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Lottomatica Group S.P.A. (IT:LTMC)
:LTMC
Italy Market

Lottomatica Group S.P.A. (LTMC) AI Stock Analysis

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IT

Lottomatica Group S.P.A.

(LTMC)

Rating:70Outperform
Price Target:
€26.00
▲(11.59%Upside)
Lottomatica Group S.P.A. shows strong financial performance and positive technical indicators, indicating solid growth and operational efficiency. However, the high P/E ratio suggests the stock may be overvalued. Strong cash flows and improving equity returns are positive, but high leverage remains a risk if not managed carefully.
Positive Factors
Buyback Program
A share buyback program of EUR500m is expected to potentially reduce the share count by approximately 10%.
Market Share
Potential market share gains are anticipated from the new online licensing scheme.
Valuation
Despite strong share price performance, the stock remains cheap, trading at 12.9/10.5x 2025/26 P/E and 8.0/6.9x EV/EBITDA.
Negative Factors
Financial Performance
Lottomatica is considered attractively valued, trading at a lower price-to-earnings ratio compared to its peers.
Market Competition
The new online licensing scheme is expected to halve the number of operators, allowing Lottomatica to capture market share from weaker players.
Regulatory Environment
The Italian market regulation favors larger operators, which benefits Lottomatica as a key player.

Lottomatica Group S.P.A. (LTMC) vs. iShares MSCI Italy ETF (EWI)

Lottomatica Group S.P.A. Business Overview & Revenue Model

Company DescriptionLottomatica Group S.P.A. (LTMC) is a prominent player in the gaming and lottery industry, primarily operating in Italy. The company specializes in offering a wide array of gaming products and services, including traditional lotteries, sports betting, and digital gaming. Lottomatica is committed to providing innovative and entertaining gaming experiences while adhering to stringent regulatory standards and promoting responsible gaming practices.
How the Company Makes MoneyLottomatica Group S.P.A. generates revenue through a diversified portfolio of products and services in the gaming sector. The company earns significant income from its lottery operations, which include both traditional draw-based games and instant lotteries. Additionally, Lottomatica makes money from sports betting services, leveraging both physical betting shops and online platforms to reach a broad customer base. Digital gaming, including online casino games and poker, also constitutes an important revenue stream. The company benefits from strategic partnerships with technology providers and regulatory authorities, ensuring compliance and operational efficiency. By continuously innovating and expanding its offerings, Lottomatica maintains a strong competitive position in the gaming market.

Lottomatica Group S.P.A. Financial Statement Overview

Summary
Income Statement
Balance Sheet
Cash Flow
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
2.00B1.65B1.41B815.41M388.76M
Gross Profit
655.50M669.26M516.32M644.36M325.42M
EBIT
655.25M344.43M252.91M33.21M-5.88M
EBITDA
630.73M545.89M406.73M175.82M95.81M
Net Income Common Stockholders
98.60M68.30M72.12M-57.56M-49.97M
Balance SheetCash, Cash Equivalents and Short-Term Investments
194.55M825.16M237.00M153.62M153.82M
Total Assets
3.44B3.28B2.76B2.16B1.07B
Total Debt
2.15B2.00B1.86B1.52B660.32M
Net Debt
1.98B1.70B1.63B1.40B514.51M
Total Liabilities
2.87B2.74B2.65B2.15B934.57M
Stockholders Equity
517.97M498.37M51.39M-24.42M129.84M
Cash FlowFree Cash Flow
460.64M284.30M320.95M80.59M116.48M
Operating Cash Flow
524.34M407.53M412.01M130.38M157.06M
Investing Cash Flow
-341.35M-640.88M-533.28M-794.68M-351.87M
Financing Cash Flow
-313.52M293.19M231.10M643.50M340.62M

Lottomatica Group S.P.A. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price23.30
Price Trends
50DMA
20.57
Positive
100DMA
18.13
Positive
200DMA
14.97
Positive
Market Momentum
MACD
0.77
Positive
RSI
65.65
Neutral
STOCH
51.16
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:LTMC, the sentiment is Positive. The current price of 23.3 is above the 20-day moving average (MA) of 23.04, above the 50-day MA of 20.57, and above the 200-day MA of 14.97, indicating a bullish trend. The MACD of 0.77 indicates Positive momentum. The RSI at 65.65 is Neutral, neither overbought nor oversold. The STOCH value of 51.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:LTMC.

Lottomatica Group S.P.A. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
€14.43B22.5518.81%2.44%4.18%4.35%
ITCIR
71
Outperform
€552.38M4.77-1.45%-23.48%
70
Outperform
€5.86B59.47
1.29%22.80%42.68%
62
Neutral
$6.83B11.282.95%3.88%2.70%-24.56%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IT:LTMC
Lottomatica Group S.P.A.
23.34
12.52
115.71%
IT:MONC
Moncler S.p.A.
54.00
-6.10
-10.15%
IT:CIR
CIR SpA - Compagnie Industriali Riunite
0.60
0.03
5.50%

Lottomatica Group S.P.A. Corporate Events

Lottomatica Joins STOXX Europe 600 Index
Jun 3, 2025

Lottomatica Group S.p.A. has been included in the STOXX Europe 600 Index, effective from June 23, 2025. This inclusion marks a significant milestone for Lottomatica, enhancing its visibility and credibility in the European market. Being part of this index, which comprises 600 top European companies, could positively impact Lottomatica’s operations and industry positioning, potentially benefiting stakeholders by increasing investor interest and confidence.

The most recent analyst rating on (IT:LTMC) stock is a Buy with a EUR12.50 price target. To see the full list of analyst forecasts on Lottomatica Group S.P.A. stock, see the IT:LTMC Stock Forecast page.

Gamma Intermediate Completes Sale of Lottomatica Shares
May 9, 2025

Gamma Intermediate S.à r.l. has completed the sale of 26 million shares of Lottomatica Group S.p.A., representing approximately 10.3% of the company’s share capital, through an accelerated bookbuilding offering. The sale generated gross proceeds of €496.6 million, with Gamma Intermediate retaining a 21.3% stake in Lottomatica. The transaction involved several financial institutions as underwriters and legal advisors, and includes a 60-day lock-up agreement for the remaining shares.

Lottomatica Group Reports Record Q1 Results and Announces Share Buyback
May 7, 2025

Lottomatica Group S.p.A. reported its best-ever Q1 results with an adjusted EBITDA of €220 million, marking a 47% year-over-year increase. The company announced a €500 million share buyback starting in June and completed a refinancing that resulted in significant interest savings. Additionally, Lottomatica’s credit rating was upgraded, reflecting its strong financial performance and strategic growth initiatives.

Lottomatica Group Announces Dividend and Shareholders’ Meeting Minutes
May 1, 2025

Lottomatica Group S.p.A. announced the approval of its financial statements for the year ending December 31, 2024, and declared a dividend of EUR 0.30 per share. The dividend will be distributed starting May 21, 2025, through authorized intermediaries, with no applicable tax credit. The minutes of the recent Shareholders’ Meeting will be publicly accessible at the company’s registered office and online, ensuring transparency and stakeholder engagement.

Lottomatica Group Approves 2024 Financials and Dividend Distribution
Apr 30, 2025

Lottomatica Group S.p.A. held its Ordinary and Extraordinary Shareholders’ Meeting, approving the 2024 financial statements and a dividend distribution of €0.30 per share. The meeting also authorized the purchase and disposal of treasury shares, approved amendments to the Articles of Association, and endorsed the remuneration policy. The company reported a 23% increase in consolidated revenues for 2024, reflecting strong financial performance and positioning in the gaming industry.

Lottomatica Group S.p.A. Launches €600 Million Senior Secured Notes
Apr 23, 2025

Lottomatica Group S.p.A. announced the launch of €600 million in Senior Secured Notes due 2031, aiming to use the proceeds to redeem existing notes and amend its revolving credit facility. This strategic financial move is expected to enhance the company’s liquidity and financial flexibility, potentially strengthening its market position and offering benefits to its stakeholders.

Lottomatica Group Announces Shareholders’ Meeting for Financial Approvals and Bylaw Amendments
Mar 28, 2025

Lottomatica Group S.p.A. has announced its Ordinary and Extraordinary Shareholders’ Meeting scheduled for April 9, 2024, to discuss and approve the financial statements for the year ending December 31, 2023, and address amendments to the company’s bylaws. The meeting will be conducted via telecommunication, with participation and voting facilitated through a designated proxy. This meeting is crucial for stakeholders as it will determine financial allocations and governance changes, impacting the company’s strategic direction and compliance with legislative requirements.

Lottomatica Group Releases 2024 Annual Financial Report
Mar 27, 2025

Lottomatica Group S.p.A. has published its Annual Financial Report for the year ending December 31, 2024, along with various governance and remuneration reports. These documents, prepared in compliance with European and Italian regulatory standards, reflect the company’s commitment to transparency and sustainability in its operations.

Lottomatica Group S.p.A. Announces Shareholders’ Meeting for April 2025
Mar 21, 2025

Lottomatica Group S.p.A. has announced the convening of its Ordinary and Extraordinary Shareholders’ Meeting on April 30, 2025, which will be held exclusively via telecommunication. The agenda includes approval of financial statements, a share buyback program, and amendments to the Articles of Association, impacting the company’s governance and financial strategies.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.