International edition
September 21, 2021

Revenue and EBITDA raises’ estimates to €2.8 – €2.9 billion, and €890 – €910 million

Lottomatica announces strong 2011 first-quarter results

(Italy).- Lottomatica’s Board of Directors, chaired by Lorenzo Pellicioli, approved the consolidated financial statements for the first quarter which ended March 31. Marco Sala, CEO of Lottomatica Group, said: “Our positive first-quarter results further reinforce the momentum we experienced in the fourth quarter of 2010.”

The fundamentals of our business are sound and sustainable. Investments and innovations are fuelling our growth. Accordingly, we are revising our guidance for 2011 upward. In doing so, we believe that we have appropriately balanced our improving growth prospects with the work we have to do and the challenges we must overcome to achieve the new targets.”

“The first quarter of 2011 was the Group’s best quarter to date in terms of Revenue and EBITDA,” said Stefano Bortoli, CFO of Lottomatica Group. “Given the strong performance of Machine Gaming and Lotto in Italy in the quarter, we are raising our full-year Revenue and EBITDA estimates to €2.8 – €2.9 billion, and €890 – €910 million, respectively, and also improving our targeted Net Financial Position.”

For the first quarter ended March 31, revenues were up 28.9% to €702.1 million, compared to €544.6 million in the first quarter of 2010. Service revenue grew 29.9% to €675.5 million and product sales grew 7.5% to €26.6 million. Revenue growth was driven by Machine Gaming in Italy, the performance of Italian Lotto, higher instant-ticket sales, and the increased percentage fee for the Scratch & Win concession.

EBITDA was €255.9 million in the first quarter of 2011, up 29.7% compared to €197.3 million in the same period last year. The increase in EBITDA was primarily driven by the performance of Lotto and 10eLotto, more favourable late numbers patterns, improved sports betting payouts, and higher revenues and profits from Machine Gaming in Italy. Machine Gaming in Italy benefited from the newly-installed VLTs.

Operating income was €152.7 million in the first quarter of 2011, compared to €118.1 million in the same period last year, up 29.3%, despite higher amortization in the first quarter of 2011 related to the €800 million Scratch & Win concession fee.
Interest expense was in line with the first quarter of 2010 at €41.7 million.

Non-cash foreign exchange losses of €35.0 million were principally associated with Euro denominated debt on GTECH’s balance sheet.Net income attributable to the parent was €21.9 million.

Diluted earnings per share (EPS) were €0.13 in the quarter, versus €0.18 in the first quarter last year. On a pro-forma basis, excluding non-cash foreign exchange losses associated with the euro-denominated debt on GTECH’s balance sheet, and non-cash purchase accounting associated with the GTECH acquisition, diluted EPS was €0.31 versus €0.24 last year.
Net cash flows from Operating Activities were €205.5 million in the first quarter of 2011, compared to €143.3 million in the first quarter of 2010.

Capital expenditures totalled €107.0 million, including capital additions for systems, equipment, and other assets principally related to spending in Italy for Gaming Solutions and Lotto, as well as lottery system implementations in Texas, Illinois, and Poland.
At March 31, 2011, Consolidated Shareholders’ Equity totalled €2.21 billion. Lottomatica Group had a Net Financial Position (NFP) of €2.93 billion, compared to €2.98 billion as of December 31, 2010.

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