IGT Reports Q1 2023 Results with Revenue of US$1.06bn
International Game Technology PLC (“IGT”) (NYSE:IGT) announced its financial results for the first quarter ending on March 31, 2023. The company reported US$1.06 bn (£840 million/€970 million) in revenue, a 1% YoY increase, with Global Lottery same-store sales growth of 8% and double-digit revenue growth in Global Gaming and PlayDigital. Operating income margin was 24.1%, meeting the high end of the outlook range, with strong Global Gaming performance. Adjusted EBITDA reached $449 million, and the Adjusted EBITDA margin was 42.3%, among the highest levels in company history. Net debt leverage improved to 3.0x, the lowest level in the company’s history. IGT reaffirmed its full-year 2023 revenue and profit outlook.
Highlights include IGT’s Global Lottery same-store sales growth of 8%, with Italy up over 10% due to new games and portfolio optimization strategies, and elevated jackpot activity contributing to 7% growth in North America and Rest of the world. The company was also recognized with several awards, including “Lottery Product of the Year” at International Gaming Awards, “Casino Supplier of the Year” at Global Gaming Awards London, and “Best Slot Machine” and “Best Diversity and Inclusion Employer” at European Casino Awards. IGT’s Graton Resort & Casino partnership will enable cashless gaming through its award-winning Resort Wallet™ and IGTPay™ solutions. The company also extended sports betting momentum through strategic agreements with Betfred, Treasure Bay Casino and Hotel, UBetOhio, Santa Ana Star Casino Hotel, and BetSkybox, and recently signed a three-year contract extension in Rhode Island.
IGT’s revenue was comprised of $624 million in Global Lottery revenue, down 8% YoY due to the sale of Italy commercial services business, $381 million in Global Gaming revenue, up 17% YoY, and $55 million in PlayDigital revenue, up 17% YoY. The company’s operating income of $255 million increased 1% YoY, with Global Lottery operating income of $240 million, down 5% YoY due to the sale of Italy commercial services business, Global Gaming operating income of $69 million, up 34% YoY, and PlayDigital operating income of $14 million, up 9% YoY. IGT’s Adjusted EBITDA of $449 million was up 4% YoY, and the Adjusted EBITDA margin expanded 110 basis points to 42.3%.
“Our first quarter results exceeded expectations and put us firmly on track to achieve our full-year outlook,” said Vince Sadusky, CEO of IGT. “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.”
“The strong start to the year includes significant cash flow generation and further improvement in our credit profile,” added Max Chiara, CFO of IGT. “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.”