Quarterly financial report - LOTTOMATICA GROUP S.P.A

Interim Management report as of and for the three months ended 31 March 2025

LOTTOMATICA GROUP S.p.A.

Via degli Aldobrandeschi 300 00163 ROME (RM)

Share capital Euro 10,000,000.00 (fully paid up)

Tax Code 11008400969

Rome Business Register No. RM - 1694552 https://www.lottomaticagroup.com

Contents

Corporate bodies and external auditor 3

Interim management report 4

Corporate information 4

Consolidated statement of comprehensive income 29

Consolidated statement of financial position 30

Consolidated statement of cash flows 31

Consolidated statement of changes in equity 32

Board of Directors

Andrea Moneta Chairman

Guglielmo Angelozzi Chief Executive Officer

John Paul Maurice Bowtell Director

Michele Rabà Director (b)

Michael Ian Saffer Director

Yulia Shakhova Director

Catherine Renee Anne Guillouard Director (a) (d)

Augusta Iannini Independent Director* (a) (c)

Gaia Mazzalveri Independent Director* (a) (c)

Marzia Mastrogiacomo Independent Director* (b) (d)

Nadine Farida Faruque Independent Director* (b) (c) (d)

Appointed by the Shareholders' Meeting on 27 February 2023 until the approval of the financial statements as of 31 December 2025.

* Independent director pursuant to Article 147-ter, paragraph 4, and Article 148, paragraph 3, of the TUF and Article 2 of the Corporate Governance Code.

(a)Control and Risks Committee member.

(b)Appointments and Remuneration Committee member.

(c) )Related parties Committee member.

(d)ESG Committee member.

Board of Statutory Auditors

Andrea Lionzo Chairman

Giancarlo Russo Corvace Auditor

Veronica Tibiletti Auditor

Angela Frisullo Alternative Auditor

Alberto Incollingo Alternative Auditor

Appointed by the Shareholders' Meeting on 15 March 2023 and took office on 3 May 2023 until the approval of the financial statements as of 31 December 2025.

Independent External Auditors PricewaterhouseCoopers S.p.A.

‌Interim management report

Lottomatica Group S.p.A. (hereinafter "Lottomatica Group" or the ''Company'' and together with its subsidiaries the ''Group''), was incorporated on 15 October 2019 on behalf of funds managed by Apollo Management IX, L.P. The Company is domiciled in Italy, with registered offices in Rome, Via degli Aldobrandeschi, 300, organized under the laws of the Republic of Italy. The Company's ultimate controlling entity is Apollo Management, L.P., a limited company incorporated under the laws of the State of Delaware (USA). The Company is listed on Euronext Milan, a regulated market organized and managed by Borsa Italiana S.p.A., since 3 May 2023.

It should be noted that, on 24 April 2024, GBO S.p.A. completed the acquisition of 100% of the share capital of SKS365 Malta Holdings Limited (merged into GBO S.p.A. during the 2025) for a consideration of Euro 621.5 million (the "SKS365 Acquisition"), following the customary regulatory and competition approvals. The company was consolidated starting from 30 April 2024. It is also noted that, SKS365 Malta Limited, a subsidiary of SKS365 Malta Holdings Limited, was renamed to PWO Limited (now PWO S.p.A., hereinafter "PWO") following the acquisition.

The information in this interim management report refers to the three months ended 31 March 2025 and 2024. It is recalled that the first consolidation of PWO took place on 30 April 2024 and, therefore, all financial information and business-related information (i.e., bet, number of points of sales, rights, etc.) presented in this report do not include its contribution for the three months ended 31 March 2024.

1. Overview

   The Group is the largest player in the Italian gaming market1, with Euro 11.2 billion in bets collected (of which Euro 1.7 billion related to PWO) and Euro 585.7 million in Revenues for Reportable Segment (of which Euro 86.1 million related to PWO) recorded during the three months ended 31 March 2025, through a network of 4,0242 betting rights (of which 1,003 related to PWO), 26 horse-race betting rights, 19,831 VLT rights, 68,022 NOE AWP operating permits and 43,913 owned AWPs3 and a network of around 17,597 points of sale of which 131 managed directly as of 31 March 2025.

   The Group has the following operating segments: Online, Sports Franchise and Gaming Franchise, as described below.

   ‌1Based on revenues.

   ‌2Including 8 betting rights of Ricreativo B S.p.A..

   ‌3The figure as of 31 March 2025 does not consider AWP machines that the group holds in inventory.

   1. Online

      The Group's Online activity comprises the offer of a wide range of online games through the

      GoldBet.it, Better.it, Lottomatica.it, Betflag.it, Totosì.it and Planetwin365.it websites, as follows:
      • iSports: sports betting, virtual betting and horse betting;
      • iGaming: online casino games;
      • other online products: such as bingo, poker, betting exchange and skill games.

        The Online segment generated bets of Euro 7,363.5 million (of which Euro 1,467.9 million related to PWO) for the three months ended 31 March 2025, an increase compared to Euro 5,054.9 million for the three months ended 31 March 2024.

   2. Sports Franchise

      The Group's Sports Franchise activity consists in the collection of sports betting, virtual betting and horserace betting through a franchise network of 3,769 operating PoS (of which 921 related to PWO) as of 31 March 2025, through GoldBet, Intralot, Better and Planetwin365 brands. The Sports Franchise segment generated bets of Euro 1,046.3 million for the three months ended 31 March 2025 (of which Euro 221.4 million related to PWO) compared to Euro 822.0 million for the three months ended 31 March 2024.

   3. Gaming Franchise

      The Group's Gaming Franchise business comprises direct management of gaming halls and concession activities for VLTs and AWPs, managed according to different types of business models depending on the level of integration in the value chain. These business models range from the sole interconnection of machines prescribed by the concession to the ownership and management of the machines and the gaming halls. As of 31 March 2025, the Group's Gaming Franchise business included 18,371 operative VLTs and 63,145 operative AWPs. For the three months ended 31 March 2025, there were 131 gaming halls under direct management of the Group, which leveraged the Group's proprietary distribution formats and brands.

      The Gaming Franchise segment generated bets of Euro 2,769.5 million for the three months ended 31 March 2025, compared to Euro 2,856.9 million for the three months ended 31 March 2024. The following paragraphs provide more specific details regarding the i) AWP, ii) VLT and iii) Retail and Street Operations product divisions.

      Amusement With Prize machines (AWPs)

      AWPs are relatively easy to play and offer players a good level of interaction, through the use of a graphical reel containing pictures.

      The maximum cost of each single game is Euro 1.00 and each game may last between four and thirteen seconds. Any winnings must be distributed immediately after the game (only) in coins and jackpots are

      not permitted4. The machine must calculate winnings in an unpredictable way over a cycle of a maximum of 140,000 games.

      Video Lottery Terminals (VLTs)

      VLTs are similar to slot machines, except that they are connected to a centralized computer system that determines the outcome of each wager by using a random number generator located inside the terminal.

      Relevant legislation requires that bet per game may range from a minimum of Euro 0.50 to a maximum of Euro 10.00, with payouts of up to Euro 5,000.00 as well as the chance to win jackpots of up to Euro 500,000.005. The Group currently offers four VLT platforms (Spielo, Novomatic, Inspired and WMG).

      Management of owned gaming halls and AWPs (Retail and Street Operations)

      Since 2012, the Group has pursued a strategy of vertical integration involving the direct management of owned gaming halls ("Retail"), with such business being subsequently supplemented by direct management of owned AWPs ("Street Operations"). As of 31 March 2025, the Group directly manages 131 halls and 43,913 owned AWPs6.

2. Alternative performance measures

   This document includes, in addition to the financial measures provided by International Financial Reporting Standards (IFRS), several measures derived from the latter even if not defined by IFRS (hereinafter the "Non-GAAP Measures") which are presented in accordance with the provisions of the recommendations contained in the document prepared by ESMA, No.1415 of 2015, published on 5 October 2015, as incorporated by Consob Communication 0092543 dated 3 December 2015. These measures are consistent with the approach adopted by the Group's management for monitoring business performance (as described in Note 6 to the Condensed Consolidated Interim Financial Statements) and are presented to facilitate a more comprehensive understanding of the Group's performance. They should not be considered alternatives to the measures provided by IFRS. Specifically, the Non-GAAP Measures used are as follows:

   • Revenues for Reportable Segment: defined as consolidated revenue adjusted to include the revenue of equity accounted investments in which the Group holds an interest of more than 50%.
   • Adjusted EBITDA: calculated as net profit for the period adjusted for: (i) income tax expense; (ii) finance income; (iii) finance expenses; (iv) share of profit/(loss) of equity accounted investments; (v) depreciation, amortization and impairments; (vi) Adjusted EBITDA, (as defined herein), of equity accounted investments in which the Group holds an interest of more than 50% (vii) costs related to

     ‌4By law, monetary winnings must not exceed Euro 100 for a single play and as of January 2020, the minimum pay-out is set by law at 65.0% (Law No. 160 of 27 December 2019 - the so-called "2020 Budget Law" - effective as of 1 January 2020). For details regarding the evolution of PREU flat-tax rates, see the relevant comments in the consolidated financial statements as of and for the year ended 31 December 2024.

     ‌5As of January 2020, the percentage of bets paid out as winnings may not be lower than 83.0% (Law No. 160 of 27 December 2019 - the so-called "2020 Budget Law" - effective as of 1 January 2020). For details regarding the evolution of PREU flat-tax rates, see the relevant comments in the consolidated financial statements as of and for the year ended 31 December 2024.

     ‌6The figure as of 31 March 2025, does not consider AWP machines that the Group holds in inventory.

     M&A and international activities; (viii) integration costs (including expenses on corporate restructuring, redundancy and costs incurred in relation to renegotiated contracts); and (ix) other income and expenses that, in view of their nature, are not reasonably expected to recur in future periods.

   • Adjusted EBITDA Margin: calculated as the ratio of Adjusted EBITDA divided by Revenues for the period.
   • Adjusted EBIT: calculated as net profit for the period adjusted for: (i) income tax expense; (ii) finance income; (iii) finance expenses; (iv) share of profit/(loss) of equity accounted investments; (v) amortization of higher value of assets resulting from business combinations following the purchase price allocation process ("PPA"); and (vi) other non-recurring costs and income excluded from Adjusted EBITDA.
   • 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 PPA process; (ii) other non-recurring costs and income excluded from Adjusted EBITDA, (iii) finance income and expenses that, due to their nature, are not reasonably expected to recur in future periods, (iv) other non-monetary items recorded in finance expenses and (v) tax effects on such adjustments.
   • Adjusted Net Profit per Share: calculated as Adjusted Net Profit divided by the outstanding number of shares of the Company.
   • Cash Capital Expenditures: calculated as cash outflows for (i) recurring capital expenditure, (ii) concession capital expenditure and (iii) extraordinary capital expenditure related to investments for extraordinary projects and deferred consideration for the acquisition of subsidiaries and business units.
   • Operating Cash Flow: defined as the sum of Adjusted EBITDA less (i) recurring capex and (ii) concession capex.
   • Cash Conversion Rate: calculated as the ratio of Operating Cash Flow divided by Adjusted EBITDA.
   • Net Financial Debt: calculated as the sum of (i) the principal amount of the notes, (ii) payables related to IFRS 16, net of (iii) cash and cash equivalents.
   • Net Financial Indebtedness - ESMA: determined as required by Consob Communication DEM/6064293 of 28 July 2006 and amended by Consob Communication No. 5/21 of 29 April 2021 and in accordance with ESMA Recommendations contained in Guidelines 32-382-1138 of 4 March 2021 on disclosure requirements under the Prospectus Regulation.

   The following table provides details of the main financial and economic indicators for the periods indicated:

   As of and for the three months ended 31 March

   As of and for the year ended 31 December

   (in thousands of Euro) 2025 2024* 2024

   Revenues	584,548	440,079	2,004,725
   Revenues for Reportable Segment**	585,737	440,079	2,004,725
   Adjusted EBITDA	220,474	149,521	706,922
   Adjusted EBIT	173,030	111,838	535,648
   Adjusted Net Profit	94,747	49,661	254,260
   Profit for the period	51,541	29,866	103,839
   Total shareholders' equity	618,072	571,140	565,503
   Net Financial Indebtedness - ESMA	1,947,438	1,334,665	1,954,275
   Net Financial Debt	1,804,886	1,224,143	1,872,825
   Cash Capital Expenditures	(75,269)	(52,042)	(261,501)
   Operating Cash Flow	184,389	110,053	556,831
   Cash Conversion Rate	83.6%	73.6%	78.8%

   * Figures for the three months ended 31 March 2024 have been restated following the completion of the purchase price allocation relating to Ricreativo B S.p.A..

   ** Includes Cristaltec group revenues of Euro 1.2 million for the three months ended 31 March 2025, consistent with the approach adopted by management to monitor the results of the operating segments.

   Disclaimer

   This document contains forward-looking statements (in particular in the sections headed "Foreseeable operating performance" and "Significant events occurring after the reporting date") 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 behavior 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.

3. Macroeconomic context

   At a time of exceptionally high geopolitical uncertainty, global economic activity is showing signs of a slowdown. On 2 April, the US administration announced a drastic increase in tariffs on almost all other countries. The announcement of the new tariffs sparked a rapid and sharp correction in international financial markets: share prices recorded heavy losses, especially in the sectors most exposed to world trade.

   Euro area GDP continued to rise moderately in the early months of the year, supported by the ongoing growth in consumption. In its January and March meetings, the Governing Council of the European Central Bank lowered its deposit facility rate further, by 50 basis points in total, bringing it to 2.5 per cent, 150 basis points below where it was at the peak reached in June 2024. Markets expect further cuts in interest rates during 2025.

   In line with the European context, Italy's GDP increased moderately in the early months of the year. Economic activity was driven by consumption dynamics, in turn supported by stable employment and by rising wages. However, investments in capital goods remains weak, in part due to the low level of capacity utilization and to still tight credit conditions. Economic activity was supported by services; manufacturing improved slightly, but looking ahead, it may suffer from the effects of the new tariffs and, more generally, from global instability. 7

   The following table shows the key information relating to the performance of the Italian economy updated to the last quarter:

   I Q II Q III Q IV Q I Q II Q III Q IV Q I Q II Q III Q IV Q I Q

   Gross

   Domestic 2022 2022 2022 2022 2023 2023 2023 2023 2024 2024 2024 2024 2025

   Product8

   +0.1% +1.0% +0.5% -0.1% +0.5% +0.6% -0.4% +0.2% +0.3% +0.2% +0.0% +0.0% +0.1%

   As of 31 March 2025, inflation in Italy increased by 1.9%9 on an annual basis due to the acceleration of energy prices and food prices that remain well above inflation. Core inflation, excluding energy and food, remains stable.

   As of 31 March

   2024 2025

   Inflation rate +1.2% +1.9%

   As shown in the graph10 below, the unemployment rate as of 28 February 2025 (latest available data) is lower than that of the same date in 2024. The number of employed people continues to increase. The dynamics of wages during 2025 has allowed the partial recovery of the purchasing power of families.

   ‌7Source: Bank of Italy - Economic Bulletin No. 2 - 2025.

   ‌8Source: Istat - Monthly note on the progress of the Italian economy - January - February 2025.

   ‌9Source: Istat - Press Release - Consumer Price - March 2025.

   ‌10Istat - Employment and Unemployment - February 2025.

   
   
   
4. Key events occurring during the period

   With reference to key events occurring during the reporting period, see Note 11.2 to the condensed consolidated interim financial statements of the Company as of and for the three months ended 31 March 2025 (the "Condensed Consolidated Interim Financial Statements").

5. Evolution of gaming taxes

   For information regarding the evolution of gaming taxes, see the relevant comments in Note 11.7.6 to the consolidated financial statements as of and for the year ended 31 December 2024 ("Annual Consolidated Financial Statements") and in Note 11.2.6 to the Condensed Consolidated Interim Financial Statements.

6. Group's economic performance

   As previously indicated and for the purposes of reading this document, it should be noted that PWO has been consolidated starting from 30 April 2024.

   The following table shows the Group's consolidated income statements for the three months ended 31 March 2025 and 2024:

   For the three months ended 31 March Change

   (in thousands of Euro) 2025 % of revenues

   2024* % of revenues

   (Euro) %

   Revenues	584,548	100.0%	440,079	100.0%	144,469	32.8%
   Other income	3,082	0.5%	3,875	0.9%	(793)	(20.5%)
   Total revenues and income	587,630	100.5%	443,954	100.9%	143,676	32.4%
   Cost of services	(345,634)	(59.1%)	(265,110)	(60.2%)	(80,524)	30.4%
   Personnel expenses	(41,115)	(7.0%)	(26,044)	(5.9%)	(15,071)	57.9%
   Other operating costs	(10,905)	(1.9%)	(8,829)	(2.0%)	(2,076)	23.5%
   Depreciation, amortization and impairments	(64,932)	(11.1%)	(52,297)	(11.9%)	(12,635)	24.2%
   Accruals and impairments	(9,869)	(1.7%)	(249)	(0.1%)	(9,620)	>100.0%
   Net finance expenses	(37,570)	(6.4%)	(39,283)	(8.9%)	1,713	(4.4%)
   Share of profit of equity accounted investments	205	0.0%	-	0.0%	205	100.0%
   Profit before taxes	77,810	13.3%	52,142	11.8%	25,668	49.2%
   Income tax expense	(26,269)	(4.5%)	(22,276)	(5.1%)	(3,993)	17.9%
   Net profit for the period	51,541	8.8%	29,866	6.8%	21,675	72.6%
   Net profit for the period attributable to non-controlling interests	1,255	0.2%	1,528	0.3%	(273)	(17.9%)
   Net profit for the period attributable to the owners of the parent	50,286	8.6%	28,338	6.4%	21,948	77.5%

   * Figures for the three months ended 31 March 2024 have been restated following the completion of the purchase price allocation relating to Ricreativo B S.p.A..

   1. Revenues

      The following table shows revenues by operating segment for the three months ended 31 March 2025 and 2024:

      For the three months ended 31 March Change

      (in thousands of Euro) 2025 % of revenues

      2024 % of

      revenues

      (Euro) %

      Online	239,816	40.9%	150,395	34.2%	89,421	59.5%
      Sports Franchise	150,410	25.7%	94,359	21.4%	56,051	59.4%
      Gaming Franchise*	195,511	33.4%	195,325	44.4%	186	0.1%
      Total Revenues for Reportable Segment	585,737	100.0%	440,079	100.0%	145,658	33.1%
      Elimination of revenues from equity accounted investments	(1,189)	n.a	-	n.a	(1,189)	100.0%
      Total consolidated revenues	584,548	n.a	440,079	n.a	144,469	32.8%

      * Includes Cristaltec group revenues of Euro 1.2 million for the three months ended 31 March 2025, consistent with the approach adopted by management to monitor the results of the operating segments.

      Online

      The following table provides certain key performance indicators for the Online segment for the periods indicated:

      As of and for the three months ended 31

      March

      2025 2024

      Unique active users*	1,332,100	863,803
      Total online bet (in millions of Euro)	7,363.5	5,054.9

      * Unique Active Users refers to the number of customers who have carried out, with one or more game accounts in their name, at least one bets on one or more Online products (not only sports betting) during that period.

      The Online segment generated bets of Euro 7,363.5 million for the three months ended 31 March 2025, an increase of 45.7% compared to the corresponding period of the previous year (Euro 5,054.9 million for the three months ended 31 March 2024). The Online operating segment benefited from the PWO acquisition, which contributed to a significant increase in online gaming offering and has recorded Euro 1,467.9 million of bets for the three months ended 31 March 2025. The operating segment's growth was further driven by the continued expansion of the Online market and by the Group's increased market share across all segments and brands, reinforcing its leadership position within this segment.

      The overall growth in bets was driven by an increase in:

      • iGaming, from Euro 3,863.7 million for the three months ended 31 March 2024 to Euro 5,794.1 million for the three months ended 31 March 2025;

      • iSports, from Euro 800.9 million for the three months ended 31 March 2024 to Euro 1,123.7 million for the three months ended 31 March 2025;

      • Other online gaming, from Euro 390.3 million for the three months ended 31 March 2024 to Euro

        445.7 million for the three months ended 31 March 2025.

        In addition to the drivers noted above, key contributing factors to growth of the Online segment included:

      • the increase in the online games offer;

      • continuous technological improvements such as graphic and functional refactoring of the deposits and withdrawals section, inclusion of virtual games in the sports betting app, improvement of customer experience on all digital assets;

      • the review / strengthening of the CRM strategy through the implementation of retention/reactivation promotional activities and strengthening of loyalty engagement initiatives implemented by the Group;

      • the optimization of acquisitions from the retail channel through the introduction of focused marketing policies and the improvement of network;

      • the unification of the gaming platform for both Group brands; and

      • joining new gaming networks for poker and skill games.

        Online segment revenues for the three months ended 31 March 2025 amounted to Euro 239.8 million, an increase of Euro 89.4 million compared to Euro 150.4 million for the three months ended 31 March 2024. The main drivers for the increase were the same as the drivers described above for the increase in bet, in addition to favorable sports betting payout recorded in the first quarter of 2025 compared to the same period of the previous year. The PWO acquisition contributed to revenue growth for Euro 55.8 million.

        Sports Franchise

        The following table provides certain key performance indicators for the Sports Franchise segment for the periods indicated:

        As of and for the three months ended 31

        March

        2025 2024

        Number of licenses/concessions*	4,024	3,021
        Number of active points of sale (shops and corner)	3,769	2,850
        Average number of points of sale in operations (shops and corner)	3,758	2,832
        Sports Franchise bet (in millions of Euro)	1,046.3	822.0

        * Excluding the 26 licenses related to horse racing in 2025 and 26 in 2024. Including 8 betting rights of Ricreativo B in 2025 and 2024.

        Sports Franchise bets increased from Euro 822.0 million for the three months ended 31 March 2024 to Euro 1,046.3 million for the three months ended 31 March 2025. The increase was mainly due to the contribution from PWO of Euro 221.4 million as well as the effect of the implementation of the project POS, which enabled the Group to identify and include within its network the best-performing point of sales. Sports Franchise revenues amounted to Euro 150.4 million for the three months ended 31 March 2025 (of which Euro 30.3 million related to PWO), an increase of Euro 56.0 million or 59.4% compared to Euro 94.4 million for the three months ended 31 March 2024. This increase was due to the same factors discussed above to bet, as well as favorable sports betting payout recorded in the first quarter of 2025 compared to the same period of the previous year.

        Gaming Franchise

        Bets in the Gaming Franchise segment for the three months ended 31 March 2025 amounted to Euro 2,769.5 million, a decrease of Euro 87.4 million compared to Euro 2,856.9 million for the three months ended 31 March 2024. Gaming Franchise revenues amounted to Euro 195.5 million11 for the three months ended 31 March 2025, an increase of Euro 0.2 million compared to Euro 195.3 million for the three months ended 31 March 2024.

        The following paragraphs provide details of Gaming Franchise segment by product division:

        ‌11Includes Cristaltec group revenues of Euro 1.2 million, consistent with the approach adopted by management to monitor the results of the operating segments.

        AWP

        The following table provides certain key performance indicators for the AWP product line for the periods indicated:

        As of and for the three months ended 31

        March

        2025 2024

        Number of AWPs in operation as of the period end	63,145	63,633
        Average number of AWPs in operation for the period	63,263	63,400
        AWP bet (in millions of Euro)*	1,045.4	1,123.8
        Average AWP PREU (as percentage of bet)	24.0%	24.0%

        * The amount does not include bets generated by gaming halls connected to other concessionaires (different from Gamenet S.p.A. and Lottomatica Videolot Rete), amounting to Euro 157.8 million, and Euro 122.7 million for the three months ended 31 March 2025 and 2024 respectively, which is included in the Retail and Street Operations business line .

        AWP bets amounted to Euro 1,045.4 million for the three months ended 31 March 2025, a decrease compared to the corresponding period of the previous year (Euro 1,123.8 million for the three months ended 31 March 2024).

        AWP revenues for the three months ended 31 March 2025 amounted to Euro 70.9 million, substantially in line with the same period of previous year (Euro 71.1 million). This trend, which moves against bets performance, was mainly due to the distribution insourcing strategy.

        VLT

        The following table provides certain key performance indicators for the VLT product line for the periods indicated:

        As of and for the three months ended 31

        March

        2025 2024

        Number of VLTs licenses	19,831	19,831
        Average number of VLTs in operation for the period	18,376	18,361
        Number of VLTs in operation as of the period end	18,371	18,416
        VLT in operation as percentage of VLT rights	92.6%	92.9%
        VLT bet in millions of Euro*	1,530.6	1,572.5
        Average VLT PREU (as percentage of bet)	8.6%	8.6%

        * The amount does not include bets generated by gaming halls connected to other concessionaires (different from Gamenet S.p.A. and Lottomatica Videolot Rete), amounting to Euro 35.7 million, and Euro 37.8 million for the three months ended 31 March 2025 and 2024 respectively, which is included in the Retail and Street Operations business line.

        VLT bets decreased by 2.7% from Euro 1,572.5 million for the three months ended 31 March 2024 to Euro 1,530.6 million for the three months ended 31 March 2025 while VLT revenues slightly decreased from Euro 112.3 million for the three months ended 31 March 2024 to Euro 109.3 million for the three months ended 31 March 2025.

        Retail and Street Operations

        Bets in the Retail and Street Operations product line (from other concessionaires) amounted to Euro

        193.5 million for the three months ended 31 March 2025 (Euro 160.6 million for the three months ended

        31 March 2024) while the related revenues (from other concessionaires) amounted to Euro 15.4 million12 for the three months ended 31 March 2025, an increase of Euro 3.5 million compared to Euro 11.9 million for the three months ended 31 March 2024, mainly due to the contribution from the acquisition took place during 2024.

        After reclassifying bets generated in owned gaming halls connected to the Gamenet S.p.A. and Lottomatica Videolot Rete S.p.A. concessionaires, total Retail and Street Operations bets for the three months ended 31 March 2025 amounted to Euro 968.3 million (Euro 888.4 million for the three months ended 31 March 2024). For details regarding movements during the period, see the comments above in relation to AWPs and VLTs.

   2. Other income

      Other income for the three months ended 31 March 2025 amounted to Euro 3.1 million (of which Euro 0.2 million related to PWO), a decrease of Euro 0.8 million compared to Euro 3.9 million for the three months ended 31 March 2024, mainly due to lower NOD recharges compared to the corresponding period of the previous year.

   3. Cost of services

      The following table provides a breakdown of cost of services for the three months ended 31 March 2025 and 2024:

      For the three months ended 31 March Change

      (in thousands of Euro) 2025 % of revenues

      2024 % of

      revenues

      (Euro) %

      Distribution network compensation	(238,790)	(40.9%)	(183,497)	(41.7%)	(55,293)	30.1%
      Fee on licensing gaming platforms	(33,556)	(5.7%)	(24,801)	(5.6%)	(8,755)	35.3%
      Concession fee	(16,001)	(2.7%)	(13,502)	(3.1%)	(2,499)	18.5%
      Rentals, leases and other rentals	(4,051)	(0.7%)	(1,740)	(0.4%)	(2,311)	>100.0%
      Other	(53,236)	(9.1%)	(41,570)	(9.4%)	(11,666)	28.1%
      Total	(345,634)	(59.1%)	(265,110)	(60.2%)	(80,524)	30.4%

      Cost of services for the three months ended 31 March 2025 amounted to Euro 345.6 million (of which Euro 60.9 million related to PWO), an increase of Euro 80.5 million compared to Euro 265.1 million for the three months ended 31 March 2024.

      Cost of services mainly related to the distribution network compensation, which amounted to Euro 238.8 million for the three months ended 31 March 2025 (of which Euro 45.6 million related to PWO), an increase of Euro 55.3 million compared to Euro 183.5 million for the three months ended 31 March 2024. This trend was mainly attributable to the supply chain remuneration model (linked to a percentage of bets and/or revenue sharing mechanisms), resulting in the cost item substantially varying in line with revenues.

      ‌12Includes Cristaltec group revenues of Euro 1.2 million, consistent with the approach adopted by management to monitor the results of the operating segments.

      The fee on gaming platform licenses was Euro 33.6 million for the three months ended 31 March 2025 (of which Euro 5.4 million related to PWO), an increase of Euro 8.8 million compared to Euro 24.8 million for the three months ended 31 March 2024. The item represents fees due to the VLT platform providers to use their systems.

      The concession fee payable to the ADM for the Gaming Franchise, Sports Franchise and Online concessions was Euro 16.0 million for the three months ended 31 March 2025 (of which Euro 2.2 million related to PWO), an increase of Euro 2.5 million compared to Euro 13.5 million for the three months ended 31 March 2024. The increase was substantially related to the PWO acquisition.

      The increase in "Rentals, leases and other rentals" was mainly due to the contribution of PWO for Euro

      1.6 million.

      "Other" amounted to Euro 53.2 million for the three months ended 31 March 2025, an increase of Euro

      11.6 million compared to Euro 41.6 million for the three months ended 31 March 2024. Such change was mainly due to the PWO acquisition for Euro 6.1 million, the higher commissions on collections by credit cards following the increase in the volumes of transactions recorded, as well as higher costs for events at the gaming halls and other marketing campaigns.

   4. Personnel expenses

      The following table provides a breakdown of personnel expenses for the three months ended 31 March 2025 and 2024:

      For the three months ended 31 March Change

      (in thousands of Euro) 2025 % of revenues

      2024 % of

      revenues

      (Euro) %

      Remuneration	(28,423)	(4.9%)	(18,856)	(4.3%)	(9,567)	50.7%
      Social security contributions	(8,867)	(1.5%)	(6,063)	(1.4%)	(2,804)	46.2%
      Other personnel costs	(3,825)	(0.7%)	(1,125)	(0.3%)	(2,700)	>100.0%
      Total	(41,115)	(7.0%)	(26,044)	(5.9%)	(15,071)	57.9%

      Personnel expenses for the three months ended 31 March 2025 amounted to Euro 41.1 million (of which Euro 5.6 million related to PWO), an increase of Euro 15.1 million compared to Euro 26.0 million for the three months ended 31 March 2024. The increase was mainly attributable to the increase in the average number of employees, in particular to the effect of PWO acquisition.

   5. Other operating costs

      Other operating costs for the three months ended 31 March 2025 amounted to Euro 10.9 million (of which Euro 1.1 million related to PWO), an increase of Euro 2.1 million or 23.5% compared to Euro 8.8 million for the three months ended 31 March 2024. The change was mainly due to the PWO acquisition and to the contribution made to the Lottomatica Foundation.

   6. Depreciation, amortization and impairments

      The following table provides a breakdown of depreciation, amortization and impairments for the three months ended 31 March 2025 and 2024:

      For the three months ended 31 March Change

      (in thousands of Euro) 2025 % of

      revenues 2024*

      % of revenues

      (Euro) %

      Amortization of intangible assets	(47,394)	(8.1%)	(37,196)	(8.5%)	(10,198)	27.4%
      of which PPA	(18,424)	(3.2%)	(14,614)	(3.3%)	(3,810)	26.1%
      Depreciation of property, plant and equipment	(12,014)	(2.1%)	(10,153)	(2.3%)	(1,861)	18.3%
      Depreciation of investment property.	(7)	(0.0%)	(7)	(0.0%)	-	0.0%
      Depreciation of right of use	(5,517)	(0.9%)	(4,941)	(1.1%)	(576)	11.7%
      Total	(64,932)	(11.1%)	(52,297)	(11.9%)	(12,635)	24.2%

      * Figures for the three months ended 31 March 2024 have been restated following the completion of the purchase price allocation relating to Ricreativo B S.p.A..

      Depreciation, amortization and impairments for the three months ended 31 March 2025 amounted to Euro

      64.9 million (of which Euro 5.4 million related to PWO), compared to Euro 52.3 million for the corresponding period of the previous year. The increase was mainly due to the contribution of PWO acquisition.

      Amortization of intangible assets for the three months ended 31 March 2025 includes Euro 18.4 million related to amortization of intangible assets recognized during the purchase price allocation (Euro 14.6 million for the three months ended 31 March 2024).

   7. Accruals and impairments

      Accruals and impairments amounted to Euro 9.9 million for the three months ended 31 March 2025, an increase of Euro 9.7 million compared to Euro 0.2 million for the three months ended 31 March 2024, mainly due to the impairment of receivables from the supply chain related to 2015 Italian Stability Law, amounting to Euro 9.5 million.

   8. Net finance expenses

      The following table provides a breakdown of net finance expenses for the three months ended 31 March 2025 and 2024:

      For the three months ended 31 March Change

      (in thousands of Euro) 2025 % of

      revenues 2024

      % of revenues

      (Euro) %

      Non-recurring financial income	-	0.0%	5,031	1.1%	(5,031)	(100.0%)
      Other interest income	670	0.1%	977	0.2%	(307)	(31.4%)
      Total finance income	670	0.1%	6,008	1.3%	(5,338)	(88.8%)
      Non-recurring financial expenses	-	0.0%	(8,355)	(1.9%)	8,355	(100.0%)
      Interest expenses on Notes (including IRS)	(31,286)	(5.4%)	(29,457)	(6.7%)	(1,829)	6.2%
      Amortized cost on Notes	(1,251)	(0.2%)	(2,055)	(0.5%)	804	(39.1%)
      Commission on sureties	(1,634)	(0.3%)	(1,425)	(0.3%)	(209)	14.7%
      Interest expenses on Revolving Loan	(1,491)	(0.3%)	(1,241)	(0.3%)	(250)	20.1%
      Leasing interest expense	(1,094)	(0.2%)	(1,038)	(0.2%)	(56)	5.4%
      Amortized costs on deferred purchase consideration for acquisition	(147)	(0.0%)	(811)	(0.2%)	664	(81.9%)
      Other interest expense	(1,337)	(0.2%)	(909)	(0.2%)	(428)	47.1%
      Total finance expenses	(38,240)	(6.5%)	(45,291)	(10.3%)	7,051	(15.6%)
      Net finance expenses	(37,570)	(6.4%)	(39,283)	(8.9%)	1,713	(4.4%)

      Net finance expenses amounted to Euro 37.6 million (of which Euro 0.6 million related to PWO) for the three months ended 31 March 2025, a decrease of Euro 1.7 million compared to Euro 39.3 million for the same period of the previous year. The change was mainly due to:

      • lower non-recurring finance expenses of Euro 8.4 million mainly attributable to the interest accrued on the December 2023 Notes, prior to the finalization of the SKS365 Acquisition, which occurred in April 2024;

        partially offset by:

      • lower non-recurring finance income of Euro 5.0 million related to interests income accrued on the escrow account in 2024;

      • higher commissions on Notes of Euro 1.8 million.

      It should be noted that "Amortized cost on Notes" and "Amortized cost on deferred purchase consideration for acquisition" are not monetary costs. For further details on the item, see Note 8.8 in the Notes to the Condensed Consolidated Interim Financial Statements.

   9. Income tax expense

      Income tax for the three months ended 31 March 2025 amounted to Euro 26.3 million compared to Euro

      22.3 million for the three months ended 31 March 2024, an increase of Euro 4.0 million. For further details, see Note 8.9 in the Notes to the Condensed Consolidated Interim Financial Statements.

7. Group economic performance - Adjusted EBITDA, Adjusted EBIT and Adjusted Net Profit

   The following table shows the reconciliation of Adjusted EBITDA for the periods indicated:

   For the three months ended 31 March

   (in thousands of Euro) 2025 2024*

   Net profit for the period	51,541	29,866
   Income tax expense	26,269	22,276
   Finance income	(670)	(6,008)
   Finance expenses	38,240	45,291
   Share of profit of equity accounted investments	(205)	-
   Depreciation, amortization and impairment	64,932	52,297
   Adjusted EBITDA from equity accounted investments	936	-
   Cost related to M&A and international activities ** (a)	1,113	1,658
   Integration costs*** (b)	10,565	2,082
   Other non-recurring (income)/expense**** (c)	27,753	2,059
   Total non-recurring not included in Adjusted EBITDA (a+b+c)	39,431	5,799
   Of which:
   - Monetary costs not included in Adjusted EBITDA	29,746	5,630
   - Non-monetary costs not included in the Adjusted EBITDA	9,685	169
   Adjusted EBITDA	220,474	149,521

   * Figures for the three months ended 31 March 2024 have been restated following the completion of the purchase price allocation relating to Ricreativo B S.p.A..

   ** The item mainly refers to advisory costs for the three months ended 31 March 2025, in relation to potential acquisitions.

   *** Primarily represents costs incurred for the integration of acquired companies and expenses on corporate restructuring and redundancy.

   **** For the three months ended 31 March 2025, the item mainly includes one off costs for specific network-related activities in relation to the concession tender and other.

   The following table shows the reconciliation of Adjusted EBIT for the periods indicated:

   For the three months ended 31 March

   (in thousands of Euro) 2025 2024*

   Net profit for the period	51,541	29,866
   Income tax expense	26,269	22,276
   Finance income	(670)	(6,008)
   Finance expenses	38,240	45,291
   Share of profit of equity accounted investments	(205)	-
   Amortization of assets resulting from business combinations	18,424	14,614
   Other non-recurring costs and income excluded from Adjusted EBITDA	39,431	5,799
   Adjusted EBIT	173,030	111,838

   * Figures for the three months ended 31 March 2024 have been restated following the completion of the purchase price allocation relating to Ricreativo B S.p.A..

   The following table shows the reconciliation of Adjusted Net Profit for the periods indicated:

   For the three months ended 31 March

   (in thousands of Euro) 2025 2024*

   Net profit for the period	51,541	29,866
   Amortization of assets resulting from business combinations	18,424	14,614
   Other non-recurring costs and income excluded from Adjusted EBITDA	39,431	5,799
   Adjustments related to SKS365 Acquisition	-	3,324
   Of which:
   - Income from Interest rate swap	-	(1,671)
   - Negative carry (net of accrued interest received from escrow account)	-	4,995
   Other non-monetary items including in financial expenses	2,256	3,679
   Tax effect (IRES + IRAP)**	(16,905)	(7,621)
   Adjusted Net Profit	94,747	49,661
   Adjusted Net Profit per Share***	0.38	0.20

   *Figures for the three months ended 31 March 2024 have been restated following the completion of the purchase price allocation relating to Ricreativo B S.p.A..

   **Tax effect calculation is based on the applicable tax regulations as of the periods illustrated.

   ***Calculated based on outstanding shares as of 31 March 2025.

8. Group economic performance - By operating segment

The following table shows information relating to income statement items by operating segment for the periods indicated.

(in thousands of Euro, except percentages)

Online Sports Franchise Gaming Franchise Total reportable

segment

3M'25 3M'24 3M'25 3M'24 3M'25(a)3M'24 3M'25 3M'24

1. Includes the results of the Cristaltec group, in line with the approach adopted by management to monitor the results of the operating segments.

2. Adjusted EBITDA Margin is calculated as Adjusted EBITDA / Revenues toward third parties.

The following table shows the reconciliation of total revenue for the periods indicated:

For the three months ended 31 March

(in thousands of Euro) 2025 2024