Lottomatica, Italy’s leading lottery and online gaming operator, has achieved a significant milestone in its domestic market, securing 30% of the Italian online gambling market share following its recent acquisition of SKS365. The acquisition, completed in November 2023, included the popular online gaming site PlanetWin365, expanding Lottomatica’s reach in both sports betting and iGaming. This strategic move has propelled the Milan Borsa-listed company to an all-time high market share in these segments, further consolidating its position as a dominant player in Italy’s competitive online gaming landscape.
In a recent statement, Lottomatica CEO Guglielmo Angelozzi expressed satisfaction with the company’s year-to-date performance, highlighting the double-digit growth and the accelerated integration of SKS365. He commented, “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.” Lottomatica has increased its synergy target for the SKS365 acquisition to €75 million, with around 50% of these synergies already achieved.
Strong Revenue Growth and Market Expansion
For the first nine months of 2024, Lottomatica reported total revenues of €1.42 billion, a 19% year-over-year increase, with adjusted EBITDA rising by 13% to €483.1 million. A significant portion of this growth was driven by online betting, which saw a 48% increase in bets, totaling €17.1 billion out of the €27.8 billion in total wagers. The integration of SKS365 contributed to this growth, boosting Lottomatica’s adjusted EBITDA and expanding its online market footprint.
Despite the positive financial performance, Lottomatica’s net profit decreased slightly, standing at €57 million compared to €67.3 million in the previous year. Nonetheless, the company has maintained its outlook for 2024, expecting revenues to reach between €2.03 billion and €2.08 billion, with adjusted EBITDA projected at €700 million to €730 million.
Lottomatica’s latest quarterly results show that it holds a 31.5% share in the Italian sports betting market and a 29.7% share in the iGaming sector. These figures reflect a 1.5 percentage point increase year-over-year in both categories, underscoring Lottomatica’s successful market expansion. The acquisition of SKS365 and the rapid integration of its assets have positioned Lottomatica as the top operator in Italy’s regulated gambling market.
Market Consolidation and Strategic Adjustments
In addition to its domestic growth, Lottomatica has leveraged SKS365’s resources to strengthen its competitive advantage. This acquisition is part of a broader trend of consolidation within the Italian online gambling market, as major operators aim to capture larger shares of the rapidly growing iGaming sector. Lottomatica’s acquisition strategy also aligns with Italy’s forthcoming gambling reforms, which are set to provide new regulatory guidelines and competitive opportunities.
The Italian government’s proposed gambling reforms, currently under review by the European Commission, seek to streamline regulations and open the market to new online gaming tenders. Industry observers anticipate these reforms will drive further consolidation and create a more structured environment for licensed operators. Lottomatica’s early moves to consolidate its market position indicate the company’s readiness to navigate the evolving regulatory landscape.
Lottomatica has also implemented several business adjustments in response to market demands. With its adjusted EBITDA margin now at 34.1%, Lottomatica is focused on optimizing operational efficiencies while managing a net financial debt of approximately €1.9 billion, which equates to 2.6 times its adjusted EBITDA over the last twelve months. This financial stability has allowed the company to continue expanding its market presence, even as competition intensifies.
Sources:
“Continued Strong Performance in Q3 2024, with Adj. EBITDA Up +30% vs 2023,” Lottomatica Group S.p.A., October 30, 2024. [pdf]
