Lottomatica has posted revenue of €587.7m (£500.8m) for Q1 2025, representing a 33% year-on-year (YoY) increase in what was a record opening quarter to the year for the Milan-listed company.
The Italian operator also reported adjusted EBITDA of €220.5m, with the metric seeing a steep climb of 47% YoY, alongside a corresponding margin of 37.6%, a slight improvement from Q1 2024’s margin of 34%.
The company’s online division contributed the lion’s share of Lottomatica’s topline figure, generating €239.8m for the three months ending 31 March, marking 59% YoY growth for the segment.
The improvement was attributed to several key factors, including market share growth across all product segments, as well as the impact of the SKS365 acquisition, which has since rebranded to PWO.
Lottomatica significantly boosted its market share via the €639m deal in April 2024, that saw the operator fend off interest from Flutter in the process.
On PWO, the business said it had identified a further €12.5m in synergies, with 61% of total synergies having been secured to date.
Within the online segment of the business, Lottomatica produced adjusted EBITDA of €128m.
The operator’s retail gaming arm ranked second in terms of revenue contribution at €195.5m, though that figure was flat when compared to the opening three months of last year.
On the retail sports betting front, the division amassed €150.4m in revenue for the quarter, a 59% YoY climb, a rise also aided by the PWO acquisition alongside operator-friendly sports results.
Retail sports adjusted EBITDA was up 132% to €45.7m, while gaming retail adjusted EBITDA was down 1% to €46.4m.
Total stakes came in at €11.2bn, marking a 28% YoY rise, while online bets totalled €7.4bn, up 46% YoY, contributing the majority of the metric with just over 50% of all bets placed coming online.
As of the end of Q1 2025, Lottomatica reported online market share of 30.8%, with the operator overseeing its eponymous brand Betflag, as well as Goldbet in the Italian market.
Breaking that total down by vertical, the operator boasts online sports betting market share of 31.8%, while its igaming division has a 30.3% snare on the sector.
The firm said that overall market share had risen 1.6 percentage points YoY, while sports was up 0.9 percentage points and igaming rose 2.1 percentage points.
In response to its record-breaking Q1, Lottomatica has reaffirmed its guidance for fiscal year 2025, with the company expecting revenue to fall between €2.32bn and €2.37bn, alongside adjusted EBITDA of somewhere between €840m and €870m.
Reflecting on the quarter, Lottomatica CEO Guglielmo Angelozzi explained: “We are off to a great start of the year, registering our best Q1 results ever and paving the way for a successful 2025. The integration of PWO proceeds at speed and additional synergies have been identified.
“Market trends support our organic growth path and we feel confident in the strength of our business, even against the current macroeconomic environment.”
The company also announced its plans to initiate a share buyback programme of up to €500m from June of this year and lasting for a period of 18 months.
Angelozzi shed further light on the scheme, noting: “Finally, in light of our strong balance sheet and cash flow generation, we will start the buyback programme of up to €500m in the next 18 months, which will continue to compete with M&A and other capital allocation opportunities, with a view to maximise shareholder returns.”
The strong Q1 display has not yet had much of an impact on Lottomatica’s share price, with the firm’s stock showing a marginal 0.19% improvement in early trading today to sit at €20.90 per share.
The post Lottomatica posts record Q1 results and reaffirms online market share dominance first appeared on EGR Intel.
Italian operator sees significant climbs in revenue and adjusted EBITDA as the impact of the SKS365 acquisition continues to take shape
The post Lottomatica posts record Q1 results and reaffirms online market share dominance first appeared on EGR Intel.