Lottomatica Group (LTMC) Q1 2025 earnings summary

Executive summary

• Achieved record Q1 2025 results with revenues of €586 million, up 33% year-over-year, and Adjusted EBITDA of €220.5 million, up 47%, driven by strong online and sports franchise performance and successful PWO (SKS365) integration.

• Online market growth remained robust at 18% year-over-year, with the company outperforming the market and gaining share, while demonstrating resilience to macroeconomic headwinds.

• Integration of PWO is ahead of schedule, with 61% of targeted synergies secured and the total cost synergies target raised to €87 million by 2026.

• Over 50% of debt was refinanced, saving €24 million annually in interest, extending maturities to 2030+, and resulting in credit rating upgrades from S&P and Moody’s.

• A share buyback program up to 10% of shares (~€500 million) will commence in June 2025 over 18 months, reflecting disciplined capital allocation and focus on shareholder returns.

Financial highlights

• Q1 2025 revenues reached €586 million, up 33% year-over-year; Adjusted EBITDA rose 47% to €220.5 million, with margins increasing from 34% to 37.6%.

• Online segment revenues grew 59% year-over-year to €239.8 million; Sports Franchise revenues up 59% to €150.4 million; Gaming Franchise revenues stable at €195.5 million.

• 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 million from €110 million in Q1 2024, driven by EBITDA growth and scalable CapEx.

• Net financial debt reduced to €1,804.9 million, 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 continue growing in the mid-teens, sports franchise in mid-single digits, and gaming segment to decline mid-single digit.

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

• Online margin expected to normalize in the low 50% range, with potential to reach mid-50% in the medium term.

• Management confident in organic growth and business strength despite macroeconomic headwinds.