This article first appeared on GuruFocus .
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EBITDA Growth:14% reported, 17% normalized for Q2; 10% reported, 20% normalized for H1.
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Online EBITDA Growth:21% reported for H1; 24% for Q2, 25% normalized.
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EBITDA Margin:Increased from 37% to 39% at group level; online profitability increased from 54% to 58%.
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Revenue Growth:5% in H1, 6% in Q2 reported, 8% normalized.
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Online Revenue Growth:17% normalized.
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Sports Franchise Revenue Growth:9% normalized.
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Adjusted EBITDA Growth:Online 27% normalized; Sports Franchise 18% normalized.
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CapEx:EUR 80 million, approximately 7% of total revenues.
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Operating Cash Flow Growth:12%.
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Net Financial Debt:EUR 2.11 billion.
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Net Financial Leverage:2.3 turns.
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Share Buybacks:EUR 58 million.
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Dividends Paid:EUR 101 million.
Release Date: July 28, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Lottomatica Group SpA ( LOTMY ) reported a 14% increase in EBITDA for Q2 2026 on a reported basis, and a 17% increase on a normalized basis.
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The company's online segment showed strong growth, with a 21% increase in the semester at a reported level and 25% at the normalized level.
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EBITDA margins increased by two percentage points at the group level, driven by online profitability improvements.
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Lottomatica Group SpA ( LOTMY ) has consistently grown its market share in iSports, iGaming, and overall online segments.
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The company has maintained a strong focus on profitable growth, optimizing promotional strategies and customer acquisition efforts.
Negative Points
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The sports segment faced challenges in Q1 due to payout issues, impacting overall performance.
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Despite strong growth, the gaming franchise remained broadly flat in terms of adjusted EBITDA.
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The company had to stop its share buyback program temporarily due to regulatory approvals, affecting capital return execution.
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There is uncertainty regarding the retail concession framework, with potential delays in agreements and cash outflows.
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The company faces competitive intensity in the market, particularly during major events like the World Cup, which can impact market share dynamics.
Q & A Highlights
Q: Can you discuss the impact of the World Cup on your business, particularly in terms of acquisition, player engagement, and business mix? A: Laurence Van Lancker, Deputy CEO and CFO, stated that the World Cup's impact was in line with expectations and factored into the full-year guidance. It didn't significantly affect EBITDA, and the promotional strategy focused on profitable growth.
Q: Regarding online EBITDA margins, should we consider the current levels as the new normal, or could they fluctuate? A: Laurence Van Lancker explained that while margins have improved faster than anticipated, they may fluctuate due to payout volatility. However, the current cost structure is sustainable in the medium term.
Q: What are the key drivers for further improvement in online margins, and is there an update on the retail concession framework? A: Laurence Van Lancker mentioned that while there is potential for further cost efficiencies, they are not currently baked into guidance. Guglielmo Angelozzi, CEO, noted that the retail concession framework's timing won't impact the next two to three years significantly.
Q: Can you comment on current trading trends and market share opportunities in online gaming? A: Laurence Van Lancker stated that trading trends remain solid, and the market share opportunities remain consistent with past views. The focus is on profitable growth.
Q: How do you view the digital market share of Paywinds operators, and is it more challenging to gain market share from them? A: Guglielmo Angelozzi emphasized that the focus is on acquiring quality market share at a sustainable cost, rather than the strength of competitors. The quality of the counterpart and customer base is crucial.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
