Lottomatica Group SpA LOTMY

Consumer DiscretionaryHotels & Entertainment ServicesItaly

Last close 28.78 USD on Nov 1, 2026, +10.6% year to date

Quant rating

Quant rating B Rank 100 of 297 in Consumer Discretionary

Growth D 250 of 297
Valuation C 182 of 297
Quality A 34 of 297
Revisions C 129 of 297
Momentum B 86 of 297

Wall Street consensus Buy (1.62)Average target 36.65 USD +27.3%

Historical valuation

Multiples use consensus estimates for the next twelve months. The dashed line is the 5-year average.

Key data

Market cap: 7.3B
Enterprise value: 9.6B
52-week range: 21.65 – 33.10
3-year range: 21.65 – 33.10
Dividend yield: 1.78%
Beta (5 years): –
Shares outstanding: 252M
Next earnings: Nov 2, 2026

About the company

Lottomatica Group SpA, formerly known as Gamma Midco SpA, is an Italy-based holding company engaged in the Betting and Lottery industry. The Company operates in three segments: Sports Betting and Online Gaming (Online), Sports Betting and Gaming through the Retail Network (Sports Franchise), and Amusement and Entertainment Machines (Gaming Franchise). The segment Gaming Franchise includes the direct management of gaming centers and concessionary activities for Video Lottery Terminals (VLTs) and Amusement With Prizes (AWPs). The segment Sports Franchise consists of a wide range of retail offerings including, but not limited to, sports betting, virtual betting, and horserace betting. Online includes iSports (sports, virtual and horse race betting in the online channel), iGaming (online casino) and other online products (such as bingo, poker, skill games, betting exchange, etc.). The Entity operates mainly in the Italian territory.

Growth and profitability fiscal year ends December 31

Growth and profitability by fiscal year
	2025	2024	2023	2022	2021	5Y avg
Revenue (mil)	2,639	2,075	1,802	1,493	919	–
Revenue growth	27.2%	15.2%	20.7%	62.5%	97.8%	41.6%
EPS (basic, normalized)	1.71	1.07	1.00	–	–	–
EPS growth	59.1%	7.3%	–	–	–	–
Gross margin	43.4%	41.1%	41.3%	37.1%	34.2%	39.4%
Net margin	7.8%	4.9%	4.2%	5.2%	−7.1%	3.0%
ROE	41.3%	19.4%	24.7%	534.8%	−109.2%	102.2%

Balance sheet, last quarter
Cash & short-term investments (mil)	453
Current ratio	0.81x
Long-term debt (mil)	2,731
Net debt (mil)	2,390
Total equity (mil)	258
Net debt / equity	9.26x
Net debt / EBITDA	2.40x

Estimates and valuation

Consensus estimates and implied multiples
	Sales (mil)			EBITDA (mil)			EPS
Fiscal year	Mean est.	Growth	EV/Sales	Mean est.	Growth	EV/EBITDA	Mean est.	Growth	P/E
2025 actual	2,639	+27.2%	3.6x	994	+34.0%	9.7x	1.71	+59.1%	16.9x
2026	2,677	+1.4%	3.6x	1,067	+7.3%	9.0x	2.06	+20.5%	14.0x
2027	2,873	+7.3%	3.4x	1,186	+11.1%	8.1x	2.54	+23.5%	11.3x
2028	3,040	+5.8%	3.2x	1,283	+8.1%	7.5x	2.92	+14.9%	9.9x

Estimate revisions

Change in consensus estimates over 1, 3 and 6 months
	Sales				EPS
Fiscal year	Estimate (mil)	1M	3M	6M	Estimate	1M	3M	6M
2026	2,677	−0.8%	−1.0%	−1.7%	2.06	−2.3%	−2.3%	−2.4%
2027	2,873	−0.2%	−0.3%	−1.0%	2.54	−0.3%	−0.5%	−0.7%
2028	3,040	−0.3%	−0.4%	−1.4%	2.92	−0.3%	+0.5%	+1.4%

Earnings surprises EPS beat in 2 of the last 4 quarters

Reported results versus consensus, last 10 fiscal quarters
Quarter ended	FQ-9	FQ-8	FQ-7	FQ-6	FQ-5	FQ-4	FQ-3	Dec 2025	Mar 2026	Jun 2026
Sales reported (mil)	440	492	486	587	585	540	510	613	600	564
Sales mean (mil)	433	452	480	598	587	547	523	610	598	579
Surprise	+1.7%	+8.8%	+1.1%	−1.7%	−0.4%	−1.2%	−2.5%	+0.4%	+0.2%	−2.6%
EPS reported	–	–	–	–	–	–	–	0.42	0.42	0.37
EPS mean	–	–	–	–	–	–	0.20	0.59	0.33	0.33
Surprise	–	–	–	–	–	–	–	−28.9%	+29.2%	+13.5%

Peer comparison Hotels & Entertainment Services

Peers in the same industry group, by market capitalization
Company	Market cap	Net debt/EBITDA	Net margin	P/B	FY1 P/E	FY2 P/E	FY1 EV/EBITDA	FY2 EV/EBITDA
LOTMY Lottomatica Group SpA	7.3B	2.40x	7.8%	26.92x	14.0x	11.3x	9.0x	8.1x
WYNN Wynn Resorts, Limited	7.7B	3.55x	4.6%	−45.56x	16.7x	15.2x	7.7x	7.4x
MGM MGM Resorts International	7.6B	0.93x	1.2%	3.01x	17.2x	17.9x	3.0x	3.0x
BROS Dutch Bros Inc.	7.5B	1.71x	4.9%	9.39x	44.2x	33.5x	20.8x	16.5x
CAVA CAVA Group, Inc.	6.9B	−2.85x	5.4%	8.16x	108.1x	79.0x	34.4x	27.2x
LNWO Light & Wonder, Inc.	6.8B	3.45x	8.3%	10.62x	17.2x	13.8x	7.8x	7.3x
Mean		1.53x	5.4%	2.09x	36.3x	28.4x	13.8x	11.6x
Median		2.06x	5.1%	8.77x	17.2x	16.5x	8.4x	7.8x

Technical analysis

1M−3.6%
3M+2.8%
1Y+19.7%
3Y+22.3%

Financial statements in millions of USD

Income statement in millions of USD, fiscal years

Income statement, Lottomatica Group SpA, fiscal years, most recent first
	2025	2024	2023	2022	2021	2020
Total revenue	2,639	2,075	1,802	1,493	919	464
Cost of revenue	1,494	1,222	1,058	939	604	307
Gross profit	1,146	853	744	554	314	157
Selling, general & administrative expenses	284	194	148	107	98.3	42.8
Research & development	–	–	–	–	–	–
Depreciation/amortization	307	253	214	165	162	124
Interest expense (income), operating	0	0	0	0	0	0
Unusual expense (income)	0.7	−4.9	−23.8	1.5	0.6	1.1
Other operating expenses	6.2	6.1	5.8	3.2	1.1	−7.6
Operating income	548	406	400	277	52.2	−3.4
Net interest income (expense)	−137	−149	−160	−115	−80.9	−47.8
Gain (loss) on sale of assets	–	–	–	–	–	–
Other non-operating income (expense)	−86.6	−69.8	−88.8	−19.0	−28.5	−10.7
Net income before taxes	324	187	151	143	−57.1	−61.9
Provision for taxes	113	79.8	69.8	58.7	8.7	0.2
Minority interest	−6.5	−5.4	−6.5	−6.8	0.4	1.1
Equity in affiliates	–	–	–	–	–	–
U.S. GAAP adjustment	–	–	–	–	–	–
Net income before extraordinary items	205	102	75.0	77.2	−65.4	−61.0
Extraordinary items	–	–	–	–	–	–
Net income	205	102	75.0	77.2	−65.4	−61.0
EBIT, normalized	697	480	429	329	97.9	10.8
EBITDA, normalized	1,003	733	643	494	260	135
Basic EPS, normalized	1.71	1.07	1.00	–	–	–

Balance sheet in millions of USD, fiscal years

Balance sheet, Lottomatica Group SpA, fiscal years, most recent first
	2025	2024	2023	2022	2021	2020
Assets
Cash & short-term investments	206	201	911	280	175	188
Receivables	118	96.3	114	97.2	135	37.2
Total inventory	1.9	1.5	1.6	3.4	0.1	0.1
Prepaid expenses	28.4	14.7	9.1	9.4	–	–
Other current assets	125	139	116	143	88.4	36.1
Total current assets	480	453	1,152	533	398	261
Property, plant & equipment	270	231	197	176	183	80.1
Goodwill	2,444	2,121	1,623	1,529	1,296	672
Intangibles	876	723	636	647	521	251
Long-term investments	19.3	2.6	1.5	47.7	21.6	7.0
Note receivable	7.3	3.1	3.5	3.2	2.6	6.7
Other long-term assets	18.4	24.9	13.4	13.7	36.6	24.3
Total assets	4,114	3,558	3,626	2,950	2,459	1,303
Liabilities
Accounts payable	154	138	106	106	92.1	41.7
Payable/accrued	–	–	–	–	–	–
Accrued expenses	14.4	9.0	25.1	63.5	30.8	16.0
Short-term debt	0	0	0	0	0.1	0
Current portion of long-term debt	55.4	72.7	123	29.9	154	11.2
Other current liabilities	746	385	381	361	254	141
Total current liabilities	970	605	634	561	532	210
Long-term debt	2,391	2,069	2,185	2,064	1,748	833
Minority interest	61.6	49.2	47.7	59.0	40.6	3.2
Other liabilities	310	298	210	211	167	98.7
Total liabilities	3,732	3,022	3,077	2,895	2,487	1,145
Shareholders' equity
Preferred stock	–	–	–	–	–	–
Common stock	11.7	10.4	11.0	0.1	0.1	0.1
Additional paid-in capital	433	381	479	0	–	–
Retained earnings (accumulated deficit)	288	144	59.8	54.9	−27.8	159
Treasury stock	−351	–	–	–	–	–
Other equity	0	0	0	0	0	0
Total equity	382	536	550	55.0	−27.8	159
Total liabilities & shareholders' equity	4,114	3,558	3,626	2,950	2,459	1,303

Cash flow statement in millions of USD, fiscal years

Cash flow statement, Lottomatica Group SpA, fiscal years, most recent first
	2025	2024	2023	2022	2021	2020
Operating activities
Net income	324	187	152	144	−57.1	−61.9
Depreciation, depletion & amortization	307	253	214	164	162	124
Deferred taxes	–	–	–	–	–	–
Non-cash items	262	218	232	141	114	58.1
Changes in working capital	−147	−115	−148	−8.1	−70.5	71.4
Cash from operations	746	543	450	441	148	192
Investing activities
Capital expenditures	−269	−188	−136	−97.5	−56.6	−49.6
Other investing cash flows	−78.5	−166	−571	−473	−847	−380
Cash from investing	−347	−353	−707	−571	−903	−430
Financing activities
Financing cash flow items	−161	−171	−159	−105	−373	−53.2
Cash dividends paid	−91.8	−69.5	−2.2	–	–	–
Issuance (retirement) of debt, net	–	–	–	–	–	–
Other financing cash flows	−169	−84.1	485	352	1,105	469
Cash from financing	−422	−325	324	247	732	416
Foreign exchange effects	–	–	–	–	–	–
Net change in cash	−23.8	−135	66.0	118	−23.7	178
Free cash flow	477	355	314	343	91.6	142

Disclaimer

The financial data presented in this report is delayed and obtained from sources QDD Research believes to be reliable, including stock exchanges, SEDAR, and EDGAR. However, no representation or warranty is made as to the accuracy, completeness, or timeliness of the information. QDD Research accepts no liability for any errors, omissions, or financial losses arising from the use of this data.

This report is generated using a fully systematic and quantitative approach. All factor scores and the overall quant rating (ranging from D to A+) are derived from algorithmic models and are based solely on objective financial metrics. These scores are intended for informational purposes only and should not be interpreted as investment advice or a recommendation to buy, sell, or hold any securities.

QDD Research is not a registered investment advisor or broker-dealer and does not provide personalized financial advice. The content is not tailored to the specific investment goals, financial situation, or risk profile of any individual investor. We strongly encourage readers to consult with a licensed broker or investment advisor before making any investment decisions based on the information contained in this report.

Live quote provided by TradingView. Report data updated Nov 1, 2026 after market close.