Lottomatica sees decline in online wagers
Overall revenues down following a dip in the company's core Italian operations.
Lottomatica’s online wagers suffered a 8.9% year-on-year decrease as the operator recorded disappointing third quarter results primarily due to a decline in its core Italian operations.
Online wagers totalled 485.4m in comparison to 533m in the corresponding period last year, although overall revenues only dropped 0.1% year-on-year from 740.9m to 740.2m. The decrease was attributed to lower Lotto wagers, higher sports betting payouts and higher taxation on video lottery terminals.
However, the declines were offset by the success of its international businesses, as GTECH Lottery’s revenue increased 15.4% compared to Q3 2011, from 226.3m to 261.1m due to growth in instant ticket sales, while SPIELO International’s Q3 figures rose 25.6% year-on-year to 82.7m thanks to higher product sales in Canada and Sweden.
SPIELO International and GTECH G2 were merged last October to make up the new gaming division of the Lottomatica Group, and provide web-based, player-focused games, products and services.
Lottomatica Group CEO Marco Sala said of the results: “We are encouraged by the continued growth and positive developments in our International business. Despite a difficult local economy, the core of our business in Italy is performing to our expectations. Private manager and operator opportunities are accelerating. Our successful private manager operation in Illinois and our recent win in Indiana position us well for the future.”
Northstar, a joint venture created by Lottomatica subsidiary GTECH Corporation and Scientific Games in 2010, fought off stiff competition for a lucrative 10-year contract with the Illinois Lottery from UK lottery giant Camelot by predicting higher profits. However, in its first year, the joint venture missed its proposed targets by $50m.