This Gambling Giant May Be Heading for the Stock Market
Lottomatica Contemplates Initial Public Offering (IPO) for Boosted Q4 and FY22 Expansion
Lottomatica, Italy's master of games, is spicing up the rumor mill by considering a sneaky trip to the stock market. In a casual nod to the world of investments, the company's board, in cahoots with Apollo Global Management, has sparked talk about potential strategic alternatives, including a daring capital markets transaction such as an initial public offering (IPO).
The hint dropped when Lottomatica dished out its trading update for Q4 2022 and its yearly results. A flurry of whispers had been circulating that the betting and gaming operator could make a splash in 2023, eyeing a potential $1 billion raise through a public listing.
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Lottomatica displayed a robust Q4 performance, fueled by organic growth and the acquisition of Italian sportsbook Betflag in November. This strategic move added a potent new brand to their repertoire, beefing up their iCasino and Online divisions.
The operator enjoyed a record quarter in Bets, raking in €6.7 billion, up 17% year-over-year (or 11% when excluding Betflag's contribution). Online and Sports Franchise registered growth of 18% and 17%, respectively, while Gaming Franchise hustled its way to a 5% increase.
The quarter's revenue swelled by 7% to approximately €377 million, or 6% if you ignore Betflag's impact. EBITDA is expected to stand between €115 million and €119 million, growing 11%-15% year-over-year, or 7%-11% sans the luxury of Betflag's boost. Online makes up a whopping 46% of the EBITDA pie, or 50% when you throw Betflag's influence into the mix.
Year-Long Triumphs and Forecasts
Anticipating the release of its full-year results by early March, Lottomatica estimates Q4 Bets at around €22.8 billion, revenues of approximately €1.4 billion, and EBITDA of between €458 million and €462 million.
Looking ahead, the company expects FY 2022 EBITDA to hover between €516 million and €520 million, with Betflag synergies of approximately €6 million already being put to use. The year generated brisk cash flow, with operating cash flow projected to range between €385 million and €395 million (soaring to €422 million-€432 million after the Betflag acquisition).
While the exact details of their impending move are still veiled in speculation, the market is abuzz with excitement, eagerly awaiting the fate of Lottomatica's shares on the regulated market. Whether they choose to go public or remain loyal to their existing investors, one thing is certain—Lottomatica's unyielding drive for growth and market domination shows no signs of slowing down.
Some recent strategic initiatives include a confident €500 million share buyback program running over the next 18 months, aiming to boost shareholder value, and debt refinancing moves to secure their financial footing for the future. They're also betting big on AI-driven personalization, with the goal of bolstering growth in the coming years. Stay tuned as this thrilling saga unfolds!
- Lottomatica, the Italian gambling giant, is considering a strategic move to the stock market in 2023, potentially raising $1 billion through a public listing, hinted by a trading update in Q4 2022.
- Apollo Global Management, a global finance firm, has been involved in these discussions, suggesting a potentially significant partnership for Lottomatica's listing.
- In the casino and gambling industry, Lottomatica stands out with its extensive portfolio, recently expanding with the acquisition of Italian sportsbook Betflag.
- Aside from the anticipated public listing, Lottomatica is also focusing on other strategic initiatives, such as a €500 million share buyback program and debt refinancing, aiming to fortify their financial standing and growth in the coming years.
