Lottomatica Group S.p.a. · MIL:LTMC
Lottomatica — Q1 2025 Earnings Presentation
27 slides from Lottomatica's earnings presentation, May 7, 2025
Slide 1: Lottomatica Q1 2025 Results Presentation
Lottomatica Q1 2025 Results Presentation 7Confidential May 2025 |
Slide 2: Highlights and Business Update
Highlights and Business Update Guglielmo Angelozzi, CEO
Slide 3: Continued strong business momentum, best Q1 results ever
Continued strong business momentum, best Q1 results ever Market growth continues Lottomatica continues to grow faster Favourable sports payout in Q1 than market Overall Online Q1 Payout Actual vs Normalised (%) Overall Online GGR growth quarter by quarter (%) GGR growth in Q1 YoY (%) Continued March
Slide 4: Short term positives and medium-long term structural advantages
Short term positives and medium-long term structural advantages Short term good news Structural advantages ▪ Additional €12.5m cost synergies: new target at €87m (from €75m) by 2026 ▪ During macro headwinds Increased ▪ 61% synergies secured to date target synergies ▪ During economic shocks and ▪ Pla
Slide 5: Track record of sector resilience to macro headwinds
Track record of sector resilience to macro headwinds Proven resiliency during recessions Quickly recovered to pre-pandemic levels Limited impact from recent inflationary pressure Italian GGR(1) and GDP evolution (YoY change, %) Italian gaming market evolution (GGR, €bn) Italian GGR(2) and Inflation
Slide 6: is at the center of our advantage (1/2)
is at the center of our advantage (1/2) Unified technology, data, processes and organization to drive competitive advantage CUSTOMIZED PRICING ACTIVATION BREADTH AND PERSONALIZATION DEPTH Offer excellence Customer engagement @ SCALE CUSTOMER DATA EXPERIENCE Integration Multibrand Omnichannel capabil
Slide 7: is at the center of our advantage (2/2)
is at the center of our advantage (2/2) Unified technology, data, processes and organization to drive competitive advantage PRICING CUSTOMIZED ACTIVATION Multi-channel orchestration and Best-in-class solutions to effectively communication manage products payout (relevant content at the relevant time
Slide 8: an integrated MarTech ecosystem
: an integrated MarTech ecosystem Strong integration between transactional data and deep behavioral data to boost personalization and maximize customer engagement Data ingestion from diverse sources, supported by benchmarking process, to enable inside-out and In-depth analysis of user behaviors outs
Slide 9: Offer Excellence - Example AI led Risk Management
Offer Excellence - Example CUSTOMER EXPERIENCE PRICING AI led Risk Management Automatic ticket management BOT users detection # GAs detected: The AI Model predicts and decides if each ticket is: GBO ▪ Clearly profitable - ticket automatically accepted and sold Betflag ▪ Clearly not profitable - tick
Slide 10: Offer Excellence - Example
Offer Excellence - Example BREADTH AND DEPTH CUSTOMER EXPERIENCE PRICING AI predictive modelling of Casino content offering STATIC / ALGORITHM BASED AI BASED Currently in production on a subset of customers. To be Generic player Specific player extended to the entire customer base Content selected b
Slide 11: Customer Engagement - Example
Customer Engagement - Example CUSTOMIZED ACTIVATION Tailored communication boost Engagement and ARPU Granular customer segmentation (acquisition channels, product affinity, financial clustering, profitability metrics). Integration of multiple data streams enabling user profile enrichment to allow ad
Slide 12: Customer Engagement - Example
Customer Engagement - Example PERSONALIZATION @ SCALE Personalization drives 3X Players & ARPU Generation of personalized banners Generation of personalized banners Mapping of customers interests with AI and matching vs target with AI and matching vs target through 3rd party data segment segment Ban
Slide 13: Full potential impact yet to be captured: all brands, full scale, more features
Full potential impact yet to be captured: all brands, full scale, more features Inception Growth Expansion Scale-up 2023 2024 2025 2026 ▪ Paid media profitability ▪ 3rd party data injection and ▪ Webpage personalization ▪ Personalization and enhancement advanced segmentation through Predictive AI ma
Slide 14: Q1 2025 Financial Highlights
Q1 2025 Financial Highlights Laurence Van Lancker, CFO
Slide 15: Group financial highlights
Group financial highlights Revenues (€m) Adjusted EBITDA (€m) YoY % reported Bets (€m) 8,734 11,179 +28% Adj. EBITDA 34.0% 37.6% GGR (€m) 1,014 1,224 +21% Margin YoY % (1) +33% reported 586 220 +47% 440 150 Q1 2024 Q1 2025 Q1 2024 Q1 2025 YoY % YoY % @norm. PO @norm. PO Q1 Revenues Q1 Adj. EBITDA 17
Slide 16: Financial highlights by segment
Financial highlights by segment Revenues (€m) Adjusted EBITDA (€m) Online Sports Franchise Gaming Franchise YoY % YoY % Adj. EBITDA YoY % YoY % reported @norm. PO margin % reported @norm. PO (1) 37.6% +47% +18% 586 +33% +21% 220 440 196 46 23.7% -1% -1% +0% +0% 150 46 30.4% +132% +11% 195 150 47 +59
Slide 17: Operating cash flow
Operating cash flow Capex (€m) Operating cash flow(3) (€m) Recurring Concession One-off/Growth Capex as % of revenues(1) 9% 6% Main items include: • Carry-over 2024 bolt-on (€15m) • Integration (€10m) (2) • Deferred (€4m) 65 184 52 29 13 19 15 110 20 21 Q1 2024 Q1 2025 Q1 2024 Q1 2025 Notes: (1) Bas
Slide 18: Net financial debt and leverage evolution
Net financial debt and leverage evolution Include integration costs of c.€11m 1,873 220 29 31 1,805 (1) 65 10 18 NFD as of Adjusted EBITDA Net working capital Capex Goldbet deferred Financial expenses Other NFD as of 31 Dec 2024 consideration and leases 31 Mar 2025 €173m(1) Cash €242m(2) 2.4x NFD /
Slide 19: Refinancing executed in April 2025
Refinancing executed in April 2025 ▪ On 24th of April, Lottomatica Group successfully priced SSN due 2031 for €1,100m to redeem the existing €565m SSN due 2028 and the €500m FRN due 2030 ▪ Yearly coupon of 4.875% ▪ Run-rate interest savings of ~€24m per annum ▪ S&P and Moody’s upgraded Lottomatica’s
Slide 20: Appendix
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Slide 21: Bets, GGR, Revenues, Adj. EBITDA and Margin details (Reported)
Bets, GGR, Revenues, Adj. EBITDA and Margin details (Reported) (€m) Q1 2025 Q1 2024 YoY Bets Online 7,363 5,055 +46% Sports Franchise 1,046 822 +27% Gaming Franchise 2,769 2,857 (3%) Total 11,179 8,734 +28% GGR Online 428 256 +67% Sports Franchise 192 119 +61% Gaming Franchise 605 639 (5%) Total 1,2
Slide 22: Bets, GGR, Revenues, Adj. EBITDA and Margin details (LFL)
Bets, GGR, Revenues, Adj. EBITDA and Margin details (LFL) (€m) Q1 2025 Q1 2024 LfL YoY LfL Bets Online 7,363 6,418 +15% Sports Franchise 1,046 1,052 (1%) Gaming Franchise 2,769 2,857 (3%) Total 11,179 10,326 +8% GGR Online 428 344 +25% Sports Franchise 192 152 +26% Gaming Franchise 605 639 (5%) Tota
Slide 23: Income statement (Reclassified)
Income statement (Reclassified) P&L (€m) Q1 2025 Q1 2024 FY 2024 Revenues(1) 586 440 2,005 Adjusted EBITDA(2) 220 150 707 D&A (exc. PPA) (47) (38) (171) Adjusted EBIT 173 112 536 Financial Charges, Net (excl. Extraordinary costs and other non monetary items) (35) (32) (146) Income tax expense (excl.
Slide 24: Cash flow statement (Reclassified)
Cash flow statement (Reclassified) Cash Flow (€m) Q1 2025 Q1 2024 FY 2024 Adjusted EBITDA 220 150 707 Extraordinary monetary costs not included in Adjusted EBITDA (30) (6) (68) Non monetary costs included in Adjusted EBITDA 2 1 4 Corporate taxes - - (79) Delta NWC and other assets / liabilities (9)
Slide 25: Net financial debt as of 31st March 2025
Net financial debt as of 31st March 2025 Net financial debt (€m) 31.03.2025 31.12.2024 Gross Financial Debt 2,047 2,046 EUR 400m FRNs due 2031 400 400 EUR 500m SSNs due 2030 500 500 EUR 500m FRNs due 2030 500 500 EUR 565m SSNs due 2028 565 565 IFRS 16 (leases) 82 81 (1) (2) Cash (242) (173) Net Fina
Slide 26: Share buyback for up to €500m over the next 18 months
Share buyback for up to €500m over the next 18 months Amount ▪ Up to €500m(1) Duration ▪ 18 months Start date ▪ June 2025 ▪ Consistent with our financial policy: Financial discipline o Dividend policy: 30% of Adj. Net Profit o Financial policy: 2.0 - 2.5x net financial leverage ▪ Readily available t
Slide 27: Disclaimer
Disclaimer This proprietary presentation (including any accompanying oral presentation, question and answer session and any other document or materials distributed with or in connection with this presentation) (collectively, the “Presentation”) has been prepared by Lottomatica Group S.p.A. (the “Com