IGT Reports Strong First Quarter Earnings
Global gaming technology giant, International Game Technology (IGT), has unveiled its financial performance for the initial three months of 2023. The company reported earnings of $1.06 billion, a modest 0.8% rise from the corresponding period in the previous year.
IGT’s chief executive, Vince Sadusky, expressed satisfaction with the results, stating that they surpassed expectations and reinforced the company’s full-year projections.
Sadusky attributed the positive performance to the strong contributions of IGT’s Global Lottery, Global Gaming, and PlayDigital divisions.
Despite a decrease of 8.2% in Global Lottery revenue, reaching $624 million, the Global Gaming and PlayDigital segments witnessed significant growth, registering increases of 17.2% and 17.0%, respectively.
Sadusky emphasized the role of innovation and sustained customer demand in driving momentum across these segments.
The company attributed the decline in Global Lottery revenue to the divestment of its Italian commercial services business.
The Global Gaming segment generated revenue of $381 million, while PlayDigital revenue surpassed $55 million.
Geographically, revenue in the United States and Canada reached $666 million, reflecting an increase of 11.4%, while revenue in Italy experienced a decline of 18.4%.
Earnings from services constituted a substantial part of the quarter’s income, reaching $846 million, while product sales comprised the remaining $215 million.
Service-related expenditures decreased by 7.0% during the quarter, reaching $398 million. Sales and research and development (R&D) costs reached $217 million, a decrease of 12.4%, while the cost of goods sold for products was $127 million, an increase of $5 million from the previous year.
R&D expenses also rose by $5 million, reaching $62 million.
In general, operational expenses reached $805 million, an increase of 0.7%, leading to an operating profit of $255 million, a slight increase of $3 million.
Total non-operating expenses, including interest expense, foreign exchange losses, and other non-operating costs, amounted to $101 million, an increase of 44.3%.
Income before taxes was $155 million. After deducting income taxes of $87 million, net income for the quarter reached $67 million, an increase of 42.7% compared to the same period last year.
Adjusted EBITDA was $449 million, an increase of 3.7%.
Outlook for the Second Quarter
IGT has provided guidance for the second quarter of 2023, forecasting revenue of $1 billion and an operating margin of 22%-24%.
Full-year revenue is anticipated to be between $4.1 billion and $4.3 billion, with cash flow from operating activities expected to be between $900 million and $1 billion.
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