Lottomatica reports 21% revenue rise ahead of Euronext Milan debut

Ahead of its planned IPO, Lottomatica has reported a 21% year-on-year revenue rise to €281m for the first two months of 2023. 

Lottomatica unveiled earlier this year its intention to debut on the Euronext Milan in April, and just recently, the plan was approved by the company’s shareholders.

In a trading update, the Italian company said it recorded a 39% revenue increase in its online segment and a 19% revenue rise in its sports franchise segment in January and February 2023 compared to the same period in 2022.

In addition, the company posted a 12% revenue rise in the gaming franchise segment.

EBITDA for the same period increased by 27% to €104m.

Moreover, Lottomatica reported that it processed €4.8m in total wagers across the business in January and February of this year, a 33% increase compared to the same period in 2022.

Full-year guidance

Lottomatica said revenue guidance for the full year is between €1.57bn and €1.67bn.

The company also aims to achieve EBITDA of €550m to €570m, including an online EBITDA of at least €275m.

To support these targets, the gaming group has planned for recurring capital expenditure of approximately €65m and concession capital expenditure of approximately €45m, along with one-off growth capital expenditure of approximately €30m.

Based on market projections provided by H2G and Prisma-MAG, Lottomatica anticipates an increase of 15% in online GGR between 2022 and 2023 and a CAGR of 13% for the period 2023 to 2027.

While sports retail GGR is expected to increase by 7% between 2022 and 2023 and at a CAGR of 3% in the period 2023 to 2027, gaming retail GGR is projected to increase by 6% between 2022 and 2023 and at a CAGR of 3% in the period 2023 to 2027.

At the time of its potential listing, Lottomatica aims to achieve a net leverage ratio of about 2.5 times its net financial debt to its anticipated future EBITDA.

If the listing is successful, the company intends to repay an intercompany loan of €250m to its sister entity, Gamma Bondco S.à.r.l.

Looking ahead, on a steady state basis, Lottomatica has set its sights on achieving a net financial debt to EBITDA ratio of 2.0 to 2.5x.