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IGT Reports Strong Q1 Earnings, Reaffirms 2023 Outlook

Written By Katarina Vojvodic on May 11, 2023 - Last Updated on October 9, 2023
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International Game Technology, better known as IGT, just revealed financial results for the first quarter ending Mar. 31, 2023. The company which serves several major US online casino / gambling companies kept pace with its previous standard.

In its first three months of 2023, the gaming company has generated revenue of $1.06 billion, going slightly up by 0.8% year-over-year.

Vince Sadusky, CEO of IGT, said via the company’s press release that their first quarter results exceeded expectations and put the company “firmly on track” to achieve its full-year outlook. Sadusky said:

“Compelling innovation and sustained strength in customer and player demand are fueling momentum across our global lottery, global gaming, and PlayDigital segments. This is clear in the excellent key performance indicators achieved in the quarter. We believe the focused execution of our strategy to grow, innovate, and optimize should create significant value as we progress toward our 2025 goals.”

IGT’s financial highlights

Just like during the previous quarter, IGT exceeded its forecast for the first three months of 2023.

IGT’s consolidated revenue was $1.06 billion, a 1% or 3% increase at constant currency. The figure compares to $1.05 billion in the prior year.

The company’s global lottery revenue of $624 million was down 8% year-over-year. That’s mainly due to the sale of Italy’s commercial services business.

The company’s global gaming revenue segment reached $381 million. That’s mostly thanks to a demand for IGT’s products that drove “double-digit increases in both service and product sale revenue streams.” Meanwhile, IGT’s revenue for PlayDigital surpassed $55 million, primarily driven by the online casino and an iSoftBet acquisition. Both global gaming and PlayDigital segments saw a revenue increase of 17% year-over-year.

EBITDA, net income (earnings) before interest, taxes, depreciation, and amortization, was $449 million. The number compares to $433 million in the prior-year period and is a rise of 3.7%. Adjusted EBITDA margin expands 110 basis points to 42.3% on higher global lottery and global gaming margins.

IGT’s future expectations

Looking ahead to the second quarter of the year, IGT expects:

  • Revenue of approximately $1.0 billion
  • Operating income margin of 22% – 24%

As for the entire year, IGT estimates:

  • Revenue in the range of $4.1 billion to $4.3 billion
  • Operating income margin of 21% to 23%
  • Cash from operations between $900 million and $1,000 million
  • Capital expenditures of $400 million to $450 million

According to a PRNewswire press release, Max Chiara, CFO of IGT said:

“The strong start to the year includes significant cash flow generation and further improvement in our credit profile. The continued improvement in net debt leverage reinforces our conviction in accomplishing the lower end of the 2.5x – 3.5x target range by 2025.

We are focused on enhancing our financial flexibility, being operationally agile, and remaining disciplined with costs, all of which should enable the achievement of our 2025 margin and cash flow targets even in the current uncertain macroeconomic context.”

Photo by PlayUSA
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Katarina Vojvodic

Katarina Vojvodic is a lead writer for PlayUSA who lives in Toronto. Vojvodic provides coverage of the US gambling industry with a focus on US online casinos. Previously, she covered Ontario’s online gambling industry for Vojvodic holds a master’s degree in journalism from the University of Belgrade. Outside working hours, she can be found near the water with her husband and their two kids.

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