of its fiscal year 2023 guidance, which was raised in Q2. The company expects to achieve revenues ranging from €1.63 billion to €1.69 billion and adjusted EBITDA of €570 million to €590 million.

In comparison to the same nine-month period in 2022 pro forma, Lottomatica's Gross Gambling Revenue (GGR) increased by 7%, accounting for the addition of Betflag in late 2022. On a reported basis, GGR rose by 10%, excluding Betflag's estimated contribution.

Lottomatica has significantly expanded its online market share by 3.8 percentage points compared to 2022, reaching 21.2%. Within this, iGaming market share increased by 4.5 percentage points, reaching 21.7%, while iSports also saw growth of 3.1 percentage points, reaching 20.4%. The company's online brands include Lottomatica, Better, Goldbet, and Betflag, which was acquired for €310 million last year.

Lottomatica's online segment outperformed other divisions, with total bets worth €21.7 billion, a 19% increase compared to the previous year pro forma and a 34% increase on a reported basis. For the nine months, revenues, excluding payouts, reached €1.9 billion, up 12% pro forma. In this category, the online segment surged by 30%, reaching €374.0 million. The third quarter saw a robust double-digit performance, with revenues up 40% compared to Q3 2022 pro forma, when excluding the impact of unfavorable payouts.

Lottomatica's sports franchise also experienced double-digit growth, increasing by 10% to €277.4 million. The gaming franchise posted a 3% increase, reaching €543.5 million, although Q3 revenues decreased by 3% compared to Q3 2022, mainly due to the removal of Covid-related restrictions in the same period last year.

Lottomatica reported an adjusted EBITDA of €426.4 million, showing a 15% increase in pro forma and 25% in reported figures. The adjusted EBITDA margin reached 35.7% on revenues, compared to 34.8% in the same period pro forma of 2022, driven by the higher contribution of the online business. Despite growing costs in areas such as sales, personnel, and finance expenses, the double-digit revenue growth led to a 15% increase in profit before tax, reaching €129.0 million.

Guglielmo Angelozzi, CEO of Lottomatica, stated, "In this third quarter, we have consolidated our leadership position, and our online business has continued to grow market share across all product segments and brands. We are on track to achieving our guidance for fiscal year 2023 and to continue to execute our strategy of organic and M&A growth."