Lottomatica Group (LTMC) Q2 2024 earnings summary

Executive summary

• Achieved record online market share in Q2 2024, with all brands growing and outperforming the market.

• Q2 2024 delivered strong results, with Adjusted EBITDA up 17% year-over-year and normalized EBITDA up 18%.

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

• Upgraded FY 2024 guidance for Adjusted EBITDA to €700–730 million and revenues to €2,030–2,080 million.

• Major acquisitions included SKS365 (€621.5 million) and several bolt-on deals, expanding the online and retail footprint.

Financial highlights

• H1 2024 revenues reached €931.8 million, up 14% year-over-year; Q2 revenues were €491.7 million, up 24%.

• Adjusted EBITDA for H1 2024 was €317.3 million (+6% year-over-year); Q2 Adjusted EBITDA was €167.8 million (+17% year-over-year).

• H1 2024 Adjusted Net Profit was €105.3 million, down from €121 million in H1 2023.

• Operating cash flow for H1 2024 was €228 million, down from €256.9 million in H1 2023 due to higher concession payments.

• Net financial debt as of June 30, 2024, was €1,913.1 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.

• Incremental bolt-on investments of €35 million expected in 2024, with €20 million Adjusted EBITDA run rate anticipated in 2025.

• CapEx guidance for recurring, concession, and deferred consideration confirmed; additional €35 million for bolt-ons in 2024.

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