Lottomatica Group (LTMC) Q2 2024 earnings summary

Executive summary

• Q2 2024 delivered record online market share and 17% year-over-year EBITDA growth, with all brands outperforming the market.

• SKS365 integration is ahead of plan, with 40% of synergies secured and double the initial EBITDA contribution expected for 2024.

• FY 2024 guidance was upgraded for both revenues (€2,030–2,080 million) and Adjusted EBITDA (€700–730 million), reflecting strong operational execution and market growth.

• Continued product and technology innovation, including the launch of over 910 new casino games and enhanced personalization.

Financial highlights

• H1 2024 revenues reached €932 million, up 14% year-over-year; Q2 revenues were €492 million, up 24%.

• H1 2024 Adjusted EBITDA was €317 million (+6% year-over-year); Q2 Adjusted EBITDA was €168 million (+17%).

• H1 2024 Adjusted Net Profit was €105 million.

• H1 2024 operating cash flow was €228 million, with capex at €114 million.

• Net financial debt as of June 30, 2024, was €1,913 million, with leverage at 2.7x LTM run-rate Adjusted EBITDA.

Outlook and guidance

• FY 2024 revenue guidance raised to €2,030–2,080 million and Adjusted EBITDA to €700–730 million.

• Bolt-on acquisitions expected to contribute over €20 million run-rate EBITDA in 2024, with €35 million consideration paid in 2024.

• CapEx guidance for recurring, concession, and deferred consideration confirmed; recurring capex expected at €70–75 million (excluding SKS), with special growth initiatives of €30–50 million.

• Deferred consideration of €89 million and online concession payments postponed to 2025.