Lottomatica Group has reported a significant financial upturn for the nine-month period ending September 30, 2025, largely fueled by its online division and the integration of SKS365. This Italian gaming company’s total revenue soared to €1.64 billion, representing a 16% increase compared to the previous year. The successful acquisition and integration of SKS365, finalized in April 2024 and now operating under the name PWO, played a pivotal role in this growth. The integration process concluded faster than anticipated, enabling Lottomatica to realize cost and technology synergies ahead of schedule, with expectations that two-thirds of the total synergies will be realized by the end of 2025.
Despite the recent success with acquisitions, Guglielmo Angelozzi, Lottomatica’s CEO and chairman, reiterated the company’s commitment to a disciplined mergers and acquisitions (M&A) approach. During an earnings call, he emphasized the importance of ensuring any future deals enhance shareholder value and offer returns surpassing those from a share buyback. “Over the past five years, we have meticulously evaluated 57 potential M&A opportunities,” he noted. “Out of these, we conducted due diligence on 14 and proceeded with only three acquisitions, all based in Italy. Our selective methodology remains our guiding principle.”
These acquisitions include Betflag, acquired in late 2022, Distante S.r.l, in which Lottomatica secured a 65% stake earlier this year, and SKS365 (now PWO). These strategic moves align with Lottomatica’s focus on regulated European markets, B2C operations, and its core sectors of online, sports betting, and gaming.
The standout contributor to Lottomatica’s impressive financial performance was its online operations, generating €688.9 million in revenue — a 27% increase year-on-year, making it the largest revenue contributor. This surge was not solely due to the integration of PWO but was also bolstered by strong performances across all product lines and pre-existing brands. Although betting volumes experienced a temporary dip during Euro 2024, this was effectively counterbalanced by heightened engagement during the FIFA Club World Cup in the second quarter.
Additionally, sports betting revenues climbed by 22% to €381.7 million, supported by favorable payout margins and the full operational contribution from PWO. Meanwhile, the gaming division saw a more modest growth of 2%, resulting in €569.6 million in revenue. Across all business segments, player engagement remained robust, with a total of 32.48 billion bets placed during the period — 21.63 billion online, 8.05 billion from gaming, and 2.81 billion from sports betting.
Operating costs increased in most areas, notably in services, personnel, and other expenditures, though they were partially mitigated by lower financial charges. The group’s pre-tax profit surged by 59.5% from the previous year, reaching €158.4 million. After accounting for taxes of €60.1 million and €5 million in minority interest adjustments, Lottomatica concluded the period with a net profit of €93.3 million, marking a remarkable 102.8% increase from the prior year.
Looking ahead, Angelozzi outlined Lottomatica’s strategic focus on maintaining cash flow efficiency, advancing digital expansion, and adhering to a disciplined capital allocation strategy aimed at maximizing shareholder returns. “We foresee robust growth drivers moving forward, bolstered by favorable market conditions in the online sector, continued enhancements in our cash flow conversion and growth, and a disciplined capital allocation strategy centering on shareholder returns,” he expressed.
With the integration of PWO now complete and synergy targets being achieved ahead of schedule, Lottomatica’s attention is shifting towards sustainable, organic growth. The company remains steadfast in ensuring that any future acquisitions meet stringent criteria for long-term value creation. This approach reflects a broader industry trend where operators are increasingly cautious about M&A activities, prioritizing strategic fit and value over mere expansion.
In contrast to Lottomatica’s strategy, some industry players continue to engage in aggressive acquisitions, chasing rapid expansion and market dominance. While this approach can yield quick gains, it often involves higher risks and potential integration challenges. Lottomatica’s methodical approach, centered on value and sustainable growth, offers an alternative path that, if successful, could set a precedent for others in the sector.
Ultimately, as the igaming industry continues to evolve, companies like Lottomatica that prioritize strategic, value-driven growth over aggressive expansion may find themselves better positioned to navigate the challenges and capitalize on the opportunities that lie ahead. The balance between disciplined investment and capturing market opportunities will be crucial in shaping the future landscape of the industry.
Sarah Thompson is a seasoned writer specializing in casino gaming and online gambling. With over a decade of experience in the industry, Sarah brings in-depth knowledge and a keen eye for detail to her work at CasinoNoDeposits.com. Her expertise lies in uncovering the latest no deposit bonuses and providing comprehensive reviews of online casinos. Passionate about helping players maximize their gaming experience, Sarah combines her analytical skills with a flair for engaging storytelling.
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