Marginal declines in Lottomatica’s gaming segment were offset by revenue growth across its online division in 2025, as Italy’s biggest gambling group cited the successful integration of SKS365 as a key driver for growth.
Publishing its financial results for the 12 months ended 31 December 2025, Lottomatica reported that overall group revenues increased by 12% year-on-year to €2.26bn, with Q4 revenue rising by 5% to €615m.
Online a key driver for growth
Breaking down each segment, online amounted to €954.5m, up 22% compared to FY24 growth is driven by “the market share growth across all product segments and legacy brands as well as the contribution from the PWO acquisition”. This was further compounded by an overall favourable sports betting payouts benefitting SKS365 during the year.
Lottomatica continued to prioritise its expansion within its heritage lottery space. Growth within online gaming now accounts for 43% of total revenue, showing a shift in strategy as it continues to meet the evolving demands of the Italian market.
Total online market share rose to 31.3% during the period. Lottomatica noted that this growth has demonstrated its ability to absorb market share left behind by smaller operators that were unable to comply with the country’s stricter licensing requirements, introduced at the end of 2025 by Italy’s ADM.
The sports franchise reported €527.2m in revenues for the year, up 14%. However, the gaming segment was the division which reported the lowest comparable growth, with revenues rising by 1% to €773.6m.
Despite the slower growth in gaming revenues, Lottomatica is confident that in 2026, revenues will amount to somewhere between €2.39bn and €2.46bn, and adjusted EBITDA of between €940m and €980m.
Guglielmo Angelozzi, Chairman and Chief Executive Officer of Lottomatica Group, commented: “2025 was a year that highlighted our ability to evolve, innovate, and continue to grow in an attractive market environment. We closed 2025 with revenues exceeding €2.25bn, adjusted EBITDA of €856m, up 12% and 21% respectively compared to 2024, and adjusted net profit of €369m, up 45%.
“We have consolidated our leadership in the gaming sector with an online market share of 31% and in excess of 40% in the sports retail segment. We completed the integration of PWO and have been awarded new online gaming concessions in November, which provides regulatory stability and clarity for the next nine years.”
PWO integration driving synergies
During the 12 months, Lottomatica also reported that the integration of the SKS365 brand was finalised ahead of schedule. Of note is the fact that synergies stemming from the integration reached €87m, vastly exceeding the original target of €65m.
Lottomatica shared that one of the greatest catalysts for this growth was the incorporation of the PWO brand onto Lottomatica’s proprietary tech stake at the end of last year, with the operator remaining optimistic that the brand will continue to spearhead new growth throughout 2026.
Of significance, Lottomatica’s 2025 activities ended with the renewal of its Lotto Italia contract until 2038. The tender was won in partnership with Brightstar Lottery as lead technology supplier, beating the bids made by SISAL and Flutter Entertainment.
Group accounts detailed that Lottomattica’s current cash position stands at €657m, up from €556m reported in FY24, as speculation mounts that leadership will pursue further M&As to enhance its market share in Italy’s online gambling sector.
Looking ahead for Lottomatica
Now that the heavy lifting of the SKS365 agreement is over, Lottomatica has raised its EBITDA guidance for 2026 to between €940m – €980m.
Angelozzi added: “Looking ahead, 2026 will be a year of further consolidation and evolution, we will continue our strategy of organic growth and targeted bolt-ons, further enhance our product and technology capabilities and invest in brand development and in the expansion and efficiency of our retail network, always aiming for the highest levels of reliability and security in our offering,” Angelozzi added.
“In light of our strong cash flow generation in 2026 and a solid balance sheet, we requested the authorisation to buy back up an additional 12.5% of the share capital for capital returns, which will continue to compete for excess cash with M&A and other capital allocation opportunities, with a view to maximise shareholder returns.”
