Lottomatica FY2025 Results Highlight Expansion from Online Segment

Key Points

• Lottomatica online segment grew as wagering increased 22 per cent and online market share reached 31.3 per cent across Italy regulated gambling environment.
• Group revenue reached €2.26 billion while adjusted EBITDA increased to €856 million and net profit reached €369 million after 45 per cent growth.
• Integration of PWO and SKS365 generated €87 million in synergy which surpassed expectations and supported further gains in market share.

Lottomatica Group released financial results for the year ending 31 December 2025 as expansion of the online segment and product development increased revenue profit and market share. The company reported group gross gaming revenue of €4.735 billion which shows 8 per cent growth compared with the previous year’s performance. Total stakes processed through operations reached about €44.7 billion which represents a 14 per cent rise compared with the year before. Online betting activity drove this movement as wagering within the segment increased by 22 per cent across the reporting period. Online betting volume reached €954.5 million and this amount reflects a 22 per cent increase compared with the previous year.

Digital operations helped shore up the company’s position in the Italian online gaming market and with it, the online market share jumped to 31.3%. That’s up 1.2 percentage points from the previous year and it’s quite a big achievement too. Looking closer at the market, the company’s also got a strong 32.4% share of the Italian online sports betting sector and that’s in addition to a 31.5 per cent share across the online gaming segment. And when you look at the bigger picture, the online gaming side of the business is generating an impressive 43% of the company’s total revenue, a sign that they’re making some smart plays in the Italian market. All of that added up to a total group revenue of €2.26 billion for 2025, a 12% boost on the €2 billion of the year before.

Online Division Drives Revenue Growth for Lottomatica

The online division generated €954.5 million supported by gains across product segments legacy brands and contributions from integrated assets. Sports franchise revenue reached €527 million while gaming franchise revenue reached €774 million during the same year. Another financial disclosure recorded sports franchise revenue at €527.2 million which represents 14 per cent growth. The gaming segment reported the lowest increase with revenue rising 1 per cent to €773.6 million. The company also registered growth during the final quarter of the year. Fourth quarter revenue increased by 5 percent reaching €615 million. The group explained the decline in the gaming segment was offset by growth in the online division which remained the central engine of expansion.

Chairman and Chief Executive Officer Guglielmo Angelozzi stated that product development supported market share increase during the year. During the earnings call he explained that the company continues development pipeline connected with the Lottomatica Core platform. The system represents marketing technology infrastructure placed above gaming platforms used for digital marketing and risk management. Angelozzi said tools within Lottomatica Core remain a central part of the company’s roadmap and provide separation within the market. The online division also gained support from sports betting payouts during the year which affected SKS365 brand performance. The company said growth came from share gains across product segments brands and contribution from PWO acquisition.

At the end of 2025 the group recorded about 2.2 million online customers. The company also operated around 17,400 retail outlets located throughout Italy. Market share expansion also occurred because the company absorbed activity from smaller operators. Those operators could not meet licensing rules introduced at the end of 2025 by Italy ADM regulator.

Acquisition Integration Creates Market Impact

During the reporting year the company completed the integration process tied to acquisitions. Integration of PWO acquired in May 2024 finished earlier than scheduled and generated €87 million in synergies. The result exceeded original guidance by about 34 per cent. Integration placed the PWO brand onto Lottomatica’s proprietary technology stack. PWO returned to growth during the period and recorded an online market share of 6.3 per cent in the fourth quarter. The company also finalised SKS365 brand integration during the year. This process generated €87 million in synergy. Outcome surpassed the earlier synergy target of €65 million. Management expects financial impact from those efficiencies to appear during accounts for 2026. The group reported adjusted EBITDA reaching €856 million during the year. This result equals 21 per cent growth compared with the previous year.

EBITDA margin reached 38 per cent compared with 35.3 per cent recorded in 2024. Adjusted net profit reached €369 million representing 45 per cent growth year on year. Operating cash flow remained strong according to the company disclosure. Cash flow reached €657 million despite concession investment tied to renewal of online gaming licences. Financial accounts also show the company’s cash position at €657 million at year’s end. The previous financial year recorded €556 million. Net financial debt stood at €2.11 billion. Leverage reached 2.4 times run-rate adjusted EBITDA. The company also ended the year holding €375 million on its balance sheet.

Capital Return Plans and 2026 Outlook

Capital return remained focused as Lottomatica distributed €375 million to shareholders through dividends and share repurchases. Distribution included €75 million through dividends and €300 million through share buybacks. The board also proposed a dividend of €0.44 per ordinary share for the financial year 2025. Total dividend value equals about €111 million. Shareholders will vote on dividend financial statements governance matters and the share buyback proposal during the meeting scheduled for 20 April. Directors also requested approval for a share buyback programme covering up to 12.5 per cent of outstanding shares over the next 18 months. If executed fully programme may represent about €700 million capital return between 2026 and 2027. The group also secured a strategic contract during the year. Activities concluded with the renewal of the Lotto Italia contract until 2038.

Tender was won by the Brightstar Lottery, with them at the helm as the lead tech supplier. The bid came in higher than the others, beating out the ones from SISAL and Flutter Entertainment. Now the company is looking ahead to 2026 and the plans are all about growing and expanding. Management is forecasting revenue to fall somewhere between €2.39 billion and €2.46 billion and an adjusted EBITDA of between €940 million and €980 million. Concretely, that’s €85 million to €90 million put aside for ongoing capital expenses and then there’s the concession investment, which sits close to €78 million. Francesco Angelozzi says 2026 is the year they start to get even stronger and take a step forward, they’re still doing the same things but pushing to go further. The company is sticking to their tried and tested strategy of growing organically & making targeted acquisitions to further their ambitions. The business will invest in product capability technology brand development and retail network expansion. Analysts also questioned executives regarding the potential acquisition of Evoke’s Italian business. Evoke announced a strategic review and possible sale of part of its business during December. Chief Financial Officer Laurence Van Lancker stated the company will not comment on specific acquisition targets. He confirmed the company monitors opportunities across Europe including Italy. Evoke has not confirmed which business parts are under review.