Lottomatica Group (LTMC) Q1 2026 earnings summary

Executive summary

• Achieved strong Q1 2026 results with double-digit normalized EBITDA and revenue growth, despite negative sports payout headwinds compared to a favorable prior year.

• Online segment led growth, with bets up 15% YoY and revenues up 10% YoY, while Sports Franchise fully recovered market share post-migration.

• Strategic refinancing of €765 million, including €400 million for refinancing, lowered cost of debt from 5.3% to 4.9%.

• Strong commitment to shareholder returns, targeting up to €1 billion in 2026-2027 via dividends and buybacks, with a confirmed €0.44/share dividend.

• Net profit for Q1 2026 was €69.3 million, up from €51.5 million in Q1 2025.

Financial highlights

• Q1 2026 normalized revenues up 10% and EBITDA up 22% YoY; reported revenues up 3% and EBITDA up 7%.

• Adjusted EBITDA margin improved to 39.1% from 37.6% YoY, driven by higher online contribution.

• Online revenues grew 10% YoY normalized, with bets up 15%; Sports Franchise revenues declined 5% despite 12% bet growth.

• Operating cash flow reached €196 million, up 6% YoY.

• Net financial debt at €2.05 billion as of March 31, 2026, with net leverage at 2.3x.

Outlook and guidance

• FY 2026 Adjusted EBITDA expected at the top end of guidance, supported by strong market trends and cost efficiencies.

• Up to €1 billion planned to be returned to shareholders by 2027, including dividends and buybacks.

• Dividend of €0.44 per share confirmed, totaling approximately €111 million.

• Guidance reflects both revenue growth and operating leverage; World Cup expected to provide additional tailwind.

• Board reaffirmed 2026 guidance based on strong Q1 performance and positive forecasts.