De Agostini

Key financial and operating performance indicators for the Lottomatica Group are shown in the table below.

Revenues

In 2009, total revenues were EUR 2,177 million, compared with EUR 2,059 million in 2008. The increase is primarily due to growth in gaming machines, fixed-odds betting and the Interactive business in Italy.

Lottomatica – Italian operations (EUR 1,176 million)

In 2009, the group's Italian operations posted excellent results, generating revenues of EUR 1,176 million, an increase of around 15% on the 2008 figure of EUR 1,023 million.

GTECH Lotteries (EUR 781 million)

The consolidated revenues reported for the years ending December 31, 2009 and December 31, 2008 include the revenues generated by GTECH below.

Service revenues generated by US lotteries rose by 5.5%, chiefly due to the weakening of the euro against the dollar. Revenues from the sale of international lottery products fell 67.3%, since the 2008 base figure included the sale of a centralised lottery system in Finland, 28,500 terminals in the UK and a centralised system in Saxony, Germany.

EBITDA/EBIT

At December 31, 2009, EBITDA was around EUR 784 million, compared with EUR 756 million in 2008. This increase of 3.7% is largely attributable to growth in Italian operations.

In contrast, the results reported by GTECH Lotteries, Gaming Solutions and Interactive Services were lower than those for 2008 by about EUR 13 million, mainly because margins are being squeezed following the renewal of a number of contracts, and as a result of the excellent performance of product sales in 2008. However, this decrease was partially offset by the increase in same-store sales and the improved results of the Gaming Solutions business.

In 2009, EBIT was EUR 353 million, compared with the figure of EUR 342 million reported in 2008. The figure for 2009 reflects the negative impact of impairment charges totalling EUR 74 million, of which EUR 63 million related to GTECH G2 and EUR 11 million to other assets and businesses.

Net profit

Net profit attributable to the group for the year ending December 31, 2009 totalled approximately EUR 68 million (a decrease of around EUR 26 million compared with 2008), and reflected:

• interest payable of EUR 151.5 million – interest payable fell by EUR 26 million compared with 2008, chiefly due to the reduction in the interest rate on variable-rate debt, which was partially offset by the weakening of the euro against the US dollar
• exchange rate losses of EUR 15.8 million
• taxes for the year of EUR 75.8 million – an increase of EUR 47.5 million versus 2008. The group’s effective tax rate for the year ending December 31, 2009 was 40.3% in 2009, compared with 25.6% in the previous year. The increase is primarily the result of the impairment of certain investments, the repayment of the group's intercompany debt facility and the losses suffered by some foreign subsidiaries (without any associated tax benefits)
• minority interests totalling EUR 44.2 million – in line with 2008, these relate to scratch cards, operated by Consorzio Lotterie Nazionali, for which Lottomatica is the sub-holding company with a 63% stake
• interest receivable of EUR 3.5 million
• other changes of EUR 16.7 million

Net Financial Position

At December 31, 2009, the Lottomatica Group recorded Net Financial Position negative for EUR 2,417 million. The improvement of EUR 277 million compared with EUR 2,694 million at the end of 2008 was chiefly due to the combined effect of: (i) EBITDA of EUR 784 million, (ii) capital investment of around EUR 425 million, (iii) capital increase, less expenses, of EUR 285 million, (iv) dividend payments of EUR 101 million, (v) interest of EUR 147 million, (vi) taxes paid of EUR 145 million, (vii) the negative impact of the depreciation of the euro against the dollar on US dollar-denominated debt, amounting to EUR 43 million and (viii) other positive effects of EUR 69 million.