Lottomatica Q1 2026 Results Driven by Online Growth
Lottomatica Reports 22% Normalized EBITDA Growth in Q1 2026 – Online Segment Expands Market Share in Italy
Key Takeaways
- Normalized adjusted EBITDA rose 22% year over year to 253 million euros in Q1 2026.
- Online revenue increased 10% on a reported basis and 17% on a normalized basis, with EBITDA margin expanding to 57.5%.
- Online market share reached 31.8%, while iGaming market share rose to 32.2%.
- Net financial debt decreased to 2.051 billion euros, and leverage improved to 2.3 times.
- The company plans to return up to 1 billion euros to shareholders in 2026 and 2027.
First Quarter Results Show Double Digit EBITDA Growth
Lottomatica reported a strong start to 2026, with normalized adjusted EBITDA increasing 22% year over year to 253 million euros in the first quarter. On a reported basis, adjusted EBITDA rose 7% to 236 million euros, compared with 220.5 million euros in the same period a year earlier.
Group revenue reached 602 million euros, up 3% year over year. On a normalized basis, revenue increased 10% to 623 million euros. Gross gaming revenue rose 2% to 1.24 billion euros. Adjusted net profit climbed 12% to 106 million euros.
According to the company, growth in the online gaming division offset weaker performance in sports betting, where unfavorable payout rates weighed on results.
Online Division Drives Revenue and Margin Expansion
The online segment was the strongest performing business unit in the quarter. Reported online revenue increased 10% to 265 million euros, while normalized online revenue grew 17%.
Online adjusted EBITDA rose 18% to 152 million euros. The EBITDA margin in this segment expanded to 57.5%, compared with 53.6% a year earlier. This margin development reflects the higher contribution of online operations to overall profitability.
Lottomatica’s online market share reached 31.8% during the quarter, an increase of 1.4 percentage points year over year. In iGaming specifically, market share rose to 32.2%. Online sports betting market share increased to 32.5%.
The company attributed this momentum to continued strength in its addressable markets and the resilience of online casino gaming.
Sports Franchise Under Pressure Amid Payout Impact
While online operations expanded, the sports franchise division recorded lower revenue and earnings. Revenue in this segment declined 5% to 142 million euros, down from 150.4 million euros a year earlier.
EBITDA in the sports franchise division fell 23% to 35 million euros. The company cited unfavorable payout rates as a key factor affecting sports betting performance in the quarter.
By contrast, the gaming franchise segment remained stable. Revenue in this division was unchanged at 195 million euros. EBITDA edged up 4% to 48 million euros, indicating steady performance despite broader market adjustments.
Impact of Italy’s New Regulatory Framework
Italy’s betting market has been adapting to a new regulatory framework introduced in November 2025. During this transition, online casino gaming has proven more resilient than sports betting.
Lottomatica’s first quarter figures reflect these dynamics. The company recorded gains in online and iGaming market share, while sports betting faced more volatile outcomes linked to payout rates. For users and operators in Italy, the data illustrate how product mix and channel focus can influence financial performance under updated regulatory conditions.
SKS365 Integration and PWO Market Share Recovery
Lottomatica also highlighted progress related to its 640 million euro acquisition of SKS365 in 2024, which was rebranded as PWO. The integration process had previously included platform migration issues that affected market share.
In the first quarter of 2026, PWO’s iGaming market share recovered to 5.5%, up from 5.0% in 2025 when migration challenges had reduced its position. Total sports market share returned to 9.0%, matching pre migration levels.
The recovery indicates that operational adjustments linked to the platform transition have been completed, restoring PWO’s position in both sports and iGaming segments.
Debt Refinancing and Capital Return Plans
During the quarter, Lottomatica refinanced part of its debt through the issuance of 765 million euros in senior secured notes due 2032. The refinancing is expected to reduce annual interest costs by around 5.5 million euros.
Net financial debt decreased to 2.051 billion euros, down from 2.105 billion euros at the end of 2025. Leverage improved to 2.3 times from 2.4 times.
The company reiterated its expectation that full year 2026 adjusted EBITDA will reach the top end of its guidance range of 940 million euros to 980 million euros.
Lottomatica also announced plans to return up to 1 billion euros to shareholders over 2026 and 2027 through dividends and share buybacks. A dividend of 0.44 euros per share has been declared, and a newly approved buyback program has been launched.
Our Assessment
Lottomatica’s first quarter results show that online gaming was the primary driver of earnings growth, with double digit increases in normalized EBITDA and expanded margins in the digital segment. Market share gains in online and iGaming occurred during a period of regulatory adjustment in Italy.
At the same time, sports betting performance was affected by unfavorable payout rates, leading to lower revenue and EBITDA in the sports franchise division. The recovery of PWO’s market share following platform migration and the refinancing of debt contributed to improved leverage and lower expected interest costs. The company maintains its full year EBITDA guidance and has outlined a substantial shareholder return plan for 2026 and 2027.
