IZI Group (stylised IZIGROUP)'s long-stated intention to expands its operations internationally have taken off, with the company setting up an Austrian subsidiary as part of what it described as "the next major phase of its growth strategy."

The National Lottery and Dragonara Casino operator made the announcement in its interim financial report, where it reported "remarkable" growth in profitability, with EBITDA increasing by 35 per cent and profit before tax by 156 per cent.

The new Austrian subsidiary, IZI Entertainment GmbH, has been given a €4 million equity injection, financed by a bridge loan from BOV.

The group also announced a new bingo and HHR (historical horse racing) establishment in Victoria, Gozo. This venture is also being financed through a €1 million loan facility from BOV.

These developments were disclosed in the company’s announcement of its unaudited interim financial statements published on 27th January.

For the six-month period from July to December 2025, the group reported:

• Turnover of €561 million, up 25 per cent year-on-year
• Gaming revenues of €53.9 million, an increase of €8.6 million (19 per cent)
• EBITDA of €18.1 million, up 35 per cent from the comparable period
• Profit before tax of €6.9 million, up 156 per cent from €2.7 million in the same period last year

Player winnings increased by €104 million compared to the same period in 2024, reflecting higher levels of activity across the Group’s operations.

The interim report notes that national lottery operations accounted for around 50 per cent of EBITDA, with Dragonara Casino contributing 30 per cent, while interactive operations continued to expand.

The group also reported positive operating cash flows of €19.2 million for the period, describing this as a solid financial foundation for the coming months. Total assets stood at €265.9 million as at 31st December 2025.

The interim results reinforce the rationale behind IZI’s earlier announcement, published on 19th January, that it is seeking to return to the market with a second bond issue of up to €30 million, redeemable in 2036, subject to MFSA approval.

The proposed bond issue is intended to support the next phase of the group’s international expansion, building on what the board described as strong operational and financial foundations established in recent years.

The report states that the group is now “well positioned to realise increased returns on these investments, especially in the context of planned expansion into international markets”.

IZI expects to surpass its full-year financial objectives for FY2026, with projected turnover set to exceed €1 billion and gross gaming revenues expected to pass the €100 million mark.

The board described the period as one of unprecedented growth and said the group will continue building on this momentum through further efficiency gains, technology adoption, and international expansion, particularly in markets offering favourable regulatory environments and strong demand fundamentals.