Lottomatica H1 revenue climbs 5% to €1.18bn as online offsets retail weakness

Lottomatica posted a 5% year-on-year increase in first-half revenue to €1.18bn ($1.34bn), driven by sustained online expansion that compensated for softer performance in its retail-oriented franchises.

Total bets placed during the six months to 30 June rose 9% to €23.68bn, while gross gaming revenue edged up 2% to €2.41bn. Adjusted EBITDA advanced 10% to €465.3m, pushing the corresponding margin from 37.4% to 39.4%. Statutory net profit more than doubled to €116m (from €68.2m in H1 2025), and adjusted net profit reached €196.5m.

Online segment drives growth

Digital operations remained the primary engine of improvement. Online segment revenue expanded 13% to €525.1m, supported by a 12% rise in bets and market-share gains in both sports betting and iGaming. Online adjusted EBITDA jumped 21% to €303.9m, with its margin widening from 54.1% to 57.9%. Although the online segment contributed less than half of group revenue, it accounted for roughly two-thirds of the group’s total adjusted EBITDA.

Lottomatica’s aggregate online market share stood at 31.6% during the second quarter. Within that, its online sports betting share was 31.8% and iGaming matched the overall figure at 31.6%.

Market restructuring and competition

The strong digital performance comes against the backdrop of a regulatory overhaul in Italy. A new concession regime has introduced higher licence fees, stricter technical standards, and limits on the number of domains per concession — changes widely expected to favour larger operators capable of absorbing increased compliance, technology, and customer-acquisition costs.

Competitive intensity has also risen since Flutter Entertainment’s €2.3bn acquisition of Snaitech in April 2025, which united Snai with Flutter’s existing Sisal and PokerStars operations in the Italian market.

Franchise results and financial position

In contrast, the Sports Franchise division saw revenue slip 1% to €275.4m, reflecting less favourable betting payouts (though on a normalised basis revenue would have risen 9%). The Gaming Franchise segment recorded a 2% decline to €380m.

Operating cash flow improved to €385.5m, while net financial debt remained broadly stable at €2.11bn. Net leverage edged down from 2.4x at end‑2025 to 2.3x.

Lottomatica reaffirmed its full‑year outlook, stating that 2026 adjusted EBITDA is expected to finish at the top end of its guidance range. In May, the operator reported Q1 revenue of €602.3m, a 15% increase in online bets, and approved a share buyback programme covering up to 12.5% of its share capital.