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Introduction & Market Context
Lottomatica Group SpA (LTMC) presented its H1 2025 results on July 31, 2025, showcasing continued double-digit growth across key financial metrics. The Italian gaming giant maintained its market leadership position with a 30.7% market share as of June 2025, outperforming the broader online gaming market which grew at approximately 14% year-over-year.
The company’s stock closed at €24.62 on July 30, 2025, representing a 1.48% increase on the day and continuing its strong performance trend. Lottomatica has seen its share price more than double from its 52-week low of €10.89, reflecting investor confidence in the company’s growth strategy and market position.
Quarterly Performance Highlights
Lottomatica reported robust growth in Q2 2025, with revenues reaching €543 million, a 10% increase compared to Q2 2024. Adjusted EBITDA for the quarter grew even more impressively at 20% year-over-year to €202 million. When excluding the Euro Cup impact in Q2 2024, adjusted EBITDA growth was even stronger at 23%.
As shown in the following chart of quarterly revenue and EBITDA growth:
The company’s online segment significantly outperformed the market across all product categories. Excluding the impact of major sporting events (Euro Cup and World Club Cup), Lottomatica’s online growth reached 19% compared to the market’s 12% growth rate.
The breakdown by product category demonstrates Lottomatica’s strong performance across its portfolio:
Detailed Financial Analysis
For the first half of 2025, Lottomatica reported total bets of €21.8 billion, representing a 21% increase from H1 2024. This translated to gross gaming revenue (GGR) of €2.36 billion (+13%) and total revenues of €1.13 billion (+21%). Adjusted EBITDA for H1 2025 reached €422 million, a 33% increase year-over-year, with margins expanding from 34.1% to 37.4%.
The comprehensive financial overview illustrates the company’s growth trajectory:
Segment analysis reveals that the online business was the primary growth driver, with revenues increasing 31% to €279 million and adjusted EBITDA surging 60% to €128 million in H1 2025. The Sports Franchise segment saw a slight revenue decline of 2% but managed to increase adjusted EBITDA by 12%. Similarly, the Gaming Franchise segment experienced a 2% revenue decrease but maintained stable EBITDA performance with a 2% increase.
The following chart details the performance by segment:
Lottomatica’s cash generation remained strong, with operating cash flow increasing to €344 million in H1 2025 from €228 million in H1 2024. Capital expenditure as a percentage of revenue decreased from 10% to 7%, reflecting improved operational efficiency.
The cash flow breakdown shows the company’s disciplined capital allocation:
Strategic Initiatives
Lottomatica reported significant progress on several strategic fronts. The integration of PWO is proceeding according to plan, with platform migration completed and 85% of the targeted €87 million in synergies already secured. The company has also confirmed that the adjusted EBITDA benefit from 2024 bolt-on acquisitions is expected to reach approximately €20 million by year-end.
The company’s net financial debt stood at €1,809 million as of June 30, 2025, resulting in a leverage ratio of 2.1x (net financial debt to last twelve months run-rate adjusted EBITDA). This represents a slight increase from €1,805 million at the end of Q1 2025 but remains within the company’s target range.
The following chart illustrates the evolution of Lottomatica’s net financial debt:
Lottomatica has also initiated a share buyback program, which began on June 18, 2025. As of the presentation date, the company had acquired 1,333,167 shares under this program.
Forward-Looking Statements
Looking ahead, Lottomatica confirmed its full-year 2025 guidance, supported by favorable market conditions and continued execution of its growth strategy. The company highlighted that new gaming concessions are set to start on November 12, 2025, with Lottomatica having already secured approximately 2% of market share for future exploitation.
Management also noted that 7-10% of market share is potentially available for redistribution after November, presenting additional growth opportunities. The online gaming market is expected to maintain its mid-teens growth rate, providing a stable foundation for Lottomatica’s continued expansion.
The company’s market share has shown consistent growth, with all brands excluding PWO increasing from 21.6% in Q1 2024 to 23.7% in Q2 2025, demonstrating Lottomatica’s ability to gain share in a competitive market:
Building on the momentum from Q1 2025, when the company reported a 33% year-over-year revenue increase to €586 million and a 47% EBITDA improvement to €220 million, Lottomatica appears well-positioned to continue its growth trajectory through the remainder of 2025 and beyond.
Full presentation:
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