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Lottomatica Shares Jump Over 7% on Boosted Earnings Outlook for Cirsa Acquisition
Shares of Lottomatica Group SpA surged more than 7% on Monday after the gambling operator provided an upbeat forecast for its acquisition of Spanish casino company Cirsa. Lottomatica now expects the deal to generate an incremental €200 million to €300 million in online earnings before interest, tax, depreciation, and amortization (EBITDA) on a run-rate basis by the third year after the transaction closes.
Updated Financial Guidance
In a statement on September 7, Lottomatica clarified the potential financial upside of the Cirsa acquisition, which was first announced on September 2. The company said the new projection for online earnings is not included in the synergies that were previously announced as part of the transaction.
The company stated it was providing the additional detail "in response to the significant interest received from investors and analysts in recent days." The updated guidance signals a more substantial long-term earnings potential from the merger than initially communicated.
AdStrategic Rationale
Lottomatica attributed the significant earnings potential to a combination of strategic strengths. The company plans to leverage its proprietary technology, product development capabilities, and omnichannel expertise across Cirsa's established operations.
This strategy aims to capitalize on Cirsa's significant market footprint, large customer base, and strong local presence in high-growth markets to accelerate the combined entity's online business. The forecast underscores management's confidence in integrating Cirsa's assets to drive substantial growth in the digital gaming segment.
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