Lottomatica Group S.p.A.: The Italian Job; Initiating with Credit-Hold

Research evidence excerpt

Lottomatica Group S.p.A.: The Italian Job; Initiating with Credit-Hold

Deutsche Bank

Research

Europe Company Date

17 June 2026

High Yield Corporates Lottomatica Group

Consumer Services, Leisure &

Gaming S.p.A.

The Italian Job; Initiating with Credit-

Hold

Ricardo Chinchilla

With this report, we initiate coverage of Lottomatica (LTMC). LTMC is the

Research Analyst

preeminent gaming operator in Italy. Lottomatica's business is organized into three +44-207-541-6172

reportable segments: Online; Sports Franchise; Gaming Franchise.

From a fundamental perspective, we assess this credit to possess an established

industry position in the Italian market, a robust business model, a solid operating

performance, a conservative financial profile, ample liquidity and limited near-term

debt maturities. However, these credit strengths are partially mitigated by

geographical concentration, regulatory risks, and a significant amount of

intangible assets and goodwill.

Figure 1: 2026 (E) Capitalization (Millions)

Amount Leverage Price YTW Spread Market Create

€447 million Revolver due 2028 €0 €100 €0

5.375% Secured Notes due 2030 500 102.6 4.6% 138 513

4.875% Secured Notes due 2031 1,100 101.9 4.4% 160 1,121

4.625% Secured Notes due 2032 765 100.7 4.5% 180 770

Total Debt €2,365 2.6x €2,404 2.6x

Cash 156 156

Net debt €2,209 2.4x €2,248 2.5x

Source : Bloomberg Finance LP and Deutsche Bank Research

We initiate coverage on LTMCIM 5.375% Secured due 2030 ($102.6, 4.0% YTW,

138bps STW), LTMCIM 4.875% Secured due 2031 ($101.9, 4.2% YTW, 160bps

STW), and LTMCIM 4.625% Secured due 2032 ($100.7, 4.5% YTW, 180bps STW)

with a Credit-Hold rating, as we believe the bonds are fairly valued at current levels.

Figure 2: Bond Pricing

Security Rating MYS/S&P Amount Bid YTW STW EBITDA'26 LEV'26 Y/LEV S/LEV