Lottomatica Group (LTMC) Q4 2024 earnings summary

Executive summary

• Achieved record FY 2024 revenues of €2,005 million, up 24% year-over-year, and normalized EBITDA of €739 million, both exceeding guidance; Q4 revenue growth accelerated to 34%.

• Online segment was the primary growth driver, with revenues up 50% and EBITDA up 40% year-over-year; online market share reached 30.9% in Q4.

• Integration of PWO contributed to results from May 2024, with €15 million synergies realized and a target of €75 million by 2026.

• Proposed dividend of €0.30 per share, totaling €75 million, and board seeking authorization for up to 10% share buyback over 18 months.

• Strong start to 2025 with online GGR up 72% and sports franchise GGR up 79% year-on-year in the first two months.

Financial highlights

• Adjusted EBITDA for 2024 was €707 million (+22% YoY), with a margin of 35.3%; Q4 EBITDA reached €224 million, up 45% year-over-year.

• Operating cash flow improved to €557 million; recurring and concession CapEx totaled €170 million.

• Net financial debt at year-end was €1,873 million, with net leverage at 2.4x run-rate adjusted EBITDA.

• Adjusted net profit was €254 million; net profit €103.8 million.

• FY 2024 bets totaled €39.2 billion (+30% YoY); online bets €24.5 billion (+51% YoY).

Outlook and guidance

• FY 2025 guidance: revenues €2,320–2,370 million; adjusted EBITDA €840–870 million.

• CapEx guidance: €85.5 million recurring, €105 million concession, with €22 million one-off for online concessions.

• Dividend policy maintained at 30% of adjusted net profit; buyback authorization requested.

• Continued focus on online growth, omnichannel strategy, and extracting synergies from PWO integration.

• Expect online to represent an increasing share of EBITDA, potentially reaching mid-50% margins in the medium term.