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Deyan Dimitrov May 16, 2023 3 min read
Lottomatica’s Impressive Q1 Financials Bolster Its Post-IPO Ambitions
The company’s stellar performances in its iGaming and sports betting verticals contributed to a record quarter
Lottomatica’s results largely mirror the broader trend in the Italian gambling industry, which has seen significant growth in recent years. Rising revenues across the board should fuel the company’s ambitions after it went public on the Borsa Milan Exchange, hopefully surpassing its projected targets. Despite the global financial instability, Lottomatica hopes to ride the expected IPO market recovery and generate additional value.
Going Public Did Not Hamper Momentum
The Italian lottery and gaming operator first announced its IPO ambitions in January. The company targeted an April listing, hoping to reduce its debt and generate additional proceeds from its new shares. Despite the ongoing turmoil following the recent string of bank failures, Lottomatica pressed on with its plans and successfully secured its listing.
Despite a first-day slip in share prices, controlling shareholder Apollo Global Management, an American global private equity firm, was happy with its results, noting that the move would attract new investors and aid future growth. With consistently good financials and strong demand in the Italian gaming market, Lottomatica sets an example for other companies considering a public listing.
Lottomatica Is Poised for Further Growth
Lottomatica’s Q1 results record substantial growth across most metrics. Overall revenue rose 19.4% year-on-year, reaching a record €424.8 million ($461.3 million). Gaming franchise revenue was the most impactful, contributing €188.0 million ($204.2 million). The company’s online segment experienced the most substantial increase, rising by an impressive 39.3% year-on-year for €124.0 million ($134.7 million).
While Lottomatica’s online sports betting vertical contributed the least at €110.0 million ($119.5 million) in revenue, it retained its healthy position, enjoying an 18.1% market share. Despite such impressive performance, rising inflation and interest rates caused expenses to skyrocket, as the operator lost €247.0 million ($268.3 million) for services payments and €38.0 million ($41.3 million) due to depreciation and write-downs of tangible assets.
Additional expenses of €6.9 million ($7.5 million) on other operating costs and €23.8 million ($25.9 million) in income taxes were not enough to offset Lottomatica’s revenue growth, as the company recorded profits of €46.4 million ($50.4 million)- a 33.8% year-on-year increase. Company CEO Gugliemo Angelozzi was content with the results, hoping the company would maintain its momentum for the rest of the year.
I want to express my gratitude to all my colleagues for these extraordinary results achieved thanks to their incredible dedication and commitment.Gugliemo Angelozzi, Lottomatica CEO
The success of Lottomatica’s Q1 2023 should bolster the company’s position in the Italian market and position it well to capitalize on future growth opportunities. The operator is doing an admirable job weathering the ongoing worldwide financial instability, consolidating its position in the Italian market, and setting the stage for further growth.
Deyan is an experienced writer, analyst, and seeker of forbidden lore. He has approximate knowledge about many things, which he is always willing to apply when researching and preparing his articles. With a degree in Copy-editing and Proofreading, Deyan is able to ensure that his work writing for GamblingNews is always up to scratch.
Business May 16, 2023