Italy's Lottomatica reports higher Q1 results, starts selling bonds

MILAN (Reuters) - Newly listed Lottomatica reported higher net profit and revenues in the first quarter as it confirmed its guidance for 2023, the Italian gambling firm said on Tuesday.

Net profit in the first three months of the year came in at 46.4 million euros ($51.1 million), compared with 34.6 million a year earlier, while revenues rose to 424.8 million euros from 355.7 million.

Lottomatica reiterated its forecasts for 2023 of revenues of between 1.57-1.7 billion euros, with adjusted earnings before interests, taxes, depreciation and amortization (EBITDA) are seen in a range of 550-570 million euros.

The gambling company on Tuesday started selling 1.115 billion euros in bonds due 2028, according to a lead memo seen by Reuters.

Price on the senior secured fixed rate bond is guided in the mid 7% area while the senior secured floating rate bond price is guided at 425-450 basis points (bps) over Euribor and offered at 98-98.5 cents on the euro, the memo said.

Proceeds from the new bonds will be used to fund the redemption of notes due 2025 and pay costs related to its recent listing, Europe's largest IPO so far this year.

Lottomatica shares traded at around 8.54 euros at 1300 GMT on Tuesday, down from their price of 9 euros in this month's IPO. ($1 = 0.9084 euros)

(Reporting by Cristina Carlevaro in Milan and Chiara Elisei in London, editing by Federico Maccioni and Keith Weir)