Lottomatica reports record online share and higher nine-month earnings

Lottomatica has strengthened its position in Italy's gambling market after reporting record online market share and higher financial results for the first nine months of 2026. The group's latest performance highlights the increasing contribution of its digital operations, with online betting and gaming continuing to support revenue growth despite more challenging conditions across parts of its retail business.

For the period ending 30 September 2026, Lottomatica recorded €1.72 billion in revenue, representing an increase of 5% compared with the corresponding period in 2025. The company also reported improved profitability and operating cash flow, while maintaining its expectations for the full financial year.

The results arrive as the Italian operator advances preparations for its proposed combination with Spanish gaming group CIRSA. The transaction represents an important strategic development for both businesses and could significantly expand their international presence.

Lottomatica strengthens its online market position

The most notable development in Lottomatica's third-quarter performance was its continued expansion in the Italian online gambling market. The company's online market share reached a record 32.4% in September 2026, according to its reported market performance.

Across the third quarter, the group's average online market share stood at 31.7%, representing an improvement of 0.9 percentage points compared with the same period last year.

Both major digital activities contributed to this development. Lottomatica's iSports market share reached 34.8% during the quarter, increasing by 2.1 percentage points year-on-year. Its iGaming market share also advanced to 31.2%, an improvement of 0.6 percentage points.

These figures demonstrate the growing importance of digital distribution to the company's overall business model. Online sports betting and gaming have become significant contributors to the group's financial performance as customer activity increasingly moves towards digital channels.

Lottomatica recorded total betting volumes of €35.2 billion during the first nine months of 2026. This represented an 8% increase compared with the €32.5 billion recorded in the corresponding period of 2025.

Online betting volumes increased by 12%, while activity across the sports franchise division grew by 11%. The company also reported gross gaming revenue of approximately €3.52 billion, up 2% year-on-year.

Revenue and adjusted EBITDA continue to increase

Lottomatica's financial results reflected the contribution of its expanding digital business. Total reported group revenue reached €1.718 billion, compared with €1.640 billion during the first nine months of 2025.

Adjusted EBITDA increased by 8% to approximately €665.5 million. When calculated using normalised sports betting payout assumptions, adjusted EBITDA reached €715.1 million, representing annual growth of 19%.

The distinction between reported and normalised performance is relevant because sports betting payouts can influence revenue and profitability during individual reporting periods. Lottomatica indicated that less favourable payout conditions affected some of its reported results.

Operating cash flow also improved, reaching €544.9 million compared with approximately €504 million a year earlier. This development provided further evidence of the group's ability to generate cash while continuing to invest in its business operations.

Net financial debt stood at approximately €2.16 billion at the end of September 2026. The company reported net leverage of 2.4 times its last-twelve-month run-rate adjusted EBITDA.

The figures indicate that Lottomatica maintained financial growth while retaining a substantial debt position. Its cash generation and profitability will remain relevant as the group progresses towards the proposed CIRSA combination.

Online operations lead divisional performance

The online division remained Lottomatica's strongest contributor to revenue growth during the reporting period.

Revenue from online activities increased by 13% to €780.8 million compared with the first nine months of 2025. On a normalised payout basis, the increase was 18%.

The performance reflected growth across the online market and improvements in market share across the group's products and brands. However, the company also noted that less favourable sports betting payouts partially offset the benefits of increased activity.

The sports franchise division recorded revenue of €376.7 million, representing a decline of 1% year-on-year. This result came despite an 11% increase in betting volumes.

The difference between betting activity and reported revenue illustrates how sports betting payouts can influence financial performance. Higher betting volumes do not necessarily translate into equivalent revenue growth when customer winnings increase.

Meanwhile, the gaming franchise division generated €560.3 million in revenue, down 2% compared with the previous year.

Although these divisions experienced different operating conditions, the group's overall revenue and adjusted EBITDA continued to advance. Online operations therefore remained central to Lottomatica's growth during the period.

Proposed CIRSA merger moves towards shareholder approval

Alongside its financial performance, Lottomatica is progressing with its proposed combination with CIRSA Enterprises.

First announced on 2 September 2026, the transaction is structured as a cross-border merger by absorption, under which CIRSA would be absorbed into Lottomatica. The Italian company would remain the surviving legal entity.

Both companies' boards approved the common merger plan on 8 October 2026, establishing the formal framework for the proposed transaction.

The combination is intended to create a substantially larger international gaming and sports betting group, bringing together Lottomatica's position in Italy with CIRSA's established operations in Spain and other international markets.

The companies have scheduled shareholder meetings as part of the approval process. Lottomatica's extraordinary and ordinary shareholders' meeting is scheduled for 23 November 2026, while CIRSA's extraordinary general meeting is scheduled for 30 November.

Subject to shareholder approval, regulatory clearances and other applicable legal requirements, completion is currently expected during the second quarter of 2027.

Management has also indicated that integration preparations are progressing. The companies' integration workstreams are “already fully up and running” with the intention of being “100 per cent ready” to begin implementing the integration plan immediately after the transaction becomes effective.

The preparations cover several areas of the proposed combination, including operational coordination and the development of the combined group's online business.

CIRSA reports stronger nine-month financial results

CIRSA's latest financial performance provides additional context for the proposed combination.

In its third-quarter 2026 results, published on 4 November, the Spanish gaming group reported net operating revenue of €1.888 billion for the first nine months of the year. This represented an increase of 10% compared with the corresponding period in 2025.

Adjusted EBITDA reached approximately €599.3 million, increasing by 9.3% year-on-year. The company also reported net profit of €128.3 million, representing growth of approximately 73.6%.

Profit before income tax increased to approximately €178.8 million from €130.4 million in the previous year's comparable period. The improvement reflected stronger operating performance alongside lower financial expenses.

Spain remained a significant contributor to CIRSA's business. The country accounted for approximately 48.4% of group EBITDA during the first nine months of 2026.

The Spanish slots division recorded net operating revenue growth of 10.5%. Its EBITDA increased by 15.6% to approximately €186.4 million.

The wider casino division generated net operating revenue of approximately €805.7 million and EBITDA of €326.9 million. Its performance was achieved despite temporary casino closures in Colombia following an earthquake in August.

CIRSA's online gaming and betting operations also recorded revenue growth. Net operating revenue in this division increased by 14.3% year-on-year. However, its EBITDA declined by 4.9%, reflecting the impact of higher gaming taxes in Peru and less favourable sports betting results during parts of the reporting period.

The results illustrate the different commercial conditions affecting CIRSA's geographical markets and business segments.

Both companies maintain their full-year expectations

Lottomatica and CIRSA have both reaffirmed their respective financial expectations for 2026.

Lottomatica expects its adjusted EBITDA, calculated on a normalised payout basis, to finish towards the upper end of its existing guidance range.

This position reflects continued strength in online betting and gaming, improving market share and the group's ability to generate operating cash flow.

CIRSA has also maintained its full-year outlook, expecting revenue and adjusted EBITDA growth towards the upper end of its previously communicated guidance.

The companies' outlooks provide an indication of management confidence, although their final performance will depend on operating conditions during the remaining months of the financial year.

Conclusion

Lottomatica's first nine months of 2026 demonstrate how its expanding online business is influencing the group's financial performance and competitive position in Italy. Reaching a record 32.4% online market share in September, alongside revenue growth and higher adjusted EBITDA, represents an important development for the company.

The latest results also highlight the differences between digital and retail operations. While online activities continued to expand, some traditional business segments experienced revenue pressure from sports betting payouts and other operating conditions.

CIRSA's performance adds another important dimension to the group's longer-term strategy. Its established Spanish operations, international casino portfolio and growing online activities could provide Lottomatica with greater geographical diversification and additional opportunities for development.

However, the proposed combination remains subject to shareholder decisions, regulatory approvals and the completion of the necessary legal procedures. Integration will also require careful coordination to ensure that the operational and financial objectives of the transaction can be pursued effectively.

For Lottomatica, the immediate priority is to sustain its growth momentum while preparing for the next stage of its corporate development. Its record online market share and improving financial results provide a strong foundation, but the successful execution of its merger strategy will be an equally important factor in determining its future position in the international gaming industry.

FAQs

How much revenue did Lottomatica generate in the first nine months of 2026?
Lottomatica reported approximately €1.72 billion in revenue for the first nine months of 2026, representing a 5% increase compared with the same period in 2025.

What was Lottomatica's record online market share in September 2026?
The company's Italian online market share reached a record 32.4% in September 2026. Its average market share for the third quarter was 31.7%.

How much did Lottomatica's adjusted EBITDA increase?
Adjusted EBITDA reached approximately €665.5 million, representing an 8% increase year-on-year. On a normalised payout basis, the figure increased by 19% to €715.1 million.

Which Lottomatica division generated the most revenue growth?
The online division was the strongest growth contributor. Its revenue increased by 13% to approximately €780.8 million during the first nine months of 2026.

How much did Lottomatica collect in betting volumes?
The company recorded total betting volumes of approximately €35.2 billion during the first nine months of 2026, an 8% increase compared with the previous year.

What is the proposed Lottomatica and CIRSA merger?
The proposed transaction is a cross-border merger by absorption under which CIRSA would become part of Lottomatica, with the Italian company remaining the surviving legal entity.

When is the Lottomatica and CIRSA merger expected to close?
The companies currently expect the merger to become effective during the second quarter of 2027, subject to shareholder approvals, regulatory clearances and other legal requirements.

How much revenue did CIRSA report in the first nine months of 2026?
CIRSA reported approximately €1.888 billion in net operating revenue for the first nine months of 2026, representing an annual increase of 10%.

What was CIRSA's adjusted EBITDA during the reporting period?
CIRSA generated approximately €599.3 million in adjusted EBITDA, an increase of 9.3% compared with the corresponding period in 2025.

Have Lottomatica and CIRSA maintained their 2026 financial guidance?
Yes. Both companies reaffirmed their respective full-year expectations and indicated that they expect to finish 2026 towards the upper end of their previously communicated guidance.