International Game Technology PLC (IGT) reported its financial results for the third quarter ending Sept. 30.
Reflecting on Q3, Max Chiara, CFO of IGT, said the team is pleased with the financial results delivered, which include margin expansion and a strong cash flow. Chiara commented in an IGT news release:
“Our financial position is solid with net debt leverage at a historical low point and already comfortably within our long-term target range, which coupled with no meaningful near-term debt maturities and access to significant liquidity, greatly enhances our balance sheet and creates additional financial flexibility.”
Overview of IGT’s Q3 2023 results
According to the company’s statement, IGT generated $1.06 billion in revenue, consistent with IGT’s Q2 2023, Q1, and the previous year. Of the third quarter revenue:
- Global lottery generated $601 million, a 4% year-over-year decrease
- Global gaming made $409 million, an 8% annual increase
- PlayDigital brought in $55 million of revenue, which remained flat YoY, with only a 1% yearly increase
IGT’s total operating income reached $239 million in Q3 2023, representing a 13% yearly increase. Of that number:
- Global lottery generated $206 million in operating income, which was down 2% year-over-year
- Global gaming operating income was $93 million, a 42% increase from last year
- PlayDigital brought in $16m, 32% up from the previous year
Vince Sadusky, CEO of IGT, said: “The strength of our leadership positions across Global Lottery, Global Gaming, and PlayDigital is evident in our third quarter and year-to-date results. Excellent momentum in key performance indicators is driving revenue growth and even stronger profit expansion.
With a compelling pipeline of innovative products and solutions showcased at recent tradeshows, I am confident we can achieve our near and medium-term goals as we focus on unlocking the intrinsic value of IGT’s market-leading assets.”
Furthermore, IGT’s total Adjusted EBITDA (net income earnings before interest, taxes, depreciation and amortization) of $433 million increased 8% from Q3 2022’s $402 million.
In Q4, IGT expects to reach $1.1 billion in revenue, with Global Lottery revenue up versus the prior-year period. The company also expects its Global Gaming and PlayDigital revenue to align with the prior year.
As for the full year, the gaming company expects revenue to be $4.3 billion, with an operating income margin of nearly 23%.
IGT closed several deals in Q3
During the conference call, the company emphasized key highlights throughout Q3 2023.
As part of its business strategy, IGT closed several strategic deals, which include:
- A seven-year lottery contract extension as a primary technology provider to the California Lottery through October 2033
- Ten-year contract extensions as retail and iLottery systems partner to the Kentucky Lottery Corporation through July 2036
- Launching the Caesars Cleopatra game for Caesars Palace Online Casino
- Expanding PlaySports technology footprint, including IGT’s trading advisory services, with deployment at Palace Casino Resort in Mississippi and sports betting platform deal with Wisconsin’s St. Croix Casino