Lottomatica: 2Q: Another sound quarter; slight Online beat and solid cash conversion

Research evidence excerpt

Lottomatica: 2Q: Another sound quarter; slight Online beat and solid cash conversion

J P M O R G A N Europe Equity Research

28 July 2026

Lottomatica Overweight

LTMC.MI, LTMC IM

2Q: Another sound quarter; slight Online beat and solid Price (27 Jul 26):€25.12

cash conversion Price Target (Dec-27):€33.50

Our Take: Another sound quarter from Lottomatica this morning. Operator- European Leisure, Hotels & Gaming

ACfriendly sports results in May–June (including the opening weeks of the World Estelle Weingrod

Cup) helped to mitigate April’s weaker sports hold. Key highlights include: (i) 2% (44-20) 7742-8502

EBITDA beat in Q2, supported by healthy underlying revenue trends and strong estelle.weingrod@jpmorgan.com

online margin momentum through the quarter — Online EBITDA was +25% y/y J.P. Morgan Securities plc

at normalized payout (2% ahead of JPMe on a reported basis); and (ii) further y/y Karan Puri

market share gains across all Online products and segments (iGaming/iSports ~ (44-20) 7742-8342

karan.puri@jpmorgan.com

+1ppt higher on avg vs Q2 25), with PWO (total sports) now exceeding pre J.P. Morgan Securities plc

migration level. Cash generation and leverage also remained in a good place, with

Avni Garg

EBITDA conversion of ~82.5%. Mgmt reiterated FY guidance, implying no (91-22) 6157-3431

material change to consensus estimates overall. On comps, we would flag easier avni.garg@jpmchase.com

sports comps in H2 (September, October and December). J.P. Morgan India Private Limited

• Noteworthy Areas: 1) NGR growth for Q2 was reported at +6.4% y/y, in-line Specialist Sales contact details:

with both JPMe and consensus (JPMe +6.6%/company compiled cons. Olivia Petronilho - Specialist Sales -

+6.1%), with operator friendly sports results in May-June offset by an European Consumer