Lottomatica Prepares for IPO, Targets $467M

Apollo Global, an American global private equity firm, has confirmed its IPO plans for the Lottomatica division, saying that it plans to have it go public on the Euronext Milan exchange by the end of April. The IPO is expected to help Lottomatica reduce its debt.

According to the announcement, the IPO will consist of both new and existing shares, although the exact number to be sold is still undetermined. Gross proceeds from the new shares, the Italian operator hopes, will reach $467 million.

Lottomatica’s initial public offering was reportedly approved by shareholders in February, following earlier rumors that the company is set to go public. In January, rumors claimed that the company will be looking to raise at least $1 billion through its initial public offering.

However, at that time, the Italian company was still evaluating the market conditions. As a result, the IPO plan was not officialized until later.

Lottomatica is a sports betting operator that offers retail and online betting in Italy. The company has been continuously growing its local presence, improving profitability across the board.

It reported adjusted core profits of around $170 million in Q1, which translates into a year-on-year increase of 15-16%. Meanwhile, Lottomatica’s revenue rose by 21% YOY to $308 million.

The company hopes to deliver mid-point core profits of $615 million. Lottomatica’s guidance for 2023, on the other hand, expects the Italian operator to earn $1.73 million and $1.83 billion.

The IPO Might Be Coming at the Perfect Time

Experts say that the IPO may be coming at just the right time, considering the IPO drought in Europe. In 2022, high interest rates and increased inflation discouraged investors from taking daring actions. However, this pent-up demand for listings might work to Lottomatica’s benefit, helping it achieve and surpass its IPO targets.

Although it is yet to be seen if this projection will come true, the current conditions are something that Lottomatica’s leadership has certainly considered.

Last year, the Italian operator strengthened its business through key deals with notable B2B companies. For example, the company was able to secure an exclusive payment deal with the innovative payment provider Nuvei and an iPoker deal with Playtech.

In November 2022, the company also finalized the acquisition of Betflag, an Italian gaming company.