Lottomatica, the Italian-facing gaming operator, reported a significant rise in revenue for the first nine months of 2025, reaching €1.64 billion. This 16% increase from the previous year highlights the impact of strategic mergers and acquisitions, notably the acquisition of SKS365, now known as PWO, completed in April 2024.
The integration of SKS365 into Lottomatica’s operations has exceeded expectations, with synergies anticipated to be realized sooner than planned. Remarkably, two-thirds of these efficiencies are projected to be achieved within this year, with PWO now fully integrated into the group’s proprietary platform.
Despite these successes, Lottomatica’s chairman and CEO, Guglielmo Angelozzi, emphasized the company’s commitment to a disciplined and selective M&A strategy. In an earnings call, Angelozzi reiterated that while Lottomatica identified 57 potential acquisition targets over the past five years, it proceeded with only three deals. These include the acquisitions of SKS365, Betflag in late 2022, and a 65% stake in Distante S.r.l earlier in 2025, all within the Italian market.
Angelozzi stressed the importance of value creation and shareholder returns as cornerstones of their strategy, stating that share buybacks remain the primary benchmark for shareholder return. He noted, “We are going to keep our disciplined approach, measured on value creation and benchmarked against share buybacks.” This reflects a consistent position held throughout the year, as the CEO had previously mentioned “interesting opportunities” without ruling out future M&A activities.
The nine-month period also saw Lottomatica’s online segment become its primary revenue driver, with a 27% increase in online revenue to €688.9 million. This surge was supported not only by PWO’s contribution but also by growth across other product segments and legacy brands. While Euro 2024 presented some challenges, these were partially offset by the FIFA World Club Cup in Q2 2025, aiding the upward trend in online revenues.
Sports betting emerged as another key growth area, with a 22% rise in revenue to €381.7 million. The acquisition of PWO proved advantageous here as well, bolstering overall sports betting revenue. Lottomatica also benefited from an overall favorable sports betting payout during this period.
The gaming segment, though growing, saw a modest increase of 2% to €569.6 million. This placed it between the more robust online and sports betting segments in terms of revenue contribution. Player activity was robust, with 32.48 billion bets placed during the nine months, including 21.63 billion online, 8.05 billion in gaming activities, and 2.81 billion sports bets.
On the financial front, Lottomatica’s net profit more than doubled year-on-year. Pre-tax profit for the nine-month period rose by 59.5% to €158.4 million, despite higher spending across most areas, including €962.6 million in service costs. Some savings were achieved in financial expenses. After accounting for €60.1 million in taxes and €5.0 million in non-controlling interests, the operator’s net profit stood at €93.3 million, marking a 102.8% increase from the previous year.
The outlook remains optimistic, with Angelozzi expressing confidence in ongoing growth drivers. The company anticipates continued market tailwinds in the online sector, improvements in cash flow conversion, and a disciplined approach to capital allocation, all aimed at enhancing shareholder returns.
However, an alternative view within the industry suggests that Lottomatica’s cautious approach may limit its aggressive expansion capabilities. Critics argue that while a disciplined M&A strategy safeguards against potential pitfalls, it may also prevent the operator from seizing lucrative opportunities in rapidly evolving markets. The balance between maintaining stability and pursuing growth remains a delicate one for Lottomatica.
In conclusion, Lottomatica’s strategic maneuvers and disciplined approach to acquisitions have driven notable financial gains for the group, reinforcing its position in the market. As the company continues to navigate the complex landscape of the gaming industry, its commitment to value creation and shareholder returns remains steadfast, ensuring future resilience and success.
4.2/5
