Lottomatica points to “strong pipeline” for bolt-ons as SKS365 addition praised
CEO Guglielmo Angelozzi pleased with “very strong team” at newly acquired business as he confirms plans are in the offing to add more companies to corporate structure
Lottomatica CEO Guglielmo Angelozzi has backed the addition of SKS365 to drive further growth for the Italian firm while highlight other potential bolt-on opportunities.
Speaking on the Milan-listed firm’s Q1 results presentation, Angelozzi provided a positive outlook on the SKS365 team despite the disruption placed upon the company prior to the acquisition.
The deal, which cost €639m, was first announced last November and has already seen SKS365’s CEO Alexander Martin leave 24 hours after the purchase was finalised last week.
As detailed in Lottomatica’s quarterly results, the firm expects SKS365 to return €80m in adjusted EBITDA this year along with adding 7.2% more online market share in Italy thanks to the acquisition.
When asked how the absorption of SKS365 had gone in the short time since the transaction completed, Angelozzi was effusive in his praise for the business.
The CEO said: “There were lots of restrictions during the interim phase because of antitrust reasons. We have closed last week. We’ve already deep dived on several topics with the team. It’s a very strong team. In every aspect, we found a very committed, knowledgeable and driven group of people.
“They’ve been busy in the last couple of years or so in the exit process, which is always a bit disruptive on the growth opportunities that you may take advantage of.
“We like the asset a lot. We confirm our strong view on the brand, on the properties, on the team, on the people and we like their attitude,” he added.
Angelozzi confirmed further updates on the embedding process would be provided in Q2 as he noted the teams are beginning to merge with a new organisational structure in place.
Elsewhere, management were pressed on further acquisition opportunities given Lottomatica’s CapEx stands at €52m and its operating cash flow at €110m, as of 31 March.
Angelozzi confirmed the group has a “very strong pipeline” of bolt-ons which he said was a key strategy for the business.
The CEO added that potential changes in Italy relating to a hike in the licence fee towards €7m could result in further consolidation of the market.
He said: “Is there any impact coming from the expectation of the new framework of the market? Yes, there is. We are starting to see that. There is a very solid interest for our proposition to the market.”
Lottomatica’s Q1 results saw the firm’s revenue increase 4% year-on-year to €440.1m, although adjusted EBITDA dropped 4% in the same period.