Italian operator Lottomatica has released its financial results for the third quarter of 2024, covering the nine months up to September 30.
Overall, revenue reached 1.42 billion euros ($1.08 billion), a 19% increase compared to the same period in 2023, with a normalized dividend rate growth of 23%. Including other income, Lottomatica's total revenue and earnings for the first nine months reached 1.43 billion euros—an increase of nearly 20 million euros from the previous year.
Of this, third-quarter revenue was 485.6 million euros, up 30% year-over-year. From the adjusted EBITDA for the first nine months of this year, Lottomatica reported total revenue of 483.1 million euros, a 13% increase year-over-year (or 25% considering the normalized dividend rate), with third-quarter revenue of 165.8 million euros, up 30%.
The adjusted net profit for the first nine months was 160.6 million euros, slightly improved from last year's 159.6 million euros, with 55.3 million euros coming from the third quarter—an increase of 16.8 million euros from the third quarter of 2023. However, pre-tax profit fell 7.9% to 108.4 million euros, with a total net profit of 57 million euros, down 15.3%.
Total betting reached 27.8 billion euros, a 28% increase from the previous year.
It is worth noting that Lottomatica acquired SKS365 in November 2023 for 639 million euros, with plans to acquire 100% of its shares in the first half of 2024. Therefore, these results include contributions from SKS365 up to May 1, 2024.
By segment: Online
The total online betting for the first nine months was 17.12 billion euros, up 48% year-over-year, accounting for 61.6% of Lottomatica's total betting. The sector's revenue reached 543.6 million euros, up 45% year-over-year, or 52% considering normalized spending; the report states that this figure "assumes normalized sports betting spending calculations for Lottomatica (79.7% for retail betting, 86.4% for online betting) and SKS365 (80.2% for retail betting, 84.4% for online betting)."
The online sector's adjusted EBITDA was 284.6 million euros, up 31% (or 41% considering normalized spending)—accounting for 58.9% of Lottomatica's total adjusted EBITDA for the nine-month period.
By segment: Sports Franchise
Looking at its sports franchise business, the total betting for the first nine months was 2.5 billion euros, up 23% year-over-year, accounting for 9% of the total betting. The sector's total revenue was 313.2 million euros, up 13% year-over-year, or 25% considering the normalized dividend rate, while the sector's adjusted EBITDA was 68.3 million euros; down 15% year-over-year, or up 19% considering the normalized dividend rate.
By segment: Gaming Franchise
Lottomatica's third sector reported that the total betting for the first nine months was 8.17 billion euros, slightly higher than last year's 8.15 billion euros. Revenue reached 560.6 million euros, up 3% year-over-year, with adjusted EBITDA also up 1% to 130.2 million euros by both calculation methods.
Insights
Although online betting is more than double the gambling betting, gambling revenue still surpasses online betting, reaching 560.6 million euros, while the online portion is 543.6 million euros. Despite additional revenue from the all-channel online and sports betting platform SKS365, its contribution has been included in the nine-month performance up to May 1, 2024.
However, as the online adjusted EBITDA outperforms gambling, and with betting, revenue, and adjusted EBITDA all achieving double-digit growth rates, Lottomatica's online sector is likely to start reporting higher revenues than the gambling franchise sector over time.
Fiscal Year 2024 Guidance
Based on the past nine months' performance, Lottomatica expects 2024 fiscal year revenue to be between 2.03 billion euros and 2.08 billion euros, with adjusted EBITDA between 700 million euros and 730 million euros.
Comments
Lottomatica Group CEO Guglielmo Angelozzi stated, "We are very pleased with the progress we have made so far this year. Our business has achieved double-digit growth, and in the third quarter, our online market share reached new historical highs in all vertical areas. The integration with SKS is progressing rapidly, and we have raised the level of expected synergies."
