Lottomatica Pay to play Credit Analysis

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Lottomatica Pay to play Credit Analysis

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Lottomatica

Pay to play

Credit Analysis

Valuation already reflects strong fundamental picture 24 June 2026

We refresh our views of Lottomatica post its May-26 refinancing. We add coverage of High Yield Credit

the €31s and €32s secureds at Marketweight. Both bonds trade near the mid-point of Italy

the Euro BB and BBB indices (YTW basis). We see these levels as appropriate and expect Gaming

trading levels to remain range-bound. We regard Lottomatica as a steady compounder Stephanie Vincent, CFA

with disciplined capital allocation and supported by a clearer regulatory backdrop for Research Analyst

gaming in Italy, mid-term. We expect credit ratings to reach Ba1/BB+ levels over the MLI+44 (UK)20 7996 1143

next 12-18 months, despite the shift to potentially more buybacks and/or bolt-on M&A. stephanie.a.vincent@bofa.com

We do not add coverage of the €30s, as they are trading to call. Conor Forde

Research Analyst

MLI (UK)

+44 20 7996 1054No near-term maturities, decent liquidity

conor.forde@bofa.com

We think Lottomatica has a long runway to deliver its strategy, as confirmed by the

positive outlook at S&P. In addition, new online gaming retail concessions are confirmed

(9 yrs.), and the company has no maturities until 2030. The runway is underpinned by LTMCIM: Lottomatica Group Spa

decent liquidity, consisting of a c. €450mn fully-undrawn Oct-30 RCF and c. €120mn of

cash. ADM: Agenzia delle Dogane e dei

Monopoli

Balance sheet under control, expect more bolt-on M&A

In our view, Lottomatica’s balance sheet is under control with reported net leverage at

2.3x, and its cost of debt at 4.9% (down c. 40bps YoY). We expect the company to

continue to be a consolidator in the Italian gaming market, through bolt-on M&A.