Lottomatica Group (LTMC) Q1 2025 earnings summary

Executive summary

• Achieved record Q1 2025 results with Adjusted EBITDA of €220.5 million, up 47% year-over-year, and revenues of €586 million, up 33% compared to Q1 2024, driven by strong online and sports franchise performance and PWO integration.

• Online market in Italy grew 18% year-over-year, with the company outperforming the market and gaining share.

• Platform migration and integration of acquired brands, including PWO, are progressing ahead of schedule, with additional cost synergies identified and target raised to €87 million by 2026.

• Continued resilience to macroeconomic headwinds, with the Italian gaming market quickly recovering to pre-pandemic levels and limited impact from inflation.

• Announced €500 million share buyback program to commence in June 2025, over 18 months.

Financial highlights

• Revenues reached €586 million (+33% YoY), with Online segment at €239.8 million (+59% YoY), Sports Franchise at €150.4 million (+59% YoY), and Gaming Franchise at €195.5 million (flat YoY).

• Adjusted EBITDA rose to €220.5 million (+47% YoY), margin improved to 37.6% from 34.0% YoY.

• Adjusted Net Profit for Q1 2025 was €94.7 million, up from €49.7 million in Q1 2024; reported net profit reached €52 million.

• Operating cash flow increased to €184.4 million from €110.1 million year-over-year.

• Net financial debt reduced to €1,804.9 million as of March 31, 2025, with net leverage at 2.1x LTM run-rate Adjusted EBITDA.

Outlook and guidance

• FY 2025 guidance confirmed: revenues of €2,320–2,370 million and Adjusted EBITDA of €840–870 million.

• Online market expected to grow in the mid-teens, sports franchise in mid-single digits, and gaming to decline mid-single digits.

• Full run-rate synergies from PWO integration expected by 2026, with 61% already secured.

• Online margin expected to move from low 50% to mid-50% over the medium term.

• Financial policy targets net leverage of 2.0–2.5x and dividend payout of 30% of adjusted net profit.