Lottomatica Group (LTMC) Q3 2025 earnings summary

Executive summary

• Achieved robust financial and competitive performance in Q3 and 9M 2025, with Adjusted EBITDA up 18% in Q3 and 28% for the nine months, and record online market share reaching 32.0% in September 2025.

• PWO integration completed ahead of plan, with two-thirds of expected synergies to be realized in 2025 and PWO brand market share rebounding to 6.0% in September.

• Product and tech innovation accelerated, with a significant increase in exclusive and bespoke content, focus on omnichannel experience, and enhanced customer engagement.

• Disciplined capital allocation prioritized, with excess cash directed to share buybacks, dividends, and selective M&A, emphasizing value creation and shareholder returns.

• Major refinancing in May 2025 included €1.1 billion in new notes and early repayment of previous notes, improving the debt profile.

Financial highlights

• Nine-month 2025 revenues reached €1,640 million, up 16% year-over-year; Adjusted EBITDA at €617 million, up 28%, with margin improving to 37.6%.

• Q3 2025 revenues were €511 million, with Adjusted EBITDA of €195 million, reflecting 18% growth year-over-year.

• Net profit for 9M 2025 was €98.3 million, nearly doubling year-over-year.

• Operating cash flow for 9M 2025 was €504 million, up from €353 million in the prior year.

• Net financial debt as of 30 September 2025 was €1,856 million, with net leverage at 2.1x.

Outlook and guidance

• Full-year 2025 guidance: revenues of approximately €2,270 million and Adjusted EBITDA of approximately €860 million, assuming normalized Q4 payout.

• Further improvement expected from PWO integration, product innovation, and favorable regulatory environment, with new online concession starting November 2025 and market share gains anticipated in 2026.

• Online margins expected to normalize at mid-50% range, with Q3 margin above trend due to timing of synergies.

• Free cash flow profile expected to improve further in 2026, with fewer non-recurring items and lower financing costs.