Key Moments:
- Lottomatica reported €1.64 billion in total revenue for the nine months ending 30 September 2025, reflecting 16% year-on-year growth
- The SKS365 acquisition (now PWO) was fully integrated ahead of schedule, with two-thirds of anticipated synergies expected to materialize within 2025
- Online operations led performance, contributing €688.9 million in revenue, a 27% increase year-on-year
Disciplined Approach to Mergers and Acquisitions
Lottomatica Group CEO and chairman Guglielmo Angelozzi highlighted the company’s disciplined, value-driven approach to mergers and acquisitions. This statement followed robust financial results for the nine months ending 30 September 2025. The strong performance stemmed from online expansion and the successful integration of SKS365, acquired in April 2024 and now operating as PWO.
Lottomatica completed the SKS365 integration faster than projected, which allowed the company to capture cost and technology synergies early. Moreover, it expects two-thirds of the deal’s total synergies to materialize in 2025.
Guglielmo Angelozzi emphasized on an earnings call that Lottomatica remains cautious about further acquisitions. He stated that new deals will only proceed if they clearly generate shareholder value surpassing a share buyback.
“Over the past five years, we have identified 57 potential M&A targets,” Angelozzi explained. “We performed due diligence on 14, but moved forward with only three — all in Italy. We have a very selective approach, and we are committed to it.”
The company’s acquisitions to date include Betflag (late 2022), a 65% stake in Distante S.r.l earlier this year, and SKS365 (PWO). These transactions align with Lottomatica’s focus on regulated European markets, B2C models, and verticals such as online gaming, sports betting, and gaming.
Online Segment Drives Revenue Growth
Online operations were the highlight of Lottomatica’s performance, accounting for €688.9 million in revenue. This figure marks a 27% increase year-on-year and now constitutes the largest portion of the group’s revenue.
The boost in online revenue came not only from incorporating PWO’s business but also from steady results across legacy brands and all product categories. Although Euro 2024 temporarily dampened betting activity, this was offset by elevated engagement during the FIFA Club World Cup in the second quarter.
Sports betting generated €381.7 million, a 22% increase, supported by strong payout margins and PWO’s full contribution. The gaming division experienced slower growth, registering a 2% rise to €569.6 million.
| Segment | Revenue (€ millions) | Year-on-Year Growth |
|---|---|---|
| Online | 688.9 | 27% |
| Sports Betting | 381.7 | 22% |
| Gaming | 569.6 | 2% |
Throughout all business lines, player engagement remained robust with 32.48 billion bets placed during the period: 21.63 billion online, 8.05 billion in gaming, and 2.81 billion in sports betting.
Financial Performance and Forward Strategy
Operating expenses increased, mainly in services, personnel, and other areas, but these were partially compensated by lower financial charges. Pre-tax profit reached €158.4 million, a 59.5% uplift from the previous year. After €60.1 million in taxes and €5 million in adjustments for minority interests, net profit settled at €93.3 million, a 102.8% annual rise.
Looking to the future, Angelozzi stated that Lottomatica will prioritize efficiency in cash flow, digital advancement, and prudent allocation of capital to maximize returns for shareholders.
“Looking forward, we continue to see solid growth drivers supported by market tailwinds in online, continued improvement in our cash flow conversion and growth, and a disciplined approach to capital allocation focused on shareholder returns,”
With PWO successfully integrated and synergy targets being met ahead of projections, Lottomatica turns its attention to organic growth and remains committed to pursuing only those acquisitions that prove their long-term value.
- Author
Daniel Williams
