SKS365 acquisition puts Lottomatica in strong position for new look Italy market
Lottomatica increased its market share in the highly competitive and regulatory tough Italian gaming space by around 2% during the first half of the year, according to the group’s latest financial statement.
Publishing its Q2 and H1 accounts, the betting, gaming and lottery group outlined total revenue of €1.1bn for H1 and €543.1m for Q2, representing year-over-year growth of 15% and 10% respectively, with growth occurring across its three main product verticals.
The group has closed H1 well in the black, with adjusted EBITDA for January-June up 33% YoY to €422.4m while the Q2 figure was also up 20% to €201.9m. Adjusted net profit at the end of the six month period stood at €179.3m.
“In the second quarter of 2025 we have continued our solid path of double-digit organic growth for Revenues and EBITDA, supported by solid market tailwinds,” said Guglielmo Angelozzi, Chairman and CEO of Lottomatica Group.
SKS365 sets Lottomatica up for Italy stardom
Italian sports betting is a difficult space to compete in, with market observers noting the market as one for the biggest players – mainly large publicly traded companies with substantial resources and financial backing like Flutter Entertainment, Entain, and Lottomatica.
Lottomatica’s takeover of SKS365, a prominent online sportsbook in the country which its new owner has since rebranded as PWO, seems to have given it a big leg up in the competitive Italian sportsbook scene.
The company states that the integration of SKS365/PWO’s online and retail assets remains on track, and that it is targeting synergies of €87m by 2026. Amidst this integration, the firm’s sports betting operations have taken a big leap forward.
“We have completed the migration of PWO onto our proprietary tech platform thereby positioning Planetwin to fully leverage our capabilities to capture market growth,” Angelozzi remarked.
Revenue from the sports franchise rose 31% in H1 and 8% in Q2 to €279.3m and €128.9m respectively. Like other betting firms, both B2B and B2C, Lottomatica noted what it called an ‘unfavourable impact’ due to the UEFA Euros occurring last year.
This tournament, one of the biggest betting events in global sports let alone in Europe, often leads to difficult comparatives the year after, though it seems that Lottomatica was able to comfortably ride this out.
The group noted that Euro 2024 comparatives were partially offset by the FIFA Club World Cup in Q2, though it seems that FIFA’s expanded 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 comparison to sports betting, revenue growth for Lottomatica’s gaming segment was not nearly impressive, though it was growth nonetheless. H1 revenue was up 2% to €386.5m while Q2 revenue was up 3% to €190.9m.
The competitive nature of Italian betting cannot be overstated. The ADM, Italy’s Customs and Monopolies agency, confirmed earlier this month that it has received 52 licence applications from 46 companies during the tender process for operators wishing to compete in the country’s forthcoming ‘refreshed market’.
It is also a market which is subject to a number of restrictions, notably around sponsorships, which are banned outright. Some firms have found ways around this, however, by setting up infotainment partnerships between football clubs and their homegrown media brands.
Looking over its H1 figures, Lottomatica has likely gained a lot of confidence in its prospects in this new marketplace, with Q2 repeating the same successes as Q1. The firm has now confirmed guidance for 2025, expecting revenue of between €2.32bn-€2.36bn and adjusted EBITDA between €840m-€870m by the end of the year.
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