Lottomatica S p A : Press release - LOTTOMATICA GROUP S.P.A

About this update from Lottomatica Group S.p.a.

LOTTOMATICA GROUP S.P.A. CONTINUED STRONG MOMENTUM IN Q2 2025: ONLINE GGR YOY GROWTH OF +19%1, ADJ. EBITDA YOY GROWTH OF +20% REACHING €202M, COMPLETED THE REPLATFORMING OF PWO, c. 2% OF ONLINE MARKET SHARE SECURED 2 , BUYBACK PROGRAM STARTED ON 18 th JUNE. Rome (Italy) , 31 July 2025 - The Board of Directors of Lottomatica Group S.p.A., which met on 30 July 2025, approved the Condensed Consolidated Interim Financial Statements as of and for the six months ended 30 June 2025. H1 2025 Results summary 3 Bets of Euro 21.8 billion, +21% compared to H1 2024 Online bets growth YoY of +34% GGR4 of Euro 2,359.5 million, +13% compared to H1 2024 Total Online market share: at 30.5% in Q2 (+1.4 p.p. versus Q2 2024) iSports market share: at 31.8% in Q2 (+2.1 p.p. versus Q2 2024) iGaming market share: at 30.5% in Q2 (+1.0 p.p. versus Q2 2024) Revenues of Euro 1,128.9 million5 , +21% compared to H1 2024 , +15% at normalised payout 6 ; Euro 543.1 million in Q2 2025, +10% compared to Q2 2024 Online of Euro 463.3 million, +37% compared to H1 2024, +29% at normalised payout 6 ; Euro 223.4 million in Q2 2025, +19% compared to Q2 2024 Sports Franchise of Euro 279.3 million, +31% compared to H1 2024, +14% at normalised payout 6 ; Euro 128.9 million in Q2 2025, +8% compared to Q2 2024 Gaming Franchise of Euro 386.4 million 5 , +2% compared to H1 2024; Euro 190.9 million in Q2 2025, +3% compared to Q2 2024 Adjusted EBITDA 7 of Euro 422.4 million, +33% compared to H1 2024 , +17% at normalised payout 6 ; Euro 201.9 million in Q2 2025, +20% compared to Q2 2024 Operating cash flow 8 of Euro 344.3 million Adjusted Net Profit 9 of Euro 179.3 million Net financial debt at Euro 1,809.0 million equivalent to 2.1x on LTM run-rate Adjusted EBITDA10 PWO integration activities on track: all integration activities expected to be completed by year end. Platform migration completed , both for online and retail. Secured 85% of total synergies announced. Target synergies confirmed at €87 million by 2026 Guidance 6 for fiscal year 2025 confirmed : Euro 2,320 - 2,370 6 million of revenues, Euro 840 - 870 6 million of Adjusted EBITDA ‌1 Excluding both UEFA Euro Cup 2024 and FiFA Club World Cup 2025. Does not include PWO impacted by migration process. ‌2 Commercial deals or control / minority with path to control transactions. Related market share will be leveraged by Lottomati ca with different timings / brands (both Totosì and other Group's brands), depending on the deal. Market share based on ADM market data. ‌ ‌3 Reported data, 2024 figures include PWO contribution from 1 May 2024. ‌4 Market shares are based on GGR. GGR (or gross gaming revenues) refers to the difference between bet and winnings. This applies to the entire document. ‌5 Includes Cristaltec group revenues of Euro 4.1 million, consistent with the approach adopted by management to monitor the results of the operating segments. ‌6 Calculated assuming a normalised sports betting payout of 80.5% for retail and 85.5% for online. 7 Adjusted EBITDA is calculated as net profit for the period adjusted for: income tax expense; finance income and expenses; share of profit/(loss) of equity accounted investments; depreciation, amortization and impairments ; Adjusted EBITDA (as defined herein) of equity accounted investments in which the Group holds an interest of more than 50%; costs related to M&A and international activities; integration costs and other income and expenses that are not reasonably expected to arise in future periods . This applies to the entire document. ‌8 Operating cash flow is calculated as Adjusted EBITDA net of recurring capex and concession capex. ‌9 Adjusted Net Profit calculated as net profit for the period adjusted for: (i) amortization of higher value of assets resulting from business combinations following the purchase price allocation process; (ii) other non-recurring costs and income excluded from Adjusted EBITDA, (iii) financial income and expenses that, due to their nature, are not reasonably expected to recur in future periods, (iv) other n on-monetary items including in financial expenses and (v) tax effects on such adjustments. ‌ 10 LTM run-rate Adjusted EBITDA is calculated as Adjusted EBITDA for the last twelve months ended 30 June 2025, proforma for bolt-ons and PWO run-rate synergies. C. 2% of online market share already secured by Lottomatica for future exploitation 2 Buyback program started on 18 th June 2025 : 1,333,167 shares acquired to date 11 Apollo exited their entire holding in Lottomatica Group on 19 th June 2025. Guglielmo Angelozzi, Chairmanand Chief Executive Officer of Lottomatica Group , commented: "In the second quarter of 2025 we have continued our solid path of double-digit organic growth for Revenues and EBITDA, supported by solid market tailwinds. We have completed the migration of PWO onto our proprietary tech platform thereby positioning Planetwin to fully leverage our capabilities to capture market growth. Finally, in June we have started the buyback programme, which will continue to compete with M&A and other capital allocation opportunities, with a view to maximise shareholder returns". *** Key consolidated results for H1 2025 Please note that PWO has been consolidated in the reported numbers since 1 May 2024. Bets by segment (Euro million, %) H1 2025 H1 2024 YoY % Online 14,387 10,716 +34% Sports Franchise 1,979 1,687 +17% Gaming Franchise 5,430 5,564 (2%) Total Bets 21,796 17,968 +21% In H1 2025, Lottomatica collected bets for Euro 21.8 billion, +21% compared to H1 2024. The Online segment continued to grow faster, with bets up +34% compared to H1 2024. ‌11 Total shares acquired as of 29 July 2025. Revenues by segment (Euro thousands, %) H1 2025 H1 2024 YoY % YoY @ PO normalised 6 (%) Online 463,258 338,295 +37% +29% Sports Franchise 279,257 213,682 +31% +14% Gaming Franchise 5 386,355 379,830 +2% +2% Revenues 5 1,128,870 931,807 +21% +15% Revenues amounted to Euro 1,128.9 million 5 in H1 2025, compared to Euro 931.8 million in the H1 2024, with an increase of +21%. The Online segment revenues amounted to Euro 463.3 million in H1 2025, +37% compared to the same period of 2024, with a strong performance driven also by the market share growth across all product segments and brands as well as the contribution from the PWO acquisition and a favourable sport betting payout during the period, notwithstanding the migration of PWO started in May (which was completed by July) and the unfavourable impact deriving from the UEFA Euro Cup in the second quarter of 2024, partially compensated by the FIFA World Club Cup in the second quarter of 2025. The Sports Franchise segment reported Euro 279.3 million in revenues in H1 2025, +31% compared to the same period of previous year mainly due to the contribution f rom PWO acquisition and a favourable sport betting payout during the period, notwithstanding the unfavourable impact deriving f rom the UEFA Euro Cup in the second quarter of 2024, partially compensated by FIFA World Club Cup in the second quarter of 2025. The Gaming Franchise segment revenues reached Euro 386.4 million 5 in H1 2025, +2% compared to the same period of previous year. Adjusted EBITDA and margin by segment (Euro thousands, %) H1 2025 H1 2024 YoY % YoY @ PO normalised 6 (%) Online 250,670 54.1% 177,974 52.6% +41% +29% Sports Franchise 81,257 29.1% 50,667 23.7% +60% +6% Gaming Franchise 90,488 23.4% 88,657 23.3% +2% +2% Adjusted EBITDA 422,415 37.4% 317,298 34.1% +33% +17% Adjusted EBITDA reached Euro 422.4 million in H1 2025, +33% compared to H1 2024. Adjusted EBITDA margin is equal to 37.4% on revenues, compared to 34.1% in H1 2024, driven also by the favourable payout and notwithstanding the consolidation of PWO, which has lower margins. Operating cash flow (Euro thousands) H1 2025 H1 2024 Adjusted EBITDA 422,415 317,298 Recurring capex (46,702) (41,514) Concession capex (31,450) (47,765) Operating cash flow 344,263 228,019 Operating cash f low in H1 2025 was Euro 344.3 million, compared to Euro 228.0 million for the H1 2024, mainly due to higher Adjusted EBITDA. Net financial debt (Euro million) 30 June 2025 31 December 2024 Gross Financial Debt 2,080.3 2,046.2 EUR 400m FRNs due 2031 400.0 400.0 EUR 500m SSNs due 2030 500.0 500.0 EUR 1,100m SSNs due 2031 1,100.0 EUR 500m FRNs due 2030 - 500.0 EUR 565m SSNs due 2028 - 565.0 IFRS 16 (leases) 80.3 81.2 Cash12 (271.4) (173.3) Net Financial Debt 1,809.0 1,872.8 LTM run-rate Adjusted EBITDA 10 867.0 792.9 Net leverage 2.1x 2.4x Net f inancial debt amounted to Euro 1,809.0 million as of 30 June 2025, equivalent to a net leverage of 2.1x on LTM run-rate Adjusted EBITDA 10 . *** Management will hold a conference call at 10:00 CEST on 31 July 2025 to comment the consolidated results to the market. The event can be followed: via phone by pre-registering at the following link: Registration | H1 2025 Results via Webcast ‌12 As of 31 December 2024, the item includes PWO guarantee deposits of Euro 9 million, collected in January 2025. The manager in charge of preparing the company's accounting documents, Laurence Lewis Van Lancker, declares, pursuant to par. 2 of Art. 154-bis of the Consolidated FinanceAct, that the accounting information contained in this press release corresponds to the documented results, books and accounting records. Consolidated statement of comprehensive income For the six months ended 30 June (in thousands of Euro) 2025 202413 Revenues 1,124,781 931,807 Other income 6,032 6,929 Total revenues and income 1,130,813 938,736 Cost of services (665,458) (556,869) Personnel expenses (78,776) (64,816) Other operating costs (18,558) (18,138) Depreciation, amortization and impairments (129,237) (112,013) Impairment of receivables and financial assets (9,621) (347) Other (accruals)/ releases 224 (825) Finance income 2,109 7,978 Finance expenses (123,423) (137,687) Share of profit of equity accounted investments 150 - Profit before tax 108,223 56,019 Income tax expense (40,026) (32,587) Net profit for the period 68,197 23,432 Net profit for the period attributable to non-controlling interests 3,365 2,815 Net profit for the period attributable to the owners of the parent 64,832 20,617 For the six months ended 30 June (Euro thousands) 2025 2024 13 Net profit for the period 68,197 23,432 Actuarial gains on employee benefit liabilities 625 411 Fiscal effect on actuarial gains on employee benefit liabilities (150) (99) Other items that will not be classified to profit or loss 475 312 Gains on hedging derivatives 4,487 11,172 Fiscal effect on gain on hedging derivatives (1,079) (2,683) Gains / (losses) on conversion of financial statements of the foreign companies (10) 13 Other items that will be classified to profit or loss 3,398 8,502 Total comprehensive profit 72,070 32,246 Total comprehensive profit attributable to non-controlling interests 3,365 2,815 Total comprehensive profit attributable to the owners of the parent 68,705 29,431 ‌13 Consolidated statement of comprehensive Income figures for the six months ended 30 June 2024 have been restated following the completion of the purchase price allocation relating to Ricreativo B S.p.A. and PWO acquisition. Consolidated statement of financial position As of 30 June As of 31 December (in thousands of Euro) 2025 2024 Intangible assets 782,900 697,953 Goodwill 2,074,980 2,048,563 Property, plant and equipment 156,032 148,460 Right of use 73,979 74,398 Investment property 422 435 Non-current financial assets 2,008 2,037 Equity accounted investments 12,896 - Non-current trade receivables 467 636 Deferred tax assets 5,896 10,565 Other non-current assets 19,220 15,815 Total non-current assets 3,128,800 2,998,862 Inventories 1,594 1,478 Current trade receivables 90,715 77,349 Current financial assets 30,945 30,396 Tax receivables 691 2,158 Other current assets 117,996 162,079 Cash and cash equivalents 271,360 164,156 Total current assets 513,301 437,616 Total assets 3,642,101 3,436,478 Share capital 10,000 10,000 Other reserves 398,198 405,959 Retained earnings 91,735 102,010 Total shareholders' equity attributable to the owners of the parent 499,933 517,969 Equity attributable to non-controlling interests 51,160 47,534 Total shareholders' equity 551,093 565,503 Employee benefit liabilities 28,082 26,730 Non-current financial liabilities 2,086,075 2,048,436 Provisions for risks and charges 38,679 6,164 Deferred tax liabilities 144,247 152,130 Other non-current liabilities 87,098 53,200 Total non-current liabilities 2,384,181 2,286,660 Current financial liabilities 105,878 100,391 Current trade payables 119,930 133,702 Tax payables 12,487 23,147 Other current liabilities 468,532 327,075 Total current liabilities 706,827 584,315 Total equity and liabilities 3,642,101 3,436,478 Consolidated statement of cash flows (in thousands of Euro) For the six months ended 30 June INDIRECT METHOD 2025 202414 Profit before tax 108,223 56,019 Reconciliation of profit before tax with cash flow from operating activities: Depreciation, Amortization and Impairment 129,237 112,013 Accruals and write-downs for impairment losses 9,397 1,172 Other accruals 1,661 1,541 Share of profit of equity accounted investments (150) - Net financial expenses 119,109 127,623 Leasing financial expenses 2,205 2,086 Other adjustments for non-monetary items 2,139 (75) Cash flow from operating activities before changes in net working capital 371,821 300,379 Changes in net working capital Decrease/(increase) in inventories (116) 167 Decrease in trade receivables 9,572 12,277 Increase / (Decrease) in trade payables (8,720) 921 Other changes in net working capital 87,106 27,784 Cash flow from changes in net working capital 87,842 41,149 Income taxes paid (45,514) (33,667) Accruals to employee benefits and provisions for risks and charges (1,217) (1,285) Cash flow from operating activities (a) 412,932 306,576 Cash flow from investing activities Investments: (97,026) (105,138) - intangible assets (60,233) (74,333) - property, plant and equipment (36,793) (30,805) Investments in associates (4,228) - Escrow account - 504,464 Deferred purchase consideration for acquisition of subsidiaries/business units (29,152) (54,146) Acquisitions net of cash and cash equivalents (13,627) (593,150) Cash flow from investing activities (b) (144,033) (247,970) Cash flow from financing activities Proceeds from bond issuance 1,100,000 900,000 Repayment of notes (1,065,000) (900,000) Bridge loan fees and make-whole costs (21,018) (32,693) Fees of issuance of notes (12,308) (19,542) Net financial expenses including RCF (73,218) (91,670) Lease payment (13,838) (12,066) Repayment of other bank liabilities (1,543) (1,254) Changes in current and non-current financial assets 896 2,272 Transactions with minorities 153 (3,665) Dividends paid (75,819) (65,493) Cash flow from financing activities (c) (161,695) (224,111) Net Cash flow (a+b+c) 107,204 (165,505) Cash and cash equivalents at the beginning of the period 164,156 294,682 Cash and cash equivalents at the end of the period 271,360 129,177 ‌14 Consolidated statement of cash flows figures for the six months ended 30 June 2024 have been restated following the completion of the purchase price allocation relating to Ricreativo B S.p.A. and PWO acquisition. Reconciliation of Non-GAAP Measures Adjusted EBITDA (in thousands of Euro) H1 2025 H1 202415 FY 2024 Net profit for the period 68,197 23,432 103,839 Income tax expense 40,026 32,587 77,052 Net financial expenses 121,314 129,709 206,362 Share of profit of equity accounted investments (150) - (1,663) Depreciation, amortization and impairment 129,237 112,013 244,353 Adjusted EBITDA from equity accounted investments 1,381 - - Cost related to M&A and international activities 3,279 4,666 8,298 Integration costs 24,390 6,026 33,713 Other non-recurring (income) / expenses (monetary) 24,242 7,212 26,480 Other non-recurring (income)/expense (non-monetary) 10,499 1,653 8,488 Adjusted EBITDA 422,415 317,298 706,922 Adjusted Net Profit (in thousands of Euro) H1 2025 H1 2024 15 FY 2024 Net profit for the period 68,197 23,432 103,839 Amortization of assets resulting from business combinations 35,875 32,861 73,079 Other non-recurring costs and income excluded from Adjusted EBITDA 16 62,410 19,557 75,316 Adjustments related to refinancing and PWO Acquisition 46,690 52,360 52,360 Of which: - Make-whole on notes repaid 21,018 26,443 26,443 - Effect of acceleration of the unamortized costs and net charge IRS on notes repaid 25,672 21,663 21,663 - Negative carry (net of accrued interest received from escrow account) - 4,254 4,254 Other non-recurring finance expenses 1,542 - - Other non-monetary items including in financial expenses 5,640 6,499 8,375 Tax effect (IRES + IRAP) (41,065) (29,383) (58,709) Adjusted Net Profit 179,289 105,326 254,260 ‌15 Figures for the six months ended 30 June 2024 have been restated following the completion of the purchase price allocation relating to Ricreativo B S.p.A. and PWO acquisition. ‌16 The item includes non-recurring income from equity accounted investments amounting to Euro 1.7 million as of 31 December 2024. Further information Mirko Senesi Head of Investor Relations, Capital Markets and M&A [email protected] [email protected] Disclaimer This press release contains forward-looking statements, which are subject to known and unknown risks, uncertainties, and assumptions that are difficult to predict because they relate to events and depend on circumstances that will occur in the future. Many of these risks and uncertainties relate to factors that are beyond the company's ability to control or estimate precisely, such as future market conditions, currency fluctuations, the behaviour of other market participants, the actions of regulators and other factors. Therefore, the Company actual results may differ materially and adversely from those expressed or implied in any forward-looking statements. Factors that might cause or contribute to such differences include, but are not limited to, economic conditions globally, social, political, economic and regulatory developments or changes in economic or technological trends or conditions in Italy and internationally. Consequently, the Company makes no representation, whether expressed or implied, as to the conformity of the actual results with those projected in the forward-looking statements. Any forward-looking statements made by or on behalf of the Company speak only as of the date they are made. The Company does not undertake to update forward-looking statements to reflect any changes in the Company expectations with regard thereto or any changes in events, conditions or circumstances on which any such statement is based. The reader should, however, consult any further disclosures the Company may make in documents it files with the Italian Securities and Exchange Commission and with the Italian Stock Exchange. *** About Lottomatica Group S.p.A. With approximately Euro 39 billion bets and Euro 2.0 billion of consolidated revenues in FY 2024, Lottomatica is the leader player in the Italian gaming market. It operates across three segments: Online, Sports Franchise and Gaming Franchise. Lottomatica offers safe and engaging gaming experiences across all channels. The Group counts on the expertise of approximately 2,700 direct employees and its large franchising network. As of 31 December 2024 Lottomatica has a customer base of more than 2 million online customers and distributes its gaming products across approximately 17,800 points of sales.

View stock analysis, news, and events for Lottomatica Group S.p.a.