International Game Technology (IGT) today revealed strong financial performance for the second quarter of 2023, during which several key figures demonstrated improvement.
The gaming company also reported growing full-year revenue and operating income margin, meeting the high end of the outlook range.
Vince Sadusky, CEO of IGT, said in the company’s press release:
“Our second-quarter and first-half results reflect solid revenue and profit momentum across all business segments. We achieved the high end of our outlook by executing key strategic initiatives and growing demand for IGT’s compelling content and solutions.
We are solidly on track to deliver on our 2025 objectives and remain focused on unlocking the intrinsic value of IGT’s market-leading businesses.”
IGT reports Q2 financial highlights
IGT exposed a 3% year-over-year increase in revenue to $1.06 billion, compared to Q2 2022’s $1.02 billion. The gaming company generated the same revenue in the first three months (Q1) of 2023.
The gaming company also emphasized:
- Global Lottery revenue of $624 million, which is a 4% year-over-year decrease
- Global gaming revenue of $373 million is a 13% increase from $330 million generated in the prior year
- PlayDigital revenue increased 38% to $59 million, up from $43 million in the prior year. It was primarily due to strong player demand trends and contributions from the iSoftBet acquisition
Operating income saw a 10% increase to $251 million, compared to 2022’s $228 million. The company also saw a 24% operating income margin, up 150 basis points on margin expansion across segments.
IGT’s total Adjusted EBITDA (net income earnings before interest, taxes, depreciation and amortization) were up 8% to $443 million, compared to $409 million set at the same time last year. Moreover, the adjusted EBITDA margin increased 190 basis points to 42% from 40%.
According to a PR Newswire press release, Max Chiara, CFO of IGT, concluded: “Our year-to-date performance showcases the strong cash generation of the business. We have a solid foundation to build from as we continue to invest in our growth objectives, further reduce debt, and return capital to shareholders.
Based on our first-half results, we are confidently raising our full-year 2023 revenue and operating margin outlook.”
IGT makes several strategic moves in June
IGT recently shared that it has retained firms to perform a strategic review of its operations. As announced via press release last month, IGT said it had retained:
- Deutsche Bank, Macquarie Capital and Mediobanca as financial advisors
- Sidley Austin and White & Case are serving as legal counsel.
At the time, IGT also stated: “No decision has been made regarding any alternative, there is no timeline for the review and there can be no assurance that the exploration of strategic alternatives will result in any transaction.”
As part of its business strategy, IGT closed several deals in June. The company signed a new 10-year licensing deal with Sony Pictures for exclusive Wheel of Fortune brand rights.
It also signed an eight-year contract with the Connecticut Lottery Corporation to help support the lottery’s business online.
IGT also introduced its latest video poker game Fortune X Poker, available at Yaamava’ Resort & Casino, at San Manuel in Highland, California.