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IGT Reports 7% Growth In Revenue For 2023

Written By Katarina Vojvodic on March 15, 2024 - Last Updated on March 18, 2024
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In a recent earnings call, International Game Technology PLC (IGT) announced its financial results for the fourth quarter and full year ending Dec. 31, 2023.

IGT (NYSE: IGT) emphasized significant progress in operating income and EBITDA, with an improvement in operating margin.

The software supplier runs three main segments:

  • Global Lottery
  • Global Gaming
  • PlayDigital, its online casino content division

The company also revealed a strategic move as part of its plans to develop its Global Gaming and PlayDigital businesses and fuse them with Everi’s operations.

IGT confirms Everi merger

During the call, IGT announced it would become a pure-play lottery company and that its Global Gaming and PlayDigital divisions would be spun off and merged with Everi.

Under the terms of the agreement, Everi will take on IGT’s name. Likewise, IGT shareholders will own 54% of the combined business, while Everi stockholders will own the remaining 46%. The merger of the combined company is valued at $6.2 billion.

The transaction will close later this year or early 2025, subject to regulatory approvals. IGT’s lottery arm, which has yet to be named, will trade publicly on the New York Stock Exchange.

Vince Sadusky, CEO of IGT, commented in the IGT news release:

“We believe the recent determination to split the business and create separate lottery and gaming pure play companies, each with experienced management teams and simplified business models, better positions each company to service customers and create significant value for stakeholders.”

IGT emphasizes several Q4 2023 financial results

The company said its consolidated revenue of $1.1 billion increased 3% from Q4 2022, with Global Lottery revenue rising 7% and Global Gaming revenue being in line with the prior year.

IGT’s PlayDigital revenue decreased due to a one-time benefit related to jackpot expense, lower sports betting volumes, and hold rates in Rhode Island.

Operating income of $256 million was an 11% increase from Q4 2022’s $230 million. IGT’s operating income margin increased 22.7%, with growth across business segments:

  • Global Lottery operating income of $238 million rose 10% from the prior year’s $216 million
  • Global Gaming operating income reached $80 million, a 17% progress from $68 million in the prior year
  • PlayDigital’s operating income of $17 million was in line with the prior year
  • Corporate support and other expenses reached $79 million, which compares to $71 million in the prior year

Adjusted EBITDA was $454 million, a 9% increase from $419 million in the prior year, mainly driven by higher operating income and amortization.

Despite revenue growth, IGT’s 2023 net profit declined

IGT reported an annual decline in net profit for 2023, although it showed a 2% increase in revenue to $4.3 billion. In line with guidance, IGT’s group revenue was up from $4.2 billion in the prior year period.

IGT’s highlights reflecting last year include:

  • Record operating income of $1.0 billion, a 9% increase compared to $922 million in the prior-year period
  • Record Adjusted EBITDA of $1.8 billion, a 7% increase from $1.7 billion in 2022
  • Net interest expense decreased from $289 million in the prior-year period to $285 million

The company also highlighted several strategic contracts and other milestones achieved during 2023:

IGT achieves all of its financial goals in 2023

The expectations from 2024 look bright, while revenue growth hopes are based on organic growth and the anticipated merger.

As announced during IGT’s Q3 2023 earning call, the gaming company expected revenue to be $4.3 billion. IGT said it had achieved all its financial goals in 2023.

Max Chiara, the company’s CFO, said: “Robust cash generation funded incremental investments in the business and shareholder returns while driving leverage to historically low levels, putting IGT in a strong financial position as we enter 2024. This gives us confidence in further expanding our investment in the business to fund future growth.”

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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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