Lottomatica considers mergers and acquisitions after strong first quarter.

Lottomatica has shown significant growth in the first quarter, reporting a record revenue of €584.5 million ($659.8 million). This growth was primarily driven by substantial increases in its online and sports betting segments. The company saw a remarkable 33% year-on-year revenue increase in the first quarter of 2025, marking its highest Q1 revenue total to date.

The online and sports betting businesses were the main contributors to Lottomatica’s strong performance. Both segments reported a remarkable 59% year-on-year revenue growth during the quarter. Additionally, total bets across each of these segments also saw an increase, further indicating the company’s success in these areas.

CEO Guglielmo Angelozzi expressed optimism about the company’s future following the record quarter. He highlighted the continuous growth in the online market and the positive payout for sports, emphasizing that the results exceeded normal levels both online and retail, and outperformed the same period last year.

Following the successful Q1 results, there is speculation about Lottomatica’s potential for further mergers and acquisitions. Although the company acquired SKS365 in April 2024, Angelozzi did not dismiss the possibility of additional M&A activity. He mentioned that they are discerning about the quality of assets they consider and maintain discipline regarding pricing. While being selective, they continue to explore compelling opportunities for expansion.

Chief Financial Officer Lawrence Valanger echoed this sentiment, stating that Lottomatica remains focused on analyzing potential M&A opportunities in regulated European markets. He emphasized the importance of maintaining the same disciplined approach to pricing even as they selectively pursue bolt-on strategies in Italy.

Despite the uncertainties around possible tariffs in the US, Angelozzi assured analysts that Lottomatica remains resilient in the face of macroeconomic challenges. He expressed confidence in the company’s ability to weather economic shocks and global financial crises based on its past performance.

The acquisition of SKS365 had a significant impact on Lottomatica’s online and sports betting revenue in Q1. The company reported a 59% increase in revenue for the online segment, making it the primary revenue source for Lottomatica. Similarly, sports betting revenue also grew by 59% year-on-year, with favorable sports payouts contributing to the overall growth.

While the gaming segment did not benefit from the acquisition, Lottomatica’s growth was evident in betting volumes. Online bets surged by 46%, sports betting wagers increased by 27%, while gaming wagers decreased by 3% in the first quarter. The rise in revenue translated into a record adjusted EBITDA of €220.5 million, with notable increases in online and sports betting segments.

Operating costs were higher overall, and depreciation charges increased, although finance expenses decreased. Lottomatica reported a pre-tax profit of €77.8 million for the quarter, representing a 49% year-on-year increase. The company paid €26.3 million in taxes, resulting in a net profit of €51.5 million, a substantial increase from the previous year.

After factoring in profits from non-controlling assets, Lottomatica’s net profit reached €50.3 million, up by 77.7% from the previous year. The company’s strong financial performance in Q1 underscores its resilience and growth potential, setting a positive tone for the rest of 2025.