Lottomatica targets the top end of 2026 predictions after strong Q1
The board of directors of Lottomatica met on the 5th of May and approved the Condensed Consolidated Interim Financial Statements as of and for the three months ended 31 March 2026. The group opened 2026 with continued growth, showing a recovery at PWO, Lottomatica’s Planetwin business acquired through SKS365, after its migration to the group’s proprietary technology platform.
The Italian gaming operator reported €12.4 billion in bets in Q1 2026, representing an 11 per cent increase from the previous year. Revenue went up to €602.3 million, and adjusted EBITDA climbed to €235.5 million.
Online bets rise 15%
The company’s growth was supported by a significant rise in online betting activity. Online bets rose 15 per cent, confirming the shift towards digital channels in the country’s gaming market.
Gross gaming revenue increased as well, reaching €1.25 billion, up by 2 per cent compared with the same period in 2025. Revenue grew quite fast, rising 3 per cent to €602.3 million. This shows how the company can convert higher betting volumes into stronger top-line performance.
These figures reveal a solid quarter for the Italian operator. The overall results show the extent to which digital growth affects other areas of the business.
Sports payout
Lottomatica’s sports franchise posted mixed results. Bets increased by 12 per cent compared to last year, but this did not translate into higher reported revenue, which declined by 5 per cent to €142.4 million. This happened due to less favourable sports betting payout conditions, compared with Q1 2025. While customers placed more bets, the operator’s results were less favourable.
While online growth and margin expansion were the main drivers of the quarter, the Sports Franchise segment shows how short-term payout volatility can affect reported results, particularly in sports betting.
Adjusted EBITDA margin improves
Despite the negative impact of sports betting, adjusted EBITDA reached €235.5 million. This means an increase of 7 per cent year-on-year. The adjusted EBITDA margin also improved to 39.1 per cent compared to 37.6 per cent in Q1 2025.
This improvement shows that the company grew earnings faster than revenue. While revenue rose 3 per cent, adjusted EBITDA increased 7 per cent, suggesting stronger operating efficiency and better cost absorption across the business.
The underlying performance was even stronger. Lottomatica reported normalised adjusted EBITDA of €252.7 million, up 22 per cent year-on-year. This indicates that, excluding payout volatility, the company’s earnings growth would have been significantly higher.
Online growth is central
The online division of Lottomatica played a determinant role in the company’s performance for the first quarter of 2026. Revenue reached €264.7 million, going up by 10 per cent year-on-year. The reason was not only higher betting volumes but also market-share gains across digital product verticals. The company reported a total online market share that reached 31.8 per cent. Its iSports share stood at 32.5 per cent, while iGaming reached 32.2 per cent, underlining the company’s strong position in Italy’s regulated online gaming market.
These numbers show how the online market is becoming the main engine of the group. Lottomatica’s gains in both online sports betting and casino suggest a gradual change in its revenue mix. Digital channels are becoming more important, and the retail network remains a key part of the business.
Guglielmo Angelozzi, Chairman and Chief Executive Officer of Lottomatica Group, commented: “In the first quarter of 2026, we continued to see strong momentum in our addressable markets. With a positive outlook for FY 2026, we expect to close the FY 2026 Adj. EBITDA at the top end of the guidance and to return up to Euro 1 billion to shareholders in 2026 and 2027, starting this week with the launch of the newly approved buyback programme. We thank all our shareholders for their continued support.”
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