Lottomatica Reports 18.7% Q3 Revenue Growth
Italian gaming company Lottomatica has reported a 18.7% increase in Q3 revenue to €1.42 billion from €1.19 billion last year. The growth is mainly driven by the acquisition of SKS365 and the growth of the online segment.
Online Revenue Soars After SKS365 Acquisition
After the acquisition of SKS365 in April, online revenue has grown significantly. Over the nine months, online revenue was up 37.3% to €513.6 million from the same period last year.
The integration of brands like PlanetWin365, Goldbet and Betflag and the existing Lottomatica.it platform has increased overall player bets by 48.7% to 17.1 million.
This has brought Lottomatica’s share of the Italian online market to 24% over nine months and 30% in the third quarter alone.
Gaming and Sports Franchises Stable
Gaming is still the biggest contributor to Lottomatica’s revenue, with a 3.2% increase to €560.6 million. Betting volumes in this segment were flat year-on-year at 8.2 million.
The sports franchise also showed positive trends, with revenue up 12.9% to €313.2 million and total bets up 23.3%. The SKS365 deal added 1,000 sports betting shops to Lottomatica’s retail network.
Higher Expenses Hit Net Profit
Despite the revenue growth, the costs of the SKS365 acquisition impacted Lottomatica’s profitability. Expenses for the nine months increased in several areas, with service costs up 21.4% to €855.2 million.
This led to a 7.9% decrease in pre-tax profit to €108.4 million. After taxes and non-controlling interests, net profit was down 13.9% to €52.5 million. Adjusted EBITDA was up 13.3% year-on-year to €483.1 million.
CEO Sees Bright Future
Guglielmo Angelozzi, Lottomatica’s CEO, remains positive about the company’s long-term prospects. “We’re very pleased with the progress achieved so far this year,” Angelozzi stated. “Our business has experienced double-digit growth, and in Q3 our online market share reached an all-time high across all verticals.
“The integration with SKS is advancing at a fast pace, and we upgraded the level of synergies we expect to extract”, he added.
Lottomatica confirms full year guidance. The company expects 2024 revenue to be between €2.03 billion and €2.08 billion (previously €2.02 billion to €2.07 billion) and adjusted EBITDA between €630 million and €700 million.
