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International Game Technology (NYSE: IGT) started the year with a first-quarter revenue of $1.07 billion due to growth in its global lottery business. While the gaming and digital business was 7% lower than the first quarter of last year, lottery revenue was 6% higher.
Despite the small dip in gaming and digital, the division performed stronger than expected. IGT reported a 24% operating income margin.
The company expects a better year with consistent revenue, higher margins, and a merger on the way. In a press release IGT’s CEO Vince Sadusky said the company is upgrading its revenue outlook for the year:
“(W)e are upgrading our full-year 2024 revenue and profit goals, which reflect broad-based momentum across key performance indicators in the balance of the year. We continue to make progress on separating Global Lottery from Gaming & Digital and preparing for the proposed transaction with Everi.”
Similar to Everi’s Q1 2024 earnings release, IGT says the merger should close in late 2024 or early 2025. When the deal is completed, IGT’s gaming & digital division will be combined with Everi. IGT will continue to operate its lottery division separately.
Key takeaways
- Quarterly revenue was flat with mixed results from the lottery and gaming divisions.
- Lottery revenue was higher than a year ago.
- IGT won multiple industry awards for lottery products during the quarter.
- iGaming revenue was up and new online slots are coming soon.
Lottery division leads IGT’s first-quarter revenue results in 2024
IGT’s global lottery revenue during the first quarter was $661 million due to significantly higher product sales. This was 6% greater than the $624 million a year ago.
This was the sixth consecutive quarter with year-over-year revenue growth for IGT’s lottery division.
IGT’s global lottery division also had an operating income of $258 million. This is up 8% compared to $240 million in the prior year.
Global iLottery sales were led by up 20% and by growth in the US.
During the first quarter, IGT earned ICE London 2024 awards that included “Lottery Product of the Year.” IGT’s multidimensional omnichannel games won the lottery product of the year at the International Gaming Awards in February.
Another benchmark for IGT during the quarter was coming to a licensing agreement with the Maryland Lottery for its Cash Pop game. The company touted strong lottery sales in Georgia and New Jersey.
IGT will have new iLottery and retail games throughout the year. While Cash Pop continues to grow in popularity, the company is seeing a resurgence in games with multi-state jackpots.
iGaming showed strong results for IGT’s Q1
IGT’s digital business is still growing and is grouped with overall gaming revenue. Gaming and digital revenue for the first quarter fell 7% from $436 million to $406 million.
Operating income for the division only dipped 3% to $81 million from $83 million during the first quarter last year.
This division will be spun off into a new company when the merger with Everi closes later this year or early next year.
While the earnings report doesn’t separate online and retail, Sandusky offered some insight into iGaming revenue during IGT’s Q1 2024 earnings call. He summarized the online casino business for the quarter saying:
“iGaming revenue grew 10% in the quarter with GGR reaching an all-time high in March driven by strong IGT game performance in the US.”
He noted the success of the Wheel of Fortune Triple Extreme Spin with BetMGM and Fort Knox Cats at the FanDuel Casino. The company will roll out more online slots later this year with its Cash Eruption, Cleopatra, and Fortune Coin brands.
