SKS365 Acquisition Puts Lottomatica in Strong Position for new Look It…

Lottomatica increased its market share in the highly competitive and regulatory hard Italian 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 wagering, gaming and lottery game group described total profits of EUR1.1 bn for H1 and EUR543.1 m for Q2, representing year-over-year development of 15% and 10% respectively, with growth happening across its 3 primary product verticals.

The group has closed H1 well in the black, with adjusted EBITDA for January-June up 33% YoY to EUR422.4 m while the Q2 figure was also up 20% to EUR201.9 m. Adjusted net earnings at the end of the six month period stood at EUR179.3 m.

"In the 2nd quarter of 2025 we have actually continued our strong course of double-digit organic growth for Revenues and EBITDA, supported by solid market tailwinds," stated Guglielmo Angelozzi, Chairman and CEO of Lottomatica Group.

SKS365 sets Lottomatica up for Italy stardom

Italian sports wagering is a hard space to compete in, with market observers keeping in mind the market as one for the greatest players - primarily big publicly traded business with significant resources and financial support like Flutter Entertainment, Entain, and Lottomatica.

Lottomatica's takeover of SKS365, a prominent online sportsbook in the nation which its new owner has actually because rebranded as PWO, appears to have actually provided it a huge leg up in the competitive Italian sportsbook scene.

The business specifies that the integration of SKS365/PWO's online and retail assets stays on track, which it is targeting synergies of EUR87m by 2026. Amidst this combination, the company's sports betting operations have actually taken a huge leap forward.

"We have completed the migration of PWO onto our exclusive tech platform thereby placing Planetwin to completely take advantage of our abilities to catch market development," Angelozzi said.

Revenue from the sports franchise 31% in H1 and 8% in Q2 to EUR279.3 m and EUR128.9 m respectively. Like other betting firms, both B2B and B2C, Lottomatica noted what it called an 'unfavourable effect' due to the UEFA Euros happening last year.

This tournament, among the most significant wagering events in global sports not to mention in Europe, typically results in hard comparatives the year after, though it seems that Lottomatica was able to easily ride this out.

The group kept in mind that Euro 2024 comparatives were partially balanced out by the FIFA Club World Cup in Q2, though it seems that FIFA's broadened club competition was not as excellent as the Euros or World Cup, something also kept in mind by the likes of Betsson.

Gaming and other considerations

In contrast to sports wagering, revenue development for Lottomatica's gaming sector was not almost outstanding, though it was development nonetheless. H1 income was up 2% to EUR386.5 m while Q2 revenue was up 3% to EUR190.9 m.

The competitive nature of Italian betting can not be overstated. The ADM, Italy's Customs and Monopolies agency, confirmed previously this month that it has gotten 52 licence applications from 46 companies throughout the tender process for operators wanting to complete in the country's upcoming 'revitalized market'.

It is likewise a market which is subject to a number of limitations, significantly around sponsorships, which are banned outright. Some firms have actually discovered methods around this, nevertheless, by setting up infotainment partnerships between football clubs and their homegrown media brand names.