Lottomatica Group Reports Strong Financial Results for H1 2024
Published: July 30, 2024 | Author: Ron Clarke
Lottomatica Group, one of Italy’s leading gambling companies, has released today, July 30th, its H1 financial results for 2024, showcasing significant growth across multiple sectors. The company’s latest financial report highlights a collection of €18.0 billion, marking an impressive 23% increase compared to the same period last year. This figure represents the total amount of money generated from all its gaming and betting operations. This remarkable growth was primarily driven by the online segment, which saw a 41% rise in collection.
Lottomatica’s revenue for the first half of 2024 reached €931.8 million, reflecting a 14% increase from the €820.1 million reported in H1 2023. The company’s ability to sustain double-digit growth in revenue underscores its effective strategies and market positioning. Adjusted EBITDA, a key profitability measure, rose by 6% to €317.3 million from €298.8 million in the first half of 2023, further illustrating Lottomatica’s financial health and operational efficiency.
Breaking down the performance by sector, the online segment was a standout, with revenue climbing to €338.3 million, a substantial 37% increase compared to the previous year. This surge can be attributed to the expanding market share and the company’s strategic focus on enhancing its online offerings. In the Sports Franchise segment, revenue reached €213.7 million, representing a modest 4% increase year-on-year. The Gaming Franchise segment reported revenue of €379.8 million, up 3% from H1 2023, indicating steady growth in this area as well.
Market share gains were another highlight of the report. Lottomatica achieved its highest-ever market share in the online segment, capturing 29.1% of the market in Q2 2024, up by 2.0 percentage points compared to Q2 2023. The iSports and iGaming segments also saw significant market share increases, reaching 29.7% and 29.5%, respectively, highlighting the company’s competitive strength in these areas.
However, it wasn’t all positive news. The company’s operating cash flow decreased to €228.0 million from €256.9 million in H1 2023, mainly due to higher concession payments. Additionally, the net financial debt rose to €1.913.1 million by the end of June 2024, up from €1.248.7 million at the end of 2023, resulting in a leverage ratio of 2.7 times the LTM run rate Adjusted EBITDA. This increase in debt is partially due to the acquisition of SKS365, which has been successfully integrated into Lottomatica’s operations.
In light of the strong performance and the integration of SKS365, Lottomatica has updated its guidance for the full year 2024. The company now expects revenue to be in the range of €2.030-2.080 billion, up from the previous estimate of €2.020-2.065 billion. Adjusted EBITDA is projected to be between €700-730 million, an increase from the earlier forecast of €680-700 million.
Guglielmo Angelozzi, CEO of Lottomatica Group, commented on the results, emphasizing the company’s strong organic growth and the successful realization of cost synergies. He noted that approximately 40% of the announced synergies from the acquisition of SKS365 have already been achieved. Additionally, the refinancing of €900 million in bonds has resulted in significant interest savings, further strengthening the company’s financial position.
Overall, Lottomatica’s H1 2024 financial results paint a picture of a company that is growing robustly and strategically positioning itself for continued success. The significant increases in revenue, market share, and adjusted EBITDA, coupled with the successful integration of acquisitions and strategic refinancing, indicate that Lottomatica is well-positioned to maintain its leadership in the Italian gaming market.
