SKS365 Acquisition Puts Lottomatica in Strong Position for make over Italy Market
Lottomatica increased its market share in the highly competitive and regulative tough Italian video gaming space by around 2% throughout the very first half of the year, according to the group's newest monetary statement.
Publishing its Q2 and H1 accounts, the betting, video gaming and lottery game group detailed overall revenue of EUR1.1 bn for H1 and EUR543.1 m for Q2, representing year-over-year growth of 15% and 10% respectively, with development taking place throughout its 3 main product verticals.
The group has actually closed H1 well in the black, with changed EBITDA for January-June up 33% YoY to EUR422.4 m while the Q2 figure was likewise up 20% to EUR201.9 m. Adjusted net profit at the end of the six month period stood at EUR179.3 m.
"In the 2nd quarter of 2025 we have continued our solid course of double-digit natural development for Revenues and EBITDA, supported by strong market tailwinds," stated Guglielmo Angelozzi, Chairman and CEO of Lottomatica Group.
SKS365 sets Lottomatica up for Italy stardom
Italian sports wagering is a hard area to complete in, with market observers keeping in mind the market as one for the most significant players - mainly big publicly traded business with substantial resources and sponsorship like Flutter Entertainment, Entain, and Lottomatica.
Lottomatica's takeover of SKS365, a popular online sportsbook in the nation which its brand-new owner has actually since rebranded as PWO, seems to have actually provided it a big upper hand in the competitive Italian sportsbook scene.
The company specifies that the integration of SKS365/PWO's online and retail properties stays on track, and that it is targeting synergies of EUR87m by 2026. Amidst this combination, the firm's sports betting operations have actually taken a huge leap forward.
"We have finished the migration of PWO onto our proprietary tech platform thus positioning Planetwin to totally leverage our abilities to catch market development," Angelozzi said.
Revenue from the sports franchise increased 31% in H1 and 8% in Q2 to EUR279.3 m and EUR128.9 m respectively. Like other wagering companies, both B2B and B2C, Lottomatica noted what it called an 'damaging impact' due to the UEFA Euros happening in 2015.
This competition, one of the greatest betting occasions in international sports let alone in Europe, often leads to hard comparatives the year after, though it seems that Lottomatica had the ability to conveniently ride this out.
The group kept in mind that Euro 2024 comparatives were partly balanced out by the FIFA Club World Cup in Q2, though it appears that FIFA's broadened club tournament was not as impressive as the Euros or World Cup, something also noted by the likes of Betsson.
Gaming and other considerations
In contrast to sports wagering, profits growth for Lottomatica's gaming segment was not nearly remarkable, though it was development nevertheless. H1 revenue was up 2% to EUR386.5 m while Q2 earnings was up 3% to EUR190.9 m.
The competitive nature of Italian wagering can not be overstated. The ADM, Italy's Customs and Monopolies agency, verified earlier this month that it has actually gotten 52 licence applications from 46 companies throughout the tender procedure for operators wishing to complete in the nation's market'.
It is also a market which is subject to a variety of limitations, significantly around sponsorships, which are banned outright. Some companies have discovered methods around this, however, by establishing infotainment collaborations in between football clubs and their homegrown media brands.