Lottomatica could consider further merger and acquisition activity after a record first quarter performance.
Lottomatica reported record first quarter revenues of 584.5 million euros ($659.8 million), driven by double-digit growth in its online and sports betting segments in the first quarter. Speaking to analysts after the results were published on Wednesday, the Italian provider did not rule out further mergers and acquisitions to expand its offering.
Turnover in the three months to March 31 was up 33% year-on-year, figures from Lottomatica show. This is the highest total turnover in the first quarter in the company's history.
The increase is attributable to growth in the Group's online and sports betting business. Both segments recorded a 59% increase in turnover in the quarter compared to the same period last year, with total bets also rising in both divisions.
CEO Guglielmo Angelozzi said the record quarter had "paved the way" for a successful 2025.
"We have made a very good start to the year," said Angelozzi. "The online market continues to grow very healthily. Payouts in the sports betting segment are also very good. They were above the normal level both online and in retail and well above the previous year's figure."
Can we expect more mergers and acquisitions from Lottomatica?
Given the good results in the first quarter, Angelozzi pushed for potential mergers and acquisitions. Last year, the group benefited from the acquisition of SKS365, which was completed in April 2024 . The resulting benefit was clearly visible in the results for the 2024 financial year .
While Angelozzi said the company has a "strong filter" in terms of potential new additions, it is considering several options.
"We continue to pay very close attention to the quality of the assets in complementary investments," he said. "We are becoming more selective in the quality of the assets we look at and remain disciplined on price."
"But there are certainly some interesting opportunities out there that we will continue to explore and take advantage of."
Chief Financial Officer Laurence Van Lancker added: "We are maintaining our M&A analytical framework, which covers the European B2C market and the secondary sectors in which we operate. I think there are clear opportunities that we continue to monitor."
I would say that nothing has changed in our international M&A approach. In Italy, we are continuing our strategy of targeted acquisitions. We are working on a pipeline and continue to maintain the same price discipline.
Elsewhere, Angelozzi told analysts that the operator was "resilient" in the face of possible future tariffs in the US.
"We are resilient to tariffs, that's self-explanatory really. But more importantly, we believe the company is generally very resilient to macroeconomic headwinds. This has been the case during previous economic shocks and recessions. Think of February, the global financial crisis and the recent period of hyperinflation," he said.
SKS365 continues to drive growth in the online and sports betting sector
Incidentally, it was the acquisition of SKS365, now called PWO by Lottomatica, that boosted online and sports betting turnover in the first quarter. Starting from the online business, which is now the Group's main source of revenue, an increase of 59% to 239.8 million euros was recorded.
The same acquisition led to equally strong growth in the sports betting business. Turnover rose by 59% year-on-year to 150.4 million euros, with Lottomatica also recording a positive sports betting payout in the quarter.
Gaming was the only segment that did not benefit from the deal, as revenue in the first quarter remained unchanged at EUR 195.5 million.
The effects of the acquisition were also clearly felt in the betting volume. Online betting rose by 46% to 7.36 billion euros, sports betting stakes climbed by 27% to 1.05 billion euros, while gaming stakes fell by 3% to 2.77 billion euros.
In addition, the increase in turnover led to a rise in adjusted EBITDA to EUR 220.5 million, an increase of 47% and a new record for Lottomatica in the first quarter. Adjusted EBITDA in the online segment rose by 55%, while it increased by 132% in sports betting. Adjusted EBITDA in the gaming segment fell slightly by 1% in the quarter.
Net profit exceeds 50 million euros
Operating costs increased across the board. Depreciation, amortization and impairments also increased, but financing expenses were reduced.
Pre-tax profit amounted to 77.8 million euros in the quarter, an increase of 49% compared to the previous year. The Group paid 26.3 million euros in taxes, leaving a net profit of 51.5 million euros, an increase of 71.9 percent compared to the previous year.
However, after deducting the net profit from non-controlling assets of 1.3 million euros, the net profit attributable to Lottomatica amounted to 50.3 million euros, an increase of 77.7%.
https://igamingbusiness.com/finance/quarterly-results/lottomatica-considers-ma-record-q1/
