Lottomatica Group (LTMC) Q3 2024 earnings summary

Executive summary

• Q3 2024 Adjusted EBITDA rose 30% year-over-year to €165.8–166 million, driven by robust online growth and successful SKS365 integration, with synergy targets increased to €75 million and about 50% already secured.

• Revenues for the first nine months of 2024 reached €1,417.4 million, up 18.6–19% year-over-year, with strong contributions from the Online segment and SKS365 acquisition.

• Online market share hit 30% in Q3, with sports franchise market share at 42%, maintaining market leadership.

• Guidance for 2024 confirmed: revenues €2,030–2,080 million and Adjusted EBITDA €700–730 million.

• Net profit for 9M 2024 was €57.0 million, down from €67.3 million in the prior year, mainly due to higher finance expenses and non-recurring costs.

Financial highlights

• Group bets for 9M 2024 reached €27.8 billion, up 28% year-over-year; online bets grew 48%.

• 9M 2024 revenues were €1,417.4 million, up 18.6–19% year-over-year; Q3 revenues were €485.6–486 million, up 30%.

• Adjusted EBITDA for 9M 2024 was €483.1 million (+13%); Q3 Adjusted EBITDA was €165.8–166 million (+30%).

• Adjusted Net Profit for 9M 2024 was €160.6 million; Q3 Adjusted Net Profit was €55.3 million, up €16.8 million year-over-year.

• Adjusted EBITDA margin for 9M 2024 at 34.1% (down from 35.7%).

Outlook and guidance

• 2024 guidance confirmed: revenues €2,030–2,080 million and Adjusted EBITDA €700–730 million, assuming normalized sports betting payout.

• Incremental run-rate effect from SKS365, synergies, and bolt-ons expected to add ~€90 million, not included in current EBITDA guidance.

• Q4 expected to benefit from SKS365 contribution, normalized payout, and bolt-on growth; EBITDA expected to exceed €200 million.