€12.4B Handle. 57.5% Online Margins: Under Guglielmo Angelozzi, Lottomatica Group Is Building a Margin-Led Model
Lottomatica opened 2026 with continued online-led growth and margin expansion, while retail sports remained structurally exposed to payout volatility.
The group reported €12.4bn in total handle (+11% YoY), with online again the primary growth engine (+15%), reinforcing the structural shift away from retail channels.
Online drives growth as market share consolidates
Under CEO Guglielmo Angelozzi, Online revenue reached €265m (+10% YoY, +17% normalised), supported by market share gains across both iGaming and sports betting. Total online share increased to 31.8%, with iGaming outperforming at 32.2%.
This confirms effective execution in product and acquisition, with Lottomatica further consolidating share in an already concentrated Italian market. The recovery of PWO share post-migration – now partially reversed – indicates stabilisation of prior platform disruption.
Sports volatility masks underlying growth
Group revenue grew modestly to €602m (+3%), but underlying performance was stronger once adjusted for adverse sports payout.
Retail sports revenue declined 5% YoY, highlighting continued sensitivity to short-term betting outcomes. However, normalised growth (+11%) points to stable underlying demand.
This divergence reinforces a structural reality: retail sports is both margin-volatile and strategically subordinate to online across growth and profitability.
Margin expansion led by online mix
Adjusted EBITDA reached €236m (+7%), or +22% on a normalised basis, with margin improving to 39.1%.
Online delivered the majority of expansion, with EBITDA margin rising to 57.5%. In contrast, sports franchise margins compressed significantly (24.6% vs 30.4% last year), again reflecting payout pressure.
The shift toward higher-margin online revenue is now the primary driver of group profitability, materially insulating earnings from sports volatility.
Cash generation supports aggressive capital return
Operating cash flow increased to €196m, broadly tracking EBITDA growth .
Leverage reduced slightly to 2.3x, while April refinancing lowered the cost of debt to 4.9%, improving financial flexibility. The €765m bond issuance adds balance sheet flexibility, supporting bolt-on M&A while prioritising shareholder returns.
Lottomatica has authorised up to €1bn in shareholder distributions (dividends and buybacks) through 2027, signalling confidence in cash generation and limited near-term need for large-scale acquisitions.
Strategic read-through
Three structural takeaways define the quarter:
- Online dominance is accelerating: growth, margins and share continue to shift structurally to digital
- Retail sports is a volatility drag: still relevant for scale, but increasingly margin-dilutive
- Capital allocation is disciplined but flexible: buybacks prioritised, with optionality retained for bolt-on deals
The company maintains guidance for FY2026 EBITDA at the top end of its range, contingent on normalised sports outcomes.
Source: Lottomatica Group
