Lottomatica Posts Strong Q1 Results, Updates Guidance after SKS365 Takeover

The leading operator with a strong presence in Italy and across Europe, Lottomatica, released its latest financial update, uncovering details about its performance for the first quarter of this year. On Tuesday, the company disclosed details regarding its latest interim financial report, covering the three months ended March 31, 2024.

In the first quarter of 2024, Lottomatica reported €8.7 billion ($9.28 billion) in bets. A year-over-year comparison to the Q1 2023 result showed that the recorded bets marked a solid increase of 20%. The company also posted gross gaming revenue (GGR) of €1.01 billion ($1.08 billion), a result that showed a 1% year-over-year increase.

Further details disclosed by Lottomatica revealed that its revenues in Q1 this year hit €440.1 million ($469.9 million). Compared to the corresponding result for the same period in 2023, the latest result represented an increase of 4% or 16% at “normalized payout,” as explained by the company.

A breakdown provided by Lottomatica uncovered growth in the revenue from its online and gaming franchise segments, while sports franchise revenue marked a decrease year-over-year. Per the Q1 2024 financial update, the company’s online revenues hit €150.4 million ($160.6 million), up by 21% when compared to the first quarter in 2023. While gaming franchise revenue increased by 4% to €195.3 million ($208.5 million), the sports franchise revenue took a 15% hit, halting at €94.4 million ($100.8 million).

The Company Updated Its FY 2024 Guidance

Guglielmo Angelozzi, Lottomatica’s CEO, shared his excitement about the latest results, outlining that the company is on a strong path of organic growth. He acknowledged the exceptional performance of the company in terms of EBITDA and revenues.

Additionally, Angelozzi spoke about the successful completion of the acquisition of SKS365 recently. In the aftermath of the takeover, SKS365’s CEO, Alexander Martin, confirmed his intentions to step down from his role with the company late last month. Finally, Angelozzi said that Lottomatica upgraded its guidance, in light of the strategic takeover.

“We have successfully completed the acquisition of SKS365 in April 2024, therefore upgraded the guidance, and continue to execute on our strong pipeline of bolt-on M&A.“

Guglielmo Angelozzi, CEO at Lottomatica

Per the updated guidance, Lottomatica anticipates FY 2024 revenues between €2.02 billion ($2.16 billion) and €2.06 billion ($2.2 billion). On the other hand, the company expects adjusted EBITDA in the range of €680 million ($726.1 million) to €700 million ($747.4 million).

Focusing on market share, the company’s Q1 2024 report revealed an estimated total market share of 21.6%, representing an uptick of nearly 3% when compared to the same period last year. While the company’s iGaming market share stood at 21.8% in Q1 this year, the online sports betting market share was at 21.2%.