Tag: lottery

The Board of Directors of Lottomatica Group S.p.A. approved the Condensed Consolidated Interim Financial Statements for the nine months at 30 September 2023.

9M 2023 Results

• Bets of €21.7 billion, +19% compared to the same period pro forma1 in 2022 (+34% reported)
• GGR2 of €2,844.1 million, +7% compared to the same period pro forma in 2022 (+10% reported)

o  Total Online market share: at 21.2% in Q3 (+3.8pp versus FY 2022)

o  iSports market share: at 20.4% in Q3 (+3.1pp versus FY 2022)

o  iGaming market share: at 21.7% in Q3 (+4.5pp versus FY 2022)

• Revenues at €1,194.9 million, +12% compared to the same period pro forma in 2022 (+17%

reported)

o Online at €374.0 million, +30% compared to 9M 2022 pro forma (+56% reported)

o Sports Franchise at €277.4 million, +10% compared to 9M 2022

o Gaming Franchise at €543.5 million, +3% compared to 9M 2022

• Adjusted EBITDA3 at €426.4 million, +15% compared to the same period pro forma in 2022 (+25% reported)
• Operating cash flow4 at €344.7 million
• Net financial debt at €1,248.1 million equivalent to 2.2x on LTM run rate Adjusted EBITDA5
• Guidance for fiscal year 2023 confirmed: €1,630 – 1,690 million of revenues, €570 – 590 million6 of Adjusted EBITDA, (c. 50% of Adjusted EBITDA contributed by the Online segment), c. €65 million of recurring capex, c. €45 million of concession capex, c. €30 million of one-off growth capex and c. €35 million of payable for potential deferred consideration.

Guglielmo Angelozzi, Chief Executive Officer of Lottomatica Group, commented: “In this third quarter we have consolidated our leadership position and our Online business has continued to grow market share across all product segments and brands. In the first nine months we reached €426 million of EBITDA, up 15% compared to the same period in 20227. We are on track to achieving our guidance for fiscal year 2023 and to continue to execute our strategy of organic and M&A growth.”

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The Board of Directors of Lottomatica Group S.p.A. approved the Condensed Consolidated Interim Financial Statements for the nine months ended 30 September 2023.

Key consolidated results for 9M 2023

Please note that Betflag has been consolidated on the reported numbers (“rep”) since 1st December 2022. Thus, the first nine months of 2023 results are commented compared to the pro forma (“PF”) amounts for the same period of 2022 as if Betflag acquisition occurred on 1st January 2022.

Bets by segment

In the first nine months of 2023, Lottomatica collected bets for €21.7 billion, +19% compared to the same period pro forma in 2022 (+34% reported). The Online segment continued to outperform with bets up 37% compared to the same period pro forma of 2022 (+83% reported).

Revenues by segment

Revenues amounted to €1,194.9 million in the first nine months of 2023, compared to €1,066.5 million in the same period pro forma of 2022, with +12% increase pro forma (+17% reported). Excluding the impact of the unfavourable payout8, revenues in Q3 were up +11% compared to Q3 2022 pro forma, substantially in line with the growth rate of the first two quarters.

The Online segment totalled €374.0 million revenues in 9M 2023, +30% compared to the same period of 2022 pro forma (+56% reported), with a strong double-digit performance also in the third quarter driven by the market share growth across all product segments and brands. Excluding the impact of the unfavourable payout8, revenues in Q3 were up +40% compared to Q3 2022 pro forma.

The Sports Franchise segment reported €277.4 million in revenues in 9M 2023, up +10% compared to the same period of the previous year. Excluding the impact of the unfavourable payout7, revenues in Q3 were up +8% compared to Q3 2022 pro forma.

The Gaming Franchise segment revenues reached €543.5 million in 9M 2023, +3% compared to the same period of 2022. Revenues in Q3 decreased by -3% compared to Q3 2022, which benefited from the removal of Covid-related restrictions.

Adjusted EBITDA and margin by segment

Adjusted EBITDA reached €426.4 million in the first nine months of 2023, +15% compared to the same period pro forma of 2022 (+25% reported). Adjusted EBITDA margin reached 35.7% on revenues, compared to 34.8% in the same period pro forma of 2022 (33.6% reported) driven by the higher contribution of the Online business.

Excluding the impact of the unfavourable payout7, Adjusted EBITDA in Q3 was up +18% compared to Q3 2022 pro forma, in sequential acceleration compared to the first two quarters.

Operating cash flow

Operating cash flow in the first nine months was €344.7 million, compared to €297.8 million for the same period in 2022, as a result of the increase in Adjusted EBITDA partially offset by concession payments.

Net financial debt

Net financial debt amounted to €1,248 million as of 30 September 2023, equivalent to a net leverage of 2.2x on LTM run rate Adjusted EBITDA9.

***

Management will hold a conference call at 10:00 CET on 31 October 2023 to comment the consolidated results to the market. The event can be followed:

• Via phone: +39 02 802 09 11 or +44 121 281 80 04 or +1 718 705 87 96
• Via  Webcast

The manager in charge of preparing the company’s accounting documents, Laurence Lewis Van Lancker, declares, pursuant to paragraph 2 of Article 154-bis of the Consolidated Finance Act, that the accounting information contained in this press release corresponds to the documented results, books and accounting records.

Society lottery operator The Health Lottery has today announced a revamp of its flagship lottery game, along with the launch of a new website, logo and identity for the overall brand.

Its five-times-a-week lottery game has been renamed The Big Win, and a new prize structure will be in place from tomorrow night’s draw.

The biggest prize change is in the Saturday draw, when the main prize in its free second chance prize draw will be increased to £475,000 from the current level of £250,000. Players who buy a ticket for any Wednesday or Saturday night draw are automatically entered into a free second chance prize draw, which takes place shortly after the first draw.

There will also be some other changes to the draw’s prize structure, with the most significant being that those matching four balls on any draw will receive a prize of £300, up from £250.

“To improve our appeal to players, we’ve increased our Saturday night free prize draw to the highest level possible for a society lottery operator,” said Lebby Eyres, CEO at The Health Lottery. “Players will be able to win a truly life-changing amount from this weekend’s draw. Though the free second chance prize draw jackpot will almost double, tickets to the main draw will still cost £1.”

Eyres added: “We’ve also rebranded to give the draw its own identity. As The Health Lottery’s portfolio of games has expanded beyond the original lottery draw, we decided it was time the main game was differentiated more strongly from our other products.”

In addition to The Big Win, The Health Lottery also offers draw-based games All or Nothing and QuickWin, as well as online instant win games.

Other changes being introduced as part of The Health Lottery’s rebrand include a Mega Monday promotion, where anyone playing QuickWin on Mondays is entered into a £500 raffle, as well as Super Sunday, which offers a £500 raffle for instant win games bought on Sundays.

In addition, direct debit players will automatically be entered into a monthly raffle that will see 10 players win £100 each.

Eyres said this last change was part of a strategy to better reward its regular customers. It has also invited 20,000 online customers to be part of a customer panel, with players receiving free tickets in return for taking part in monthly surveys.

“We want to drive more engagement with our most loyal customers and relate to them better. From August, we will be asking them about different topics each month to obtain feedback on our rebrand, their journeys, instant win games, good causes and so on, with a view to making sure our product is as closely aligned with our players’ preferences as possible.”

Other changes aimed at increasing engagement among players include an overhauled and much-expanded section of the website that features stories of people who’ve benefited from the funds raised via The Health Lottery.

This initiative was driven by Eyres, who joined The Health Lottery at the beginning of the year after more than 20 years as a journalist, 14 of which were spent at publications previously owned by The Health Lottery’s parent company Northern & Shell.

“I want to drive a better emotional connection between players and The Health Lottery by improving our storytelling and making players aware of where the good causes element of their ticket is going.

“Part of the way we are doing this is by breaking down these stories and the associated charities on a regional level to show people what good causes we’ve supported in their local region and how their tickets are making a difference to people who live around the corner,” said Eyres.

The Health Lottery will also invest in a significant marketing campaign to support the rebrand, including above-the-line advertising and leaflet drops.

In addition to appointing Eyres to help drive its planned rebrand, The Health Lottery also named Mark Nash its marketing director in May. Nash was previously head of marketing strategy and planning at general insurer Aviva, and has also held positions at Hiscox and News UK.