UPDATE 2-Lottomatica to issue bond, results meet fcasts

* Board approves bond issue for up to 750 mln euros

* Bond to be 5-7 yrs, sees 6 pct "all-in cost" -CFO

* Nine-months EBITDA 596 mln euros, meets forecasts

* Shares close up 0.27 percent

(Adds bonds, guidance details, shares)

MILAN, Nov 11 (Reuters) - The board of Italy's Lottomatica SpA's (LTO.MI), one of the world's largest gaming operators, approved a bond issue for up to 750 million euros ($1.12 billion) as it posted nine-month results which met forecasts on Wednesday.

Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 4 percent to 596 million euros, in line with expectations for 595 million euros, and sales of 1.592 billion euros, up 13.6 percent, the company said. [ID:nLA700214]

"After the recent announcement of a capital increase to finance growth linked to new opportunities offered by the Italian market, we will strengthen also our financial structure with the 750 million euros bond," its CFO Stefano Bortoli said.

Last month, Lottomatica raised 350 million euros via an exchangeable bond to fund a new concession for scratch cards from June 2010 and to invest in video lottery terminals.

"The bond will allow for refinancing of existing debt and diversify further funding sources and lengthen average maturity of our debt," Bortoli said in the statement.

At the end of September net debt was 2.69 billion euros, slightly better than the 2.71 billion euros at end of 2008.

During a conference call, Bortoli said the bond, subject to market conditions, will be for 5-7 years, have "a possible all-in cost of 6 percent", and the intention is to issue it before a March deadline set by the board.

The Lottomatica bond comes amid a flurry of Italian corporate bonds including Tuesday's vehicle group Fiat SpA's (FIA.MI) junk-rated 1.5 billion euros five-year bond which carries a 6.875 percent coupon.

Lottomatica is rated BBB- by Standard & Poors giving it an investment grade.

Lottomatica's gaming sector rival Snai SpA (SNAI.MI) has declined to comment on a report in Il Mondo weekly publication last Friday that its board meeting this Friday will approve a 350 million euro unrated bond issue.

During the conference call, an executive said the company is confident of reaching its full year guidance issued in April and will not be at the bottom of the guidance range.

Lottomatica is guiding for full year EBITDA of 780-800 million euros, up from 2008's 756 million euros.

On expansion, Lottomatica is looking to U.S. state of Illinois, Australian state of New South Wales where there is a privatisation, and France for interactive gaming licences, the company.

Greece and Turkey also offer opportunities, Chief Executive Marco Sala said.

In Italy, where terms of a government scratch-card tender are being challenged by unlisted rival Sisal, Lottomatica sees "full visibility" on the concession it won once a court rules on the challenge within 10 days, he said.

Lottomatica shares closed up 0.27 percent at 14.75 euros.

(Reporting by Nigel Tutt; editing by Elaine Hardcastle)

($1=.6674 Euro)