Lottomatica reports €236m EBITDA as online betting growth accelerates

Italian gaming operator Lottomatica reported a solid financial performance for the first quarter of 2026, supported primarily by continued expansion in its online business. The company generated total bets of €12.4 billion during the period, reflecting an 11% increase compared to the same quarter in 2025.

This growth was largely attributed to a significant rise in online betting activity, which increased by 15% year-on-year. The trend highlights the ongoing structural shift within the gambling sector, where digital channels are steadily outperforming traditional retail formats.

Revenue for the quarter reached €602.3 million, marking a 3% increase on a reported basis. However, when adjusted for normalized sports betting payout conditions, revenue growth stood at a more robust 10%. This distinction underscores the impact that payout fluctuations can have on short-term financial results, particularly in sports betting operations.

Online revenue contributed significantly to overall performance, climbing 10% to €264.7 million. When normalized, the growth rate for the online segment reached 17%, further reinforcing its role as the primary engine of expansion for the group.

Online segment strengthens market leadership

Lottomatica’s leadership position within Italy’s online gambling market continued to strengthen during the quarter. The company reported a total online market share of 31.8%, while its iGaming segment reached 32.2%. These figures represent incremental gains and reflect the operator’s ability to capture demand across multiple product verticals, including sports betting, casino games and digital entertainment offerings.

Management indicated that growth in the online segment was driven by a combination of favorable market dynamics and internal execution. These included improved product offerings, enhanced user experience and targeted marketing strategies across its portfolio of brands.

The broader Italian online gambling market has shown resilience and steady expansion, providing a supportive backdrop for operators with strong digital capabilities. Lottomatica appears to have capitalized effectively on these conditions, consolidating its position as a leading player in the sector.

Adjusted EBITDA shows solid growth trajectory

Lottomatica reported adjusted EBITDA of €235.5 million for the first quarter, representing a 7% increase compared to the same period last year. On a normalized basis, adjusted EBITDA rose by 22% to €252.7 million, reflecting improved operational efficiency and favorable business mix.

The EBITDA margin improved from 37.6% to 39.1%, indicating enhanced profitability across the group’s operations. This margin expansion suggests that the company has been able to scale its business effectively while maintaining cost discipline.

The online division delivered the strongest contribution to profitability. Segment EBITDA increased 18% year-on-year to €152.2 million, with normalized growth reaching 29%. This performance underscores the higher margin characteristics typically associated with digital operations compared to retail-based activities.

Adjusted net profit for the quarter reached €106.4 million, up from €94.7 million in the prior-year period. The increase reflects both revenue growth and improved cost management, as well as the positive contribution from high-margin online activities.

Recovery of PWO brand market share

Lottomatica also provided an update on the performance of its PWO brand, which experienced challenges during a migration process in 2025. According to the company, the recovery of market share is progressing steadily.

The PWO brand’s total sports betting market share returned to pre-migration levels of 9.0% during the first quarter of 2026. In the iGaming segment, market share improved to 5.5%, indicating a gradual rebuilding of customer engagement and activity.

The company stated that approximately half of the market share lost during the migration period has now been recovered. This development is likely to be viewed positively by investors, as it suggests that the operational issues encountered previously have been largely addressed.

The recovery also reflects the importance of platform stability and seamless customer experience in the competitive online gambling market. Any disruption in these areas can lead to immediate shifts in user behavior, making effective recovery strategies critical.

Refinancing strategy reduces cost of debt

In April 2026, Lottomatica completed a refinancing transaction involving €765 million in senior secured notes due 2032. The proceeds are intended to refinance €400 million in floating-rate senior secured notes due 2031 and to support general corporate purposes.

These purposes may include potential acquisitions, strategic investments or share buyback initiatives. The refinancing has had a positive impact on the company’s cost of capital, with the average pre-tax cost of debt declining from 5.3% to 4.9%.

As of the end of March 2026, Lottomatica reported net financial debt of €2.05 billion. This corresponds to a leverage ratio of 2.3 times adjusted EBITDA, a level that suggests a balanced approach to capital structure management.

The reduction in borrowing costs is expected to enhance financial flexibility and support the company’s long-term growth strategy, particularly in a competitive and evolving market environment.

Shareholder returns and buyback programme

Lottomatica confirmed that a new share buyback programme will commence on 7 May 2026, following shareholder approval obtained in April. The programme authorizes the company to repurchase up to 12.5% of its outstanding share capital over an 18-month period.

The maximum potential outflow for the buyback programme is estimated at approximately €700 million. In addition, the company indicated that up to €1 billion could be returned to shareholders during 2026 and 2027 through a combination of dividends and share repurchases.

As part of its capital return strategy, Lottomatica also confirmed a dividend payment of €0.44 per share. This represents a total distribution of approximately €111 million.

These initiatives reflect the company’s commitment to delivering value to shareholders while maintaining sufficient resources to pursue growth opportunities.

Positive outlook for full-year 2026

Commenting on the results, CEO Guglielmo Angelozzi said:

“In the first quarter of 2026 we continued to see strong momentum of our addressable markets, supporting a double-digit growth YoY in Adj. EBITDA of +22%, on a normalised basis. PWO continues to perform well having fully recovered its market share in total Sports compared to pre-migration levels and with a good progression in iGaming. We also successfully carried out the refinancing of our FRNs due 2031, lowering our average pre-tax cost of debt to 4.9%.”

He added:

“With a positive outlook for FY 2026, we expect to close the FY 2026 Adj. EBITDA at the top end of the guidance and to return up to Euro 1 billion to shareholders in 2026 and 2027, starting this week with the launch of the newly approved buyback programme.”

Conclusion

Lottomatica’s first-quarter performance for 2026 illustrates a company that is effectively navigating the evolving dynamics of the gambling industry. The continued strength of its online segment, combined with disciplined financial management and strategic capital allocation, has positioned the group for sustained growth.

The recovery of the PWO brand and the successful refinancing of debt obligations further reinforce the company’s operational resilience. At the same time, its commitment to returning capital to shareholders reflects confidence in both its current financial position and future prospects.

Looking ahead, the outlook for full-year 2026 appears positive, with management targeting results at the upper end of guidance. While market conditions and regulatory developments remain important factors to monitor, Lottomatica’s current trajectory suggests that it is well placed to maintain its leadership in the Italian market and continue delivering value across its stakeholder base.

FAQs

What was Lottomatica’s EBITDA in Q1 2026?
Lottomatica reported adjusted EBITDA of €235.5 million for the first quarter of 2026.

How much did online betting grow during the quarter?
Online betting activity increased by 15% compared to the same period in 2025.

What total bets did the company record in Q1 2026?
The company generated €12.4 billion in total bets during the quarter.

How did the online segment perform financially?
Online revenue reached €264.7 million with normalized growth of 17%.

What is Lottomatica’s market share in iGaming?
The company reported an iGaming market share of 32.2%.

Did the company improve its profitability margins?
Yes, EBITDA margin increased from 37.6% to 39.1%.

What is the status of the PWO brand recovery?
The PWO brand has recovered its sports betting market share to pre-migration levels.

How did refinancing impact the company?
Refinancing reduced the average pre-tax cost of debt to 4.9%.

What shareholder returns has Lottomatica announced?
The company announced a buyback programme and a dividend of €0.44 per share.

What is the outlook for full-year 2026?
Lottomatica expects to achieve EBITDA at the top end of its guidance range.