IGT Reports Q2 2023 Results: Strong Revenue and Profit Performance

International Game Technology PLC (“IGT”), a leading gaming and lottery solutions provider, has released its financial results for the second quarter of 2023. The company delivered a robust performance with revenue and operating income margin meeting the high end of the outlook range.

Q2 revenue of US$1.06 bn (£830 million/€960 million) increased 3% as reported, or 11% net of Italy commercial services sale, driven by strong key performance indicators and player demand trends. Operating income rose 10% to $251 million, with a 24% operating income margin, up 150 basis points on margin expansion across segments. Adjusted EBITDA increased 8% to $443 million, with an adjusted EBITDA margin of 42%, up 190 basis points.

IGT secured a 10-year brand licensing extension with Sony Pictures Television, granting exclusive rights to the Wheel of Fortune® brand across gaming, lottery, iGaming, and iLottery, as well as non-exclusive rights for distribution to free-to-play social casinos. The company won the “Sportsbook Supplier of the Year” award at the 2023 SBC Awards North America and the “Diversity and Inclusion” category at the 2023 Women in Gaming (WIG) Diversity & Employee Wellbeing Awards.

Consolidated revenue grew 3% to $1.06 bn, up from $1.02 bn in the prior year, and increased 11% net of the Italy commercial services sale in September 2022. Global Lottery revenue was $624 million, down 4% year-over-year, but rose 8% net of the Italy commercial services sale. Global Gaming revenue increased 13% to $373 million, with strong performance in the U.S. & Canada, higher average selling prices, and robust system sales. PlayDigital revenue increased 38% to $59 million, driven by strong player demand trends and contributions from the iSoftBet acquisition.

Operating income increased 10% to $251 million, with a 150 basis points expansion in operating income margin to 24%. Adjusted EBITDA increased 8% to $443 million, with a margin of 42%, up 190 basis points.

Total liquidity was $1.8 bn as of June 30, 2023, with $0.5 bn in unrestricted cash and $1.4 bn in additional borrowing capacity from undrawn credit facilities.

The company’s Board of Directors is exploring strategic alternatives for the Global Gaming and PlayDigital segments to unlock the full value of the portfolio. IGT declared a quarterly cash dividend of $0.20 per common share, with a payment date of August 29, 2023. Paid $220 million in final settlement of the DDI/Benson matter in Q2 2023, with an estimated after-tax impact of ~$170 million for the full year 2023.

For the third quarter, IGT expects revenue of approximately $1.0 bn and an operating income margin of 22% – 23%. For the full year, the company raises its revenue outlook to $4.2 bn – $4.3 bn and an operating income margin of ~23%. It also anticipates cash from operations of $900 million – $1,000 million and capital expenditures of $400 million – $450 million.

“Our second-quarter and first-half results reflect solid revenue and profit momentum across all business segments,” said Vince Sadusky, CEO of IGT. “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.”

“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,” said Max Chiara, CFO of IGT. “Based on our first-half results, we are confidently raising our full-year 2023 revenue and operating margin outlook.”

For the full earnings release and further details, please refer to the company’s official website.

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