Lottomatica, a leading player in the gaming and betting industry, has recently unveiled its financial results for the first quarter of 2024, offering insights into its revenue, gross gaming revenue (GGR), adjusted EBITDA, and more.
Q1 2024 Financial Report
Revenue Overview
In Q1 2024, Lottomatica reported a total revenue of €440.1m ($471.1m), showcasing a 4% increase compared to the previous year. Notably, the gross gaming revenue (GGR) stood at €1.01bn, marking a 1% year-on-year growth. These figures demonstrate the company’s resilience and ability to maintain steady growth amidst dynamic market conditions.
Segment-wise Breakdown
Gaming Franchises
The gaming franchises emerged as the primary revenue driver for Lottomatica, contributing €195.3m, which accounts for 44.4% of the total revenue. Despite its significant contribution, this segment experienced a modest 4% annual growth, reflecting stable performance but not substantial expansion.
Online Segment
In contrast, the online segment demonstrated remarkable growth, with a 21% annual increase in revenue, totaling €150.4m for the quarter. This segment constituted 34.2% of the overall revenue, highlighting the increasing importance of digital platforms in Lottomatica’s revenue stream.
Sports Franchise
However, the sports franchise revenue witnessed a decline of 15% year-on-year, generating €94.4m in revenue for the quarter. The report attributed this decrease to an ‘unfavourable payout’ scenario, reminiscent of challenges faced by sportsbooks in the US following the outcome of February’s Super Bowl.
EBITDA Performance
Lottomatica’s adjusted EBITDA for the quarter amounted to €149.5m, registering a 4% decline compared to the previous year. Similarly, the adjusted net profit saw a 24.1% decrease, totaling €49.7m. Despite these declines, the company remains financially robust, with solid EBITDA figures across its key segments.
Segment-wise EBITDA Analysis
Gaming Franchises
The adjusted EBITDA for gaming franchises experienced a modest 4% increase, reaching €46.9m for the quarter. This growth underscores the segment’s stability and resilience amidst evolving market dynamics.
Online Segment
On the other hand, the online segment showcased robust performance, with adjusted EBITDA increasing by 7%, amounting to €82.9m. This growth reaffirms the strategic importance of Lottomatica’s digital initiatives and investments.
Sports Franchise
However, the sports franchise segment witnessed a significant 40% decline in adjusted EBITDA, reaching €19.7m. While facing challenges, Lottomatica remains focused on addressing the underlying factors contributing to this decline.
Normalised Payout Analysis
Normalised payout calculations provide valuable insights into Lottomatica’s performance, adjusting for variations in sports bet payouts. Based on this premise, the company’s revenue saw a substantial 16% year-on-year increase, while adjusted EBITDA witnessed a remarkable 23% growth, highlighting the effectiveness of Lottomatica’s operational strategies.
Bets and Performance
In Q1 2024, Lottomatica recorded a total of €8.73bn in bets, representing a 20% year-on-year increase. The online segment emerged as a standout performer, surpassing expectations with a 36% annual growth and total bets amounting to €5.06bn. Meanwhile, sports franchises and gaming franchises experienced 10% and 1% year-on-year growth in bets, respectively.
Future Outlook and Guidance
Following the acquisition of SKS365 in November, Lottomatica revised its guidance for FY24 revenue, anticipating a range of €2.02bn – €2.07bn. Additionally, the adjusted EBITDA guidance stands at €680m – €700m, reflecting the company’s confidence in its growth trajectory and strategic initiatives.
CEO Statement
Lottomatica CEO, Guglielmo Angelozzi, expressed optimism regarding the company’s performance, highlighting the continued path of organic growth and successful completion of strategic acquisitions. With a strong pipeline of opportunities, Lottomatica remains committed to delivering value to its stakeholders and capitalizing on emerging market trends.
Conclusion: The Financial Results
Lottomatica’s financial results for Q1 2024 underscore its resilience, strategic agility, and commitment to driving sustainable growth. Despite challenges in certain segments, the company’s overall performance reflects its ability to navigate complexities and capitalize on opportunities in the dynamic gaming and betting landscape.
FAQs About the Financial Results of Q1 2024
1. What were Lottomatica’s financial results for the first quarter of 2024?
The financial results for Q1 2024 revealed that Lottomatica generated a revenue of €440.1m ($471.1m) and a gross gaming revenue (GGR) of €1.01bn, with a 4% increase in revenue and a 1% increase in GGR compared to the previous year.
2. How did Lottomatica’s revenue perform across its different segments?
Lottomatica’s revenue was primarily driven by gaming franchises, contributing €195.3m, followed by the online segment with €150.4m, and sports franchises with €94.4m.
3. What were the growth rates of each segment in terms of revenue?
The gaming franchises experienced a 4% annual growth, the online segment grew by 21%, while sports franchise revenue fell by 15% year-on-year.
4. What were the adjusted EBITDA figures for Lottomatica?
Lottomatica reported an adjusted EBITDA of €149.5m, with gaming franchise adjusted EBITDA up 4%, online adjusted EBITDA up 7%, and sports franchise adjusted EBITDA down 40%.
5. How did the company’s bets perform in Q1 2024?
Lottomatica recorded a total of €8.73bn in bets for the quarter, with the online segment overperforming with a 36% annual growth, while sports franchises and gaming franchises experienced 10% and 1% year-on-year growth in bets, respectively.
6. What guidance did Lottomatica provide for its future performance?
Following the acquisition of SKS365, Lottomatica revised its guidance for FY24 revenue to €2.02bn – €2.07bn, with an adjusted EBITDA guidance of €680m – €700m.
7. What did Lottomatica’s CEO say about the company’s performance?
Lottomatica CEO, Guglielmo Angelozzi, expressed satisfaction with the company’s organic growth and successful acquisition of SKS365, highlighting double-digit growth in revenues and EBITDA.
8. What factors contributed to the decline in sports franchise revenue?
The decline in sports franchise revenue was attributed to an unfavorable payout scenario, similar to challenges faced by sportsbooks in the US after February’s Super Bowl outcome.
