Italian iGaming content provider Lottomatica Group SpA (LTMC) announced its Q1 results on Wednesday. The company reported 33.1% YoY growth with a total revenue of €585.7 million. This could encourage Lottomatica to consider further M&A moves that align with its plans for the near future.
Key Points to Consider
- Lottomatica shares gained 0.38% on presentation day, trading at €20.86.
- The company refinanced €1.1 billion of debt with a deadline for 2030 and beyond.
- Lottomatica’s Gross Gaming Revenue (GGR) increased by 30.8% in Q1 2025, compared to the Italian gaming market gaining 18% GGR during the same tenure.
A Brief Highlight of Lottomatica’s Quarterly Profits
Lottomatica’s Q1 performance is leagues ahead of its rivals in the Italian iGaming market. The company’s share prices went up by 0.38% to €20.86 on May 7, which reflects the high confidence investors have in the brand’s growth trajectory. The Italian gaming market has been on a roll lately, growing exponentially at the rate of 18% in the quarter ending March 31, 2025.
Lottomatica capitalised on this opportunity to strengthen its grip on the Italian market. The company’s staunch reliance on omnichannel growth and strategic investments in customer engagement technology has been crucial in getting positive results. According to its financial report, there was a 33% increase in revenue, totalling 586 million compared to €440 million recorded in Q1 2025.
The adjusted EBITDA was even better, jumping 47% to €220 million from €150 million recorded during the previous year. Additionally, Lottomatica’s online GGR growth stood at 30.8%, which was significantly higher than the 18% industry average. Increased sports betting revenue was the primary factor behind the growth. The actual payout rate from its online sports betting business stood at 84.1% compared to the normalised rate of 85.5%.
Similarly, the actual payout from its retail business was 80.5%, compared to the 78.8% standardised rate. Operating cash flow also increased from €110 million in Q1 2024 to €184 million in the latest quarter. Lottomatica can hence use the additional cash reserves to fund its expansion goals and reward shareholders.
Strategic Innovations Leading into the Future
Lottomatica announced several strategic steps for scaling operations and improving revenue streams moving forward. For starters, they set a higher synergy target at €87 million for 2026, up from the previous target of €75 million. Better yet! 61% of their synergy goals have already been met.
In April 2025, Lottomatica refinanced €1.1 billion in debt, extending all the deadlines for maturity beyond 2030. The company issued Senior Secured Notes maturing in 2031 with guaranteed annual returns of 4.875%. The company claims this will save approximately €24 million per annum.
Commenting on the positive turn of events, Guglielmo Angelozzi, Group CEO at Lottomatica, said:
We began this year on a positive note, recording our highest first-quarter profits ever. We hope to maintain this track record through the rest of the year. The decision to integrate PWO into our existing systems has paid out, as evident from our organic business growth. We feel confident in our plan, the strength of our business, and the overall iGaming environment. Additionally, we have successfully refinanced a €1.1 billion debt, saving us interest costs. Based on our strong balance sheet, we have decided to launch a share buyback program of up to €500 million for the next 18 months. This will allow us to realign capital allocation with other opportunities, including mergers and acquisitions with the aim to maximise shareholder returns.