Lottomatica has reported revenue of €602.3m (£519.9m) for the first quarter of 2026, with online gains offsetting a flat performance in the Italian firm’s retail arm.
The figure represents a 3% increase year on year (YoY), with the strong performance of the company’s PWO brand, which was rebranded from SKS365 in 2025 after its acquisition, cited as a mitigating factor.
Revenue from the online segment amounted to €264.7m, up 10% compared to the corresponding period last year.
Management said revenue grew in tandem with the overall Italian online market, with the business also taking market share across “all product segments and brands”.
However, retail gaming revenue remained flat during Q1 compared to 2025 at €195.1m and retail sports betting revenue decreased 5% YoY to €142.4m.
This was due to “less favourable” sports betting payouts than the company experienced in Q1 2025.
The operator handled €12.4bn in stakes during the quarter, up 11% YoY. Online bets increased 15% to €8.5bn, retail sports wagers rose 12% to €1.2bn, while retail gaming stakes totalled €2.7bn.
Lottomatica highlighted PWO’s increased market share in Italy, which debuted its re-regulated market in November 2025, as the main driver for the gains. Lottomatica completed its acquisition of the sports betting operator in April 2024 in a €639m deal.
Total group online market share was 31.8%, up 1.4 percentage points versus Q1 2025. Online sports betting market share increased to 32.5%, while igaming market share jumped 1.9 percentage points to 32.2%.
PWO specifically took 5.5% of the igaming market in Q1, with bosses noting that half of the market share lost during the transition had been recovered.
The firm noted that market share for both online and land-based sports betting reached 9%, marking a return to the levels experienced pre-migration of the SKS365 platform.
Group adjusted EBITDA for Q1 came in at €235.5m, an increase of 6.9% YoY. Net profit for Q1 totalled €69.3m, up 34.6% YoY.
Lottomatica chair and CEO Guglielmo Angelozzi said: “In the first quarter of 2026 we continued to see strong momentum of our addressable markets, supporting a double-digit growth YoY in adjusted EBITDA of 22%, on a normalised basis.
“PWO continues to perform well having fully recovered its market share in total sports compared to pre-migration levels, and with a good progression in igaming.
“With a positive outlook for FY 2026, we expect to close the FY 2026 adjusted EBITDA at the top end of the guidance and to return up to €1bn to shareholders in 2026 and 2027, starting this week with the launch of the newly approved buyback programme. Finally, we thank all our shareholders for their continued support.”
Lottomatica’s share price currently sits at €26.15 at the time of writing, up 6.5% from market open.
The earnings presentation also highlighted that the introduction of prediction markets is not on the horizon in the Italian market, with the vertical prohibited by the country’s laws with “no workaround possible”.
A Lottomatica statement read: “Simply put, prediction markets can be a very effective way to compete in markets where regulation is unclear, there are unregulated jurisdictions that prediction markets can pre-empt, and the consumer is relatively early stage and oriented towards single and pre-match.
“For the very same reasons, prediction markets are totally unfit for markets like Italy or many other European countries with similar structure.”
Last month, Polymarket secured a multi-year front-of-shirt sponsorship with Serie A side SS Lazio in a deal worth $22m.
The post Lottomatica records €602m in Q1 revenue boosted by online segment bounce first appeared on EGR Intel.
Figure represents a 3% increase year on year, as flagship brand PWO continues to increase its market share in Italy
The post Lottomatica records €602m in Q1 revenue boosted by online segment bounce first appeared on EGR Intel.