The board of directors of Lottomatica Group has approved the condensed interim consolidated financial statements for the six months ended June 30, 2023.

In the first six months of 2023, Lottomatica Group’s funding amounted to Euro 14.6 billion, +20 % compared to the same period of 2022 pro forma (+34% reported). The Online operating segment was the one with the greatest growth with +36% compared to the same period of 2022 pro forma (+78% reported).

Revenues amounted to Euro 820.1 million in the first six months of 2023, compared to Euro 712.3 million in the same period of 2022 pro forma, with an increase of 15% pro forma (+20% reported).

The Online operating segment achieved revenues of Euro 246.9 million, +27% compared to the same period of 2022 pro forma (+51% reported), with a sequential acceleration in the second quarter, driven
from increased market share across all segments and brands, including Better and Lottomatica.it, which were migrated to Group systems from Q3 2022 and now contribute to the Group’s strong performance. Furthermore, the performance of the Online operating segment was supported by: the increase in the offer of online games, the continuous improvement of technology (e.g. the inclusion of virtual games in the sports betting app), the enhancement of CRM and omnichannel to increase the retention, reactivation and acquisition of new customers from the retail channel.

The Sports Franchise operating segment recorded an 18% increase in revenues in the first six months of 2023 compared to the same period of the previous year, with revenues of Euro 204.9 million, mainly driven by market growth, despite the expansion of the online segment, and the rationalization of the network in view of the implementation of the “Project POS”8.

The revenues of the Gaming Franchise operating segment amounted to Euro 368.2 million in the first half of 2023, recording +7% compared to the same period of 2022, with VLTs driving growth also in the second quarter, despite a dense base for comparison since the lifting of the Covid-related restrictions took place in the second quarter of 2022.

Adjusted EBITDA stood at Euro 298.8 million in the first six months of 2023, an increase of 19% compared to the same period of 2022 pro forma (+28% reported). The Adjusted EBITDA margin on revenues stood at 36.4%, compared to 35.4% in the same period of 2022 pro forma (34.2% reported), mainly driven by the greater contribution of the Online business.

Operating cash flow in the first six months of 2023 amounted to Euro 256.9 million, compared to Euro 205.6 million in the same period of 2022, due to the increase in Adjusted EBITDA partially offset by payments relating to concessions.

Pro forma net financial debt at June 30, 2023 amounted to Euro 1,216 million, following the refinancing of Euro 1,115 million of the bonds maturing in 2025 through the issue of a new bond, of which Euro 550 million at a floating rate ( with a 3-month EURIBOR coupon + 4.125%) and Euro 565 million at a fixed rate (with a 7.125% coupon), both with maturity 2028. The pro forma leverage calculated on an LTM run rate Adjusted Ebitda basis decreased to 2.2x as at 30 June 2023 from 2.4x as at 31 March 2023.