Exploring Potential Mergers and Acquisitions by Lottomatica after Exceptional Q1 Performance
Lottomatica sets the bar high with a record-breaking first-quarter revenue of €584.5 million, a whopping 33% increase over the previous year! The Italian powerhouse isn't ruling out more moves to bolster its offerings, leaving us eager for potential M&A activity.
Q1's impressive revenue surge stems from a double-digit growth spree in both online and sports betting segments. The group's online and sports betting businesses reported a jaw-dropping 59% year-on-year rise in revenue, with total bets up across both sectors. It seems the online market continues to bloom, and sports payouts have been exceptional, surpassing normal levels online and in retail.
CEO Guglielmo Angelozzi was all smiles, praising the strong start and forecasting a successful 2025. But when it comes to M&A, speculation is swirling, especially since Lottomatica's buoyant results are reminiscent of the impressive impact of last year's SKS365 acquisition.
Though Angelozzi hinted at potential M&A opportunities on the horizon, he stressed a strict filter for any new additions, emphasizing their quality and ensuring they fit the budget. The company's CFO, Laurence Van Lancker, echoed this sentiment, stating they remain focused on Europe B2C regulated markets and continue to eye second verticals in which they operate.
Hitting headwinds? Lottomatica is resilient, as shown by its fortitude in the face of potential incoming tariffs in the US. The operator remains robust through economic shocks and recessions, according to Angelozzi.
SKS365, now known as PWO within Lottomatica, fueled the upward trend in online and sports betting revenue. The acquisition skyrocketed online revenue to €239.8 million, and the same goes for sports betting which witnessed a 59% increase to €150.4 million. Notably, the gaming segment was the only one that didn't see a spike, with revenue staying steady at €195.5 million in Q1.
In terms of betting volume, the integration of SKS365 was evident. Online bets jumped 46% to €7.36 billion, sports betting wagers climbed 27% to €1.05 billion, while gaming wagers dipped 3%. Strong growth in adjusted EBITDA further solidified the positive impact, surging 47% to €220.5 million, setting a new Q1 record for Lottomatica.
The financials were impressive as well, with a net profit of €51.5 million, up 71.9% year-over-year. Removing €1.3 million in net profit from non-controlling assets, Lottomatica's bottom-line net profit stood at €50.3 million, marking an impressive growth rate of 77.7%.
Stay tuned for more news on potential M&A moves from Lottomatica! The operator is tight-lipped about its intentions, but the tantalizing prospect of expansion possibilities has gaming enthusiasts on the edge of their seats.
- Lottomatica's first-quarter revenue of €584.5 million, an impressive 33% increase from the previous year, highlights the company's strong position in the finance industry, especially in Italy.
- With a 59% year-on-year rise in online and sports betting revenue, Lottomatica's Q1 surge can be attributed to the double-digit growth in both segments, demonstrating the flourishing state of their technology-driven business.
- The keen interest surrounding potential M&A activity by Lottomatica is fueled by the success of last year's SKS365 acquisition, which boosted the operator's online and sports betting revenue significantly.
- Lottomatica maintains a focused strategy in Europe's B2C regulated markets, aiming for quality and budget-friendly M&A opportunities in second verticals they currently operate in.
- Resilient in the face of economic shocks, Lottomatica's ability to withstand potential incoming tariffs in the US underscores the company's robustness, making it an interesting investment prospect in the finance and sports sectors.
