International Game Technology PLC (NYSE: IGT) announced its financial results for the third quarter of 2024, a period marked by the reclassification of its Gaming & Digital business as discontinued operations. This shift follows the planned sale of its Gaming & Digital assets to affiliates of Apollo Global Management, Inc., a transaction expected to conclude by Q3 2025. IGT reported revenue of $587 million for Q3 2024, a slight decrease from the $601 million reported in the same quarter last year, with results reflecting strong lottery operations and growth in both Italy and U.S. instant ticket markets.
Operating income for the quarter was $110 million, impacted by a $38 million restructuring charge as part of the OPtiMa 3.0 initiative—a multi-year program aimed at optimizing administrative and operational activities. Adjusted EBITDA stood at $264 million, with an Adjusted EBITDA margin of 44.9%, underscoring the profitability of IGT’s continuing lottery operations.
Year-to-date cash from operations reached $724 million, with $489 million generated by continuing operations, representing over 85% of consolidated free cash flow. This financial strength supports the company’s strategic focus as it transitions to a lottery-focused model.
The third quarter included notable developments across IGT’s operations. In the United States, improved trends in instant ticket and draw games were partly offset by a decrease in other revenue due to fewer multi-state jackpot activities compared to the prior year. In Italy, same-store sales rose by 2.7%, contributing to steady revenue in the region. Additionally, other service revenues increased in Europe, driven by non-wager-based contracts.
IGT also secured significant contracts this quarter. The North Carolina Education Lottery extended its facilities management agreement for an additional 10 years, and Portugal’s national lottery awarded IGT a three-year contract for primary instant ticket printing following a competitive procurement process. In France, IGT strengthened its relationship with La Française des Jeux with a three-year extension to its instant ticket printing contract.
From a capital management perspective, IGT issued €500 million in 4.25% Senior Secured Notes due 2030 and subsequently called $500 million of 6.5% Notes due in 2025. This financial maneuver supports the company’s focus on lowering interest expenses and stabilizing its debt profile.
Other key figures include a decrease in net cash provided by operating activities to $173 million from $226 million in Q3 2023, and a net debt level of $5.16 billion. As part of its restructuring, IGT incurred a $38 million restructuring charge related to reducing its global workforce by 3%, aligning with projected annualized cost savings of $40 million by the end of 2026.
Looking forward, IGT’s financial guidance for Q4 2024 anticipates revenue between $640 and $690 million and Adjusted EBITDA between $280 and $300 million. For the full year, IGT expects revenue in the range of $2.50 to $2.55 billion and Adjusted EBITDA between $1.16 and $1.18 billion. This outlook reflects the strategic shift as IGT transitions to a pure-play lottery company following the anticipated sale of its Gaming & Digital segment.
With robust liquidity totaling $1.9 billion, including $501 million in unrestricted cash and $1.4 billion in borrowing capacity, IGT is positioned to support ongoing initiatives and operational enhancements. The OPtiMa 3.0 program will continue to streamline costs and optimize operational efficiencies as IGT reshapes itself within the global iGaming landscape. The company’s Board of Directors declared a quarterly cash dividend of $0.20 per common share, payable on December 10, 2024, to shareholders of record as of November 26, 2024.
As IGT shifts focus toward its core lottery operations, the company aims to maintain momentum and navigate the restructuring phase while positioning itself for growth in its global lottery markets.
“Our third-quarter and year-to-date performance underscores the strength and resilience of our business model marked by our scale, attractive margin structure, and strong cash generation,” said Vince Sadusky, CEO of IGT. “Over the first nine months, we generated $1.9 billion in revenue, led by steady Italy growth and improved third quarter trends in the U.S. We are excited to build upon a solid foundation as we transform into a leaner, more focused global lottery pure play and capitalize on attractive industry dynamics.”
“Sustained cash flow generation in the first nine months was predominantly driven by continuing operations,” said Max Chiara, CFO of IGT. “The value of IGT is enhanced on a go-forward basis by a low pro forma leverage profile and by the launch of a cost optimization initiative as we look to right-size the organization while supporting long-term growth initiatives.”
