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  • Q1 2024: Lottomatica reports EBITDA dip despite 4% revenue growth
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Italian gaming and lottery operator Lottomatica reported a 4% year-on-year revenue rise to €440.1m in Q1 2024.

That revenue was generated on the back of €1.01bn in total GGR during the quarter, marking a modest 1% increase compared to the same period in 2023.

The company stated that it now holds a 21.6% share of the Italian online gambling market.

Adjusted EBITDA for the quarter stood at €149.5m, which reflected a 4% decrease from Q1 2023.

That drop came about as the operator’s adjusted EBITDA margin fell to 34%, down from 36.9% in the same period of 2023.

However, Lottomatica said that Q1 2024 revenue grew 11% compared to Q1 2023 at a normalised payout rate, driven by the overall increase in productivity of the network.

Normalised payout calculates Lottomatica’s Q1 earnings on the premise of a sports betting payout rate of 79.7% in retail locations and 86.4% from betting online.

Online surpasses expectations

Revenue from Lottomatica’s online segment increased 21% year-on-year to €150.4m in Q1 2024.

The sports franchise segment, however, reported a 15% year-on-year decrease to €94.4m due to “unfavourable payouts” in the first quarter.

Lottomatica’s gaming franchise, meanwhile, generated a 4% year-on-year revenue increase to €195.3m in.

Moreover, Lottomatica recorded €8.73bn in total betting volume for the quarter, marking a 20% increase compared to the previous year.

In terms of volume, the online sector also surpassed expectations, experiencing annual growth of 36% as total bets reached €5.06bn.

“In the first quarter of 2024 we have continued our path of organic growth, also supported by solid market tailwinds, with revenues and EBITDA achieving double digit growth year-on-year (at normalised payout),” said Lottomatica Group CEO Guglielmo Angelozzi.

“We have successfully completed the acquisition of SKS365 in April 2024, therefore upgraded the guidance, and continue to execute on our strong pipeline of bolt-on M&A.”

Lottomatica completed the acquisition of SKS365 last week.

2024 outlook

The company now predicts revenue for full-year 2024 to come in between €2.02bn and €2.07bn, with adjusted EBITDA of between €680m and €700m.

The forecast includes eight months of contribution from SKS365, with estimated full-year adjusted EBITDA for the business of approximately €80m.

This figure contrasts with SKS365’s reported adjusted EBITDA of €72m in 2023, and would represent roughly 11% year-on-year growth in revenue and adjusted EBITDA.

During today’s (30 April) earnings call, Lottomatica stressed that it is still early to comment on the exact impact of the SKS365 acquisition on the group going forward.

However, CEO Angelozzi expressed strong confidence in the acquired asset, emphasising positive views on the brand, properties, and people involved.

Lottomatica anticipates providing a more detailed update in the next quarter.

The company added that it is looking forward to the UEFA EURO 2024 tournament as a customer acquisition opportunity; however, it stressed that its updated guidance already accounts for the impact of the tournament.

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