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Lottomatica 2023 financial results; online revenue up 33%

Total gross gaming revenue was up 6%, with revenue up 12% from full-year 2022.  

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Lottomatica has reported its earnings for 2023. Gross gaming revenue (GGR) came to €3.9bn ($4.2bn), up 6% from 2022. Adjusted EBITDA totalled €595.7m at normalised payout, with revenue up 12% year-on-year for a total of €1.6bn. 

On the results, Lottomatica CEO Guglielmo Angelozzi said: “2023 marked a very strong year for our group, in which we consolidated our leadership position across all segments and brands... We continued to grow both organically, increasing market share for the fifth quarter in a row and through M&A, signing the acquisition of SKS365 and executing our bolt-on strategy.” 

Revenue by segment 

When assessing Lottomatica’s 2023 revenue, of the €1.6bn reported, the biggest contributing segment was gaming franchises, which generated €743.5m. However, this was the smallest year-on-year growth of Lottomatica’s three revenue segments, up 2%. 

Online revenue was the second biggest contributor, generating €520.8m. This reflects a sizeable growth of 33% from the €390.7m reported last year, making it the largest growing segment among the three. 

Finally, the smallest contribution came from sports franchise revenue, which made €368.2m, up 8% from the €340.8m reported last year.  

2024 guidance 

Alongside a breakdown of annual revenue, Lottomatica also gave guidance for its full-year 2024 revenue. Lottomatica expects revenues between €1.8bn and €1.85bn, with an estimated adjusted EBITDA between €625m - €645m.  

Acquisition of SKS365 

One factor Lottomatica noted was its acquisition of SKS365 in November. The €639m deal saw Lottomatica prepare to purchase 100% of SKS365 shares, with the deal expected to be complete sometime this half.  

At the time of the acquisition, Lottomatica expected that the purchase would result in cash cost synergies of €60m and revenue synergies of roughly €5m in the coming three years. Lottomatica currently holds a 9.6% market share in iSports and 6.4% in iGaming in Italy, though the acquisition may provide an opportunity for this to develop further.  

Angelozzi at the time said: “We are excited to welcome to our Group SKS365, a top-performing player in the Italian gaming sector and led by one of the most respected management teams in the industry, under the leadership of Alexander Martin."   

SKS365 is widely connected, having played host to several partnerships. Recent examples include partnering with Spribe last February, G Games in June and Octavian Gaming in December, providing a way for these developers and suppliers to broaden their presence in the Italian market.  

SKS365 will likely play a notable part in Lottomatica reaching its 2024 full-year guidance figures. As stated in the report: “An updated guidance will be provided after the closing of the SKS365 acquisition.” 

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