Lottomatica Group (LTMC) Q4 2025 earnings summary

Executive summary

• EBITDA grew 21% year-over-year, with adjusted net profit up 45%, driven by organic growth, optimization, and successful PWO integration, which achieved €87–90 million in synergies, 34% above initial targets.

• €375 million returned to shareholders in 2025 via €75 million in dividends and €300 million in buybacks, reflecting strong cash flow and balance sheet capacity.

• Over 50% of debt refinanced, reducing cost of debt to 5.3% and saving €24 million annually in interest.

• Market share gains of 1.2 points in 2025, with online market share at 31% and Sports Retail above 40%.

• Company entered FTSE MIB index, increasing stock liquidity; board independence rose to 73% after Apollo's exit.

Financial highlights

• Revenues rose 12% year-over-year to €2,255.3 million; adjusted EBITDA reached €856.2 million (+21%), with margin improving to 38.0% from 35.3% in 2024.

• Adjusted net profit increased to €369 million (+45% YoY), with adjusted net profit per share at €1.6.

• Operating cash flow grew 18% to €657.1 million; recurring and concession capex totaled €199 million.

• Net financial debt at year-end was €2,105.2 million, with net leverage at 2.4x.

• FY 2025 bets collected: €44.7 billion, up 14% year-over-year.

Outlook and guidance

• FY 2026 guidance: revenues €2,390–2,460 million, adjusted EBITDA €940–980 million.

• Recurring capex expected at €85–90 million; concession capex at €78 million.

• Dividend proposal of €0.44 per share (~€111 million), with authorization sought for up to 12.5% share buyback (~€700 million over 18 months).

• Capital allocation policy targets 30% payout of adjusted net profit and net leverage of 2.0–2.5x.

• Online expected to remain the main growth engine, with iGaming growth in the mid-to-high teens.