Lottomatica Group reports strong growth for FY 2023

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The Board of Directors of Lottomatica Group S.p.A. reviewed and approved the draft of the Consolidated Financial Statements, the Consolidated non-financial report and the draft of the Financial Statements of the parent company for the year ended 31 December 2023.

FY 2023 Results summary2

● Bets of €30.1 billion, +18% compared to FY 2022 pro forma3 (+32% reported)

● GGR4 of €3,864.2 million, +6% compared to FY 2022 pro forma (+9% reported)

o Total Online market share: at 21.7% in Q4 (+3.7pp versus Q4 2022)

o iSports market share: at 22.1% in Q4 (+4.2pp versus Q4 2022)

o iGaming market share: at 21.5% in Q4 (+3.7pp versus Q4 2022)

● Revenues of €1,632.5 million, +12% compared to FY 2022 pro forma (+17% reported)

o Online of €520.8 million, +33% compared to FY 2022 pro forma (+58% reported)

o Sports Franchise of €368.2 million, +8% compared to FY 2022

o Gaming Franchise of €743.5 million, +2% compared to FY 2022

● Adjusted EBITDA5 of €595.7 million at normalised1 payout above €550 – €570m of IPO guidance and €570 – 590 million of upgraded guidance in July (€580.4 million actual, +17% compared to FY 2022 pro forma)

● Operating cash flow6 of €469.6 million

● Adjusted Net Profit7 of €215.9 million, +29% compared to FY 2022 pro forma

● Net financial debt of €1,248.7 million equivalent to 2.1x on run rate Adjusted EBITDA8

● Dividend payment proposal: €0.26 per ordinary share

● FY 2024 Guidance (excluding SKS365 and related synergies): €1,800-1,8451 million of revenues, €625-6451 million of Adjusted EBITDA (c. 53% of Adjusted EBITDA contributed by the Online segment), c. €70-75 million of recurring capex, c. €60 million of retail concession capex, and c. €16m of online concession capex, c. €30-50 million of special growth initiatives and c. €89 million of deferred consideration. An updated guidance will be provided after the closing of the SKS365 acquisition, which is expected to occur during the first half of 2024.

Guglielmo Angelozzi, Chief Executive Officer of Lottomatica Group, commented: “2023 marked a very strong year for our group, in which we consolidated our leadership position across all segments and brands. We exceeded expectations set at IPO and subsequent upgrades, with revenues of €1,632 million and Adjusted EBITDA of €596 million at normalised payout (€580 million actual). We continued to grow both organically, increasing market share for the fifth quarter in a row, and through M&A, signing the acquisition of SKS365 and executing our bolt-on strategy.

Our objectives for 2024 are to strengthen our leadership position in both the Online and Sports Franchise segments through product and technology innovation, further develop the omnichannel model while managing efficiently our portfolio of brands and focus on the integration of SKS365.

I wish to thank all the Lottomatica people for their commitment in the achievement of these amazing results, our Board members for their continued support and our investors for their trust.”