Key points:
- Revenue was up 19% for the nine-month period, totalling €1.42bn
- The gaming franchise segment was the largest contributor to this at €560.6m, followed by the online segment at €543.6m
- Online gaming revenue was up 45% year-on-year, with bets up 48%
Italian operator Lottomatica has released its financial results for the third quarter of 2024, covering the nine months ending 30 September.
In total, revenue came to €1.42bn ($1.08bn), up 19% from the same nine-month period in 2023 or 23% at a normalised payout rate. Including other income, the total revenue and income for Lottomatica for the nine-month period came to €1.43bn – almost €20m more than this time last year.
Of this, €485.6m was made in Q3, up 30% year-on-year. Looking at adjusted EBITDA for the first nine months of the year, Lottomatica reported a total of €483.1m, up 13% year-on-year (or 25% at normalised payout), with Q3 revenue accounting for €165.8m, up 30% year-on-year.
Adjusted net profit for the nine-month period came to €160.6m, a slight improvement from last year’s €159.6m, of which €55.3m came from Q3 – up by €16.8m compared to Q3 2023. However, profit before tax fell 7.9% to €108.4m, with net profit for the period totalling €57m, down 15.3%.
Total bets came to €27.8bn, up 28% from the same nine-month period last year.
Good to know: Lottomatica purchased SKS365 in a €639m deal in November 2023, with the operator planning to acquire 100% of its shares by H1 2024. These results, therefore, include contributions from SKS365 as of 1 May 2024
By segment: Online
Online bets for the nine-month period totalled €17.12bn, up 48% year-on-year, accounting for 61.6% of the total bets placed via Lottomatica. Revenue for the segment came to €543.6m, up 45% year-on-year or 52% at normalised payout; a figure ‘calculated assuming a normalised sports betting payout for Lottomatica (79.7% for betting retail and 86.4% for betting online) and SKS365 (80.2% for betting retail and 84.4% for betting online),’ according to the report.
Adjusted EBITDA for the online segment came to €284.6m, up 31% (or 41% at normalised payout) – 58.9% of Lottomatica’s total adjusted EBITDA for the nine-month period.
By segment: Sports franchise
Looking at its sports franchise segment, bets for the nine-month period totalled €2.5bn, up 23% year-on-year, accounting for 9% of total bets. Revenue for the segment totalled €313.2m, up 13% year-on-year or 25% at normalised payout, while adjusted EBITDA for the segment came to €68.3m; a year-on-year decline of 15%, or an increase of 19% at normalised payout.
By segment: Gaming franchise
Lottomatica’s third segment reported bets totalling €8.17bn for the nine-month period, a slight improvement on last year’s €8.15bn in bets. Revenue came to €560.6m, up 3% both year-on-year and at normalised payout, which was also the case for adjusted EBITDA, which was up 1% by both calculations to €130.2m.
Insights
Despite online bets being more than double that of gaming bets, revenue from gaming bets was able to outperform online bets, making €560.6m to the online segment’s €543.6m. This is also despite the additional revenue brought in by online and sports betting omnichannel platform SKS365, with contributions from the platform being factored into the nine-month results as of 1 May 2024.
However, with online adjusted EBITDA outperforming gaming, and the double-digit growth rate reported in bets, revenue and adjusted EBITDA, it is likely that Lottomatica's online segment will begin to report higher revenue than the gaming franchise segment with time.
2024 fiscal year guidance
Based on the nine-month results, Lottomatica has reported a 2024 fiscal year guidance of €2.03bn – $2.08bn in revenue, with an adjusted EBITDA of €700m –€730m.
Comments
On the results, Lottomatica Group CEO Guglielmo Angelozzi said: “We are very pleased with the progress achieved so far this year. 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.”
