The title flies Lottomatica at Piazza Affari after the company announced some news this morning details of his operation purchase of Spanish rival Cirsa, announced last week, causing the stock to collapse. The betting company clarified this morning that it expects a concrete opportunity to leverage its technology, on product capabilities and proven omnichannel experience and consequently estimates that it will be able to achieve, within the third year from the closing of the operation, a Incremental online EBITDA The transaction's cash flow is expected to be between €200 million and €300 million. This amount was not included in the previously announced cash flow synergies of €115 million per year.
Lo last September 2th The Italian group announced the acquisition of its Spanish rival Cirsa Enterprises in a transaction valued at approximately €2,8 billion, creating one of the world's largest operators in the gaming and sports betting sector. At the time, the two companies said that the transaction, based entirely on a share swap, would result in the creation of a new entity that will register a Ebitda (earnings before interest, taxes, depreciation, and amortization) adjusted pro forma by approximately 2 billion euros. With this morning's additional information, theEBITDA could rise to 2,2-2,3 billion euros.
Le Lottomatica shares By late morning, the stock price on the Milan Stock Exchange had risen 7,83% to 26,17 euros, rising above the level before the acquisition announcement (24,96 euros at the close on September 1st), from which it had subsequently plummeted to 22,85 euros. Despite the post-announcement plunge, the stock is still up 17,5% since the beginning of the year. Cirsa shares listed in Madrid gained nearly 7% this morning to 18,46 euros.
The strong contribution expected from online
Le incremental synergies indicated this morning are mainly driven by the online technology and from the presence omnichannel of Lottomatica, with Cirsa's customer base and local presence in the fastest-growing markets, supporting greater margins and cash generation. Already during the conference call announcing the transaction, management had indicated theonline as a potential additional lever for value creation, without, however, quantifying its impact. Cirsa's online business is considered to be at a similar stage of development to that of Lottomatica a few years ago, suggesting significant potential for further value creation for the combined group. Including the announced cost synergies, management expects the transaction to be double-digit accretive in terms of EPS by 2028.
The new entity will be listed in Italy and Spain (maintaining the Lottomatica name on both lists) and will have a dominant position in the two main gaming markets of Southern Europe, Italy and Spain, and a significant presence in Latin America – especially in Peru and Paraguay – and in other high-growth countries.
The major competitor Lottomatica is the Irish company listed in New York Flutter entertainment, which in Italy operates with brands of the calibre of Sisal, Snai, and PokerStars, a giant that estimates revenues of approximately 17,9 billion dollars and an adjusted EBITDA of approximately 2,66 billion in 2026 and which recorded a better-than-expected second quarter thanks to the performance of the Southern Europe & Africa region.
