Lottomatica Group S.P.A., Italy’s leading gaming company, has delivered exceptional financial results for the fiscal year ending December 31, 2024, demonstrating remarkable growth across all key performance indicators. The company not only exceeded its own financial projections but also strengthened its dominant position in the competitive Italian gaming landscape, particularly in the rapidly expanding online segment. With strong momentum already evident in early 2025, Lottomatica appears well-positioned to capitalize on favorable market trends and continue its impressive trajectory in the coming years.
Record-Breaking Financial Performance
The Italian gaming powerhouse reported extraordinary financial achievements for fiscal year 2024, with total revenues reaching €2.00 billion ($2.14 billion), representing a substantial 22% increase compared to the previous year. This impressive revenue growth underscores the company’s successful adaptation to evolving market dynamics and consumer preferences. Perhaps most notably, Lottomatica’s adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) reached €739.4 million ($792 million), significantly exceeding the company’s previously upgraded guidance range of €700-730 million ($750-782 million).
The company’s total betting volume demonstrated even more dramatic growth, surging to €39.2 billion ($42 billion), marking a remarkable 30% year-over-year increase. This substantial growth in betting activity reflects Lottomatica’s enhanced market penetration and the increasing consumer engagement with its diverse gaming offerings. Operating cash flow remained robust at €556.8 million, while the adjusted net profit totaled €254.3 million, further highlighting the company’s operational efficiency and profitability.
These outstanding results are particularly impressive considering the challenging regulatory landscape in Italy, where significant reforms to the online gambling sector were implemented in 2024. The Italian government’s decision to substantially increase licensing fees and impose additional regulatory requirements presented obstacles that Lottomatica has successfully navigated, demonstrating the resilience and adaptability of its business model.
Segment Performance Analysis
A deeper examination of Lottomatica’s performance reveals significant variations across its different business segments, with particularly exceptional results in the online gaming and sports betting categories. The online gaming division emerged as the standout performer, with revenue soaring by 50% year-over-year to reach €780.2 million ($835.8 million). This remarkable growth was partially driven by strategic acquisitions, most notably the purchase of SKS365 in April 2024, which substantially expanded the company’s online gaming portfolio and market reach.
The sports franchise segment also delivered impressive results, with revenue increasing by 25% to €460.8 million compared to the previous year. This growth was fueled by a 27% rise in betting volume, reaching €3.58 billion. The segment benefited significantly from major sporting events in 2024, particularly the UEFA Euro 2024 football championship, which generated substantial betting activity during June and July.
The gaming franchise division showed more modest but still positive growth, with revenue increasing by 3% to reach €763.7 million. Betting volume in this segment remained relatively stable at €11.09 billion, consistent with the previous year’s performance. This steadiness in the traditional gaming segment highlights the importance of Lottomatica’s diversified business model, which allows it to maintain overall growth even when certain divisions experience more moderate expansion.
Market Dominance and Competitive Positioning
Lottomatica’s exceptional financial performance in 2024 has further consolidated its position as the dominant player in the Italian gaming market. The company achieved record-high market shares across multiple segments in the fourth quarter of 2024, with its total online market share reaching an impressive 30.9%, representing a 1.0 percentage point increase compared to the third quarter.
In the specific online segments, Lottomatica’s performance was equally impressive. The company’s iSports market share rose to 32.3%, reflecting a 0.8 percentage point increase from the previous quarter, while its iGaming market share reached 30.6%, up 0.9 percentage points. These steadily increasing market share figures underscore Lottomatica’s ability to outperform competitors and continually enhance its market position despite operating in a highly competitive environment alongside major international gaming companies such as SNAI, Flutter Entertainment, and Entain.
This market dominance is particularly significant given the broader growth trends in the Italian online gambling sector. According to industry projections, Italy’s online gambling industry is expected to achieve revenues of €2.89 billion in 2024, with an anticipated annual growth rate of 5.52% from 2024 to 2029. The market is projected to reach €3.78 billion by 2029, with the user base expanding to approximately 4.3 million during the same period. Lottomatica’s strong positioning within this growing market provides substantial opportunities for continued expansion and value creation.
2025 Outlook and Strategic Initiatives
The momentum generated in 2024 has carried forward into 2025, with Lottomatica reporting impressive early results. In the first two months of 2025, the company’s online gaming gross gaming revenue (GGR) grew by an extraordinary 72% compared to the same period in the previous year, while sports franchise GGR surged by 79%. These figures suggest that Lottomatica’s growth trajectory remains strong, although the gaming franchise segment experienced a 6% decline in GGR during this period.
Based on these early indicators and broader market trends, Lottomatica has established ambitious guidance for fiscal year 2025. The company projects total revenue between €2.32 billion and €2.37 billion, with adjusted EBITDA expected to reach €840-870 million. To support these growth objectives, Lottomatica anticipates capital expenditures of approximately €85 million for recurring investments, plus an additional €105 million for concession-related investments, including payments for online licenses and gaming machine concessions.
Guglielmo Angelozzi, Chief Executive Officer of Lottomatica Group, expressed optimism about the company’s prospects, stating: “2024 marked an outstanding year for our Group, in which we consolidated our leadership position across all segments and brands. Our objectives for 2025 are to strengthen our leadership position in all segments through product and technology innovation, further develop the omnichannel model while managing efficiently the retail to online transition that is occurring in the market.”
Shareholder Returns and Capital Allocation
In recognition of its strong financial position and substantial cash flow generation, Lottomatica has announced plans to enhance shareholder returns through dividend payments and potential share repurchases. The company has proposed a dividend of €0.30 per share, totaling approximately €75 million, subject to approval at the upcoming Annual General Meeting.
This dividend proposal demonstrates management’s commitment to delivering value to shareholders while maintaining financial flexibility for future growth initiatives.
Additionally, Lottomatica has requested authorization to repurchase up to 10% of its share capital over the next 18 months. If approved, this share buyback program would provide the company with another tool for capital returns, complementing its M&A strategy and other capital allocation priorities. Importantly, Lottomatica has confirmed that no shares would be repurchased from Gamma Intermediate if the buyback program is implemented.
Italian Gambling Market Context and Regulatory Environment
Lottomatica’s exceptional performance in 2024 is particularly noteworthy given the significant regulatory changes implemented in the Italian gambling market during this period. In early 2024, Italy published a decree reorganizing the online gambling sector, which included substantial increases in license fees and new regulatory requirements for operators.
Under the new regulatory framework, online gambling licenses in Italy will last for nine years, with operators required to pay a one-off fee of €7 million (compared to the previous fee of approximately €200,000) plus an annual concession fee of 3% of the net margin. These changes were implemented as the current gambling licenses in Italy are set to expire at the end of 2024, necessitating a new tender process for operators wishing to continue their activities in the market.
The Italian Ministry of Economy and Finance has estimated that these regulatory changes will generate at least €350 million in revenue if at least 50 operators apply for license renewals, with potential for an additional €100 million annually from new license applications. While these increased costs present challenges for operators, they also create opportunities for well-capitalized companies like Lottomatica to strengthen their market positions as smaller competitors may struggle to meet the new financial requirements.
Positioned for Sustained Growth
Looking ahead, Lottomatica appears exceptionally well-positioned to maintain its growth momentum and further enhance its market leadership in the Italian gaming industry. The company’s strong financial performance, increasing market share, and strategic initiatives provide a solid foundation for continued success, even amid evolving regulatory requirements and market dynamics.
The broader growth trends in the Italian online gambling market, driven by factors such as increasing consumer preference for online platforms, the popularity of sports betting (particularly football), and technological innovations like live dealer games, create a favorable environment for Lottomatica’s future expansion. With its robust financial position, diversified business model, and clear strategic vision, Lottomatica is poised to capitalize on these opportunities and deliver sustained value creation for shareholders in the years ahead.
