Lottomatica plans Euronext Milan IPO this month

The Italian operator hopes that the IPO will generate €425m (£376m/$467m), most of which will be used to finance debt.

It has not been confirmed how many existing and new shares will be put on the market by Apollo Global Management. The private equity giant struck a deal to acquire Lottomatica nearly two years ago.

Barclays, Deutsche Bank, Goldman Sachs, JP Morgan and UniCredit are acting as joint global coordinators and bookrunners on the flotation.

In a preliminary trading update for the first quarter of 2023, Lottomatica also said today (Friday) that its revenues will fall between €421m and €423m in the three months ended 31 March. This represents a year-on-year increase of between 19% and 20%.

A 40% increase in online revenues raised adjusted earnings before interest and deductions (EBITDA) to between €155m and €156m. This represents a 15-16% increase on a proforma basis, including the takeover of online casino and sports betting operator Betflag in November.

Lottomatica reiterated its full-year EBITDA expectations of between €550m and €570m, based on online EBITDA of at least €275m and turnover of between €1.57bn and €1.67bn.

Last month, Lottomatica reported a net profit of €79.3m for its 2022 financial year following a 72.8% increase in revenue.

Last year was the operator’s first full 12 months of operations as a standalone business after Apollo completed a deal to acquire the Lottomatica-branded B2C operations from IGT in June 2021.