Lottomatica Reports Mixed Q1 2024 Results
Published: April 30, 2024 | Author: Ron Clarke
Lottomatica Group S.p.A., a leading Italian gaming and lottery operator, today released its financial results for the first quarter of 2024, showcasing a blend of revenue growth and declining profitability.
According to the report, Lottomatica’s revenue rose by 4% year-over-year to €440.1 million, driven by a total Gross Gaming Revenue (GGR) of over €1.01 billion – a slight 1% increase from Q1 2023. Despite the revenue growth, the company’s Adjusted EBITDA fell by 4% to €149.5 million. This decline was attributed to a shrinking EBITDA margin, which dipped from 36.9% in the previous year to 34% in the current quarter.
The company, which now holds a 21.6% share of the Italian online gambling market, demonstrated remarkable growth in its online segment. Online revenue jumped by 21% year-on-year to €150.4 million. This sector’s performance is particularly notable as total online bets surged by 36% to €5.06 billion, significantly contributing to the quarter’s total betting volume of €8.73 billion—a robust 20% increase from the previous year.
However, not all was positive in Lottomatica’s portfolio. The sports franchise segment reported a 15% decrease in revenue to €94.4 million due to unfavorable payouts during the quarter. In contrast, the gaming franchise segment reported a 4% revenue increase to €195.3 million, underscoring a mixed performance across different business areas.
Following the financial overview, Lottomatica’s CEO, Guglielmo Angelozzi, emphasized the strategic significance of the company’s recent acquisition of SKS365, completed in April 2024. He noted that the acquisition strengthens Lottomatica’s position in the Italian market and is in line with their strategy to enhance their portfolio through targeted mergers and acquisitions. Angelozzi noted that the SKS365 acquisition is expected to make a significant contribution to the company’s revenue and EBITDA for the remainder of 2024.
Lottomatica has upgraded its revenue forecast for 2024, now expecting it to range between €2.02 billion and €2.07 billion, with Adjusted EBITDA anticipated to be between €680 million and €700 million. These projections include contributions from eight months of SKS365’s operations, expected to bolster the year’s outcomes substantially.
Despite the optimistic revenue forecasts, Lottomatica’s net profit experienced a significant downturn, dropping by 31.1% to €30.1 million. This decline was primarily due to escalated expenses across various categories, including a 7.2% increase in the cost of services and a 20.8% spike in finance expenses.
As the company looks forward to the UEFA EURO 2024 tournament, it sees a potent customer acquisition opportunity, which has been incorporated into its financial guidance for the year. Angelozzi expressed confidence in their strategic initiatives and the strength of their market position as they navigate through 2024, emphasizing the company’s readiness to capitalize on upcoming market opportunities.
Lottomatica’s detailed financial results and forward-looking strategies underscore its commitment to maintaining growth trajectories and enhancing shareholder value, despite the challenging economic backdrop and fluctuating market conditions.
