IGT reports increase in Q3 revenue to $1.07bn

International Game Technology (IGT) has reported a 0.9% year-on-year increase in revenue to $1.07bn in Q3, driven by growth within its Global Gaming business.

While Global Lottery remains the primary source of revenue for IGT, it was Global Gaming that led the way, with revenue for Global Lottery falling in Q3 while Global Gaming revenue was higher. PlayDigital revenue remained level year-on-year, with growth in Global Gaming enough to push total revenue up.

Reflecting on Q3, IGT CEO Vince Sadusky highlighted momentum across key performance indicators for the period and noted that the company has tightened full-year guidance to the upper end of previous forecasts based on its Q3 performance.

“The strength of our leadership positions across Global Lottery, Global Gaming and PlayDigital is evident in our third quarter and year-to-date results,” Sadusky said. “Excellent momentum in key performance indicators is driving revenue growth and even stronger profit expansion. With a compelling pipeline of innovative products and solutions, I am confident we can achieve our near and medium-term goals as we focus on unlocking the intrinsic value of IGT’s market-leading assets.”

Breaking down the Q3 performance, IGT says its Global Lottery business generated $601m in the three months to 30 September, 4.0% lower than the previous year. IGT noted declines across both service and product sales revenue within the Global Lottery segment. In contrast, Global Gaming revenue jumped 7.9% to $409m, driven by growth in the installed base and higher system and software sales. PlayDigital revenue remained level at $55m for Q3, with growth in online casino offset by the impact of exiting certain legacy iSoftBet jurisdictions.

Operating costs for Q3 were down 2.7% to $826m, and pre-tax profit hit $189m, down 40.0% from the previous year. However, adjusted EBITDA increased 7.7% to $433m.

As for the full-year, IGT expects revenue to amount to $4.30bn, which is at the upper end of its previous guidance range. Operating profit is forecast to reach 23% for the 12-month period.

“We’re pleased with the financial results we delivered in Q3,” IGT chief financial officer Max Chiara said. “These include top-line growth, margin expansion and strong cash flow generation. Our financial position is solid with net debt leverage at a historical low point and already comfortably within our long-term target range. Coupled with no meaningful near-term debt maturities and access to significant liquidity, this greatly enhances our balance sheet and creates additional financial flexibility.”

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