This article first appeared on GuruFocus .
Release Date: May 06, 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 ( LTMGF ) reported a double-digit growth in EBITDA on a normalized basis, with revenues up by 7%.
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The company successfully refinanced EUR 765 million, reducing its cost of debt from 5.3% to 4.9%.
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Lottomatica Group SpA ( LTMGF ) has shown strong market performance, particularly in the online segment, with mid-double-digit growth in bets.
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The company has recovered half of the market share lost in iGaming due to migration and has seen a favorable trend in sports franchise.
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Lottomatica Group SpA ( LTMGF ) is confident in reaching the top end of its 2026 guidance, with plans to return up to EUR 1 billion to shareholders through dividends and buybacks.
Negative Points
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The company faced a negative sports payout in the quarter, impacting reported EBITDA growth.
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Tail operators continue to lose market share, particularly in iGaming, which could indicate competitive pressures.
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There is still room for improvement in iSports market share recovery compared to sports franchise.
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The closure of the Serbian branch, while beneficial for cost, indicates restructuring challenges.
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The retail concession tender process remains uncertain, requiring agreement with regions and time for implementation.
Q & A Highlights
Q: Could you expand on EBITDA margins in the quarter, specifically online EBITDA margins? Also, what is driving the online bet growth of 15%, particularly in iSports? A: The online EBITDA margin was 57.5% this quarter, driven by strong volumes and the full impact of synergies realized for PWO. As for bet growth in sports, the comparison between periods with different payouts affects the growth, but we expect the segment to grow around 8% in the mid-term. - Lawrence Vallancar, CFO
Q: Regarding online margins, is the mid-50s level still expected long-term, or should we anticipate higher margins? Why is iSports lagging behind the sports franchise in terms of recovery? A: We expect online margins to remain in the mid-50s, potentially at the higher end. The iSports lag is due to the omnichannel nature of our brands, where demand has shifted more towards retail. However, the profitability impact is minimal as the contribution margin is similar across channels. - Lawrence Vallancar, CFO
Q: What factors led to the decision to update full-year guidance? Is it due to market dynamics, increased market share, or better margins? A: It's a combination of strong volumes, market growth, and cost efficiencies, including the closure of the Serbian branch. These factors have positioned us at the high end of our guidance. - Lawrence Vallancar, CFO
Q: Can you provide insights on the online margin trajectory and volume growth for the rest of the year? Are there any World Cup tailwinds factored in? A: Q1 and Q4 are typically the strongest quarters, with Q2 and Q3 being weaker. We expect an 8% mid-term growth for the sports segment, with some World Cup tailwinds included in our projections. - Lawrence Vallancar, CFO
Q: Regarding the gaming franchise EBITDA margins, what are the drivers for this year, and any updates on the retail concession tender? A: The gaming franchise margins are driven by distribution and sourcing improvements and timing of costs. We expect margins between 23% and 24%. As for the retail concession, the framework is solid, but approval and implementation will take time. - Gugielmo Angelozzi, CEO
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
