International Game Technology (IGT) has announced an optimistic outlook for FY24 following the release of its first-quarter financial results for 2024. The company experienced a mixed performance across its Global Lottery and Gaming & Digital divisions, with notable highlights in revenue and operational efficiency.
Overview of Financial Performance:
IGT reported total revenue of US$1.07 billion for the first quarter of 2024, marking a 1% increase compared to the same period last year. Despite this year-on-year growth, revenue dipped from US$1.17 billion in the previous quarter, primarily attributed to fluctuations in product sales timing within the Gaming & Digital division. Notably, the Global Lottery segment stood out with a 6% year-on-year revenue increase to US$661 million. However, Gaming & Digital experienced a 7% decline in revenue, totaling US$406 million for the quarter.
CEO’s Perspective:
CEO Vince Sadusky emphasized the company’s performance, noting that despite challenges such as product sales timing, IGT surpassed expectations due to its focus on innovative game, hardware, and systems solutions. Sadusky highlighted the company’s commitment to enhancing shareholder value through strategic initiatives, including the ongoing separation of Global Lottery from Gaming & Digital and the planned merger with Everi Holdings.
Financial Highlights:
Operating income remained steady at US$256 million compared to the previous year, exceeding expectations by 400 basis points. However, costs associated with separation and divestiture activities impacted operating income, which could have otherwise reached a record US$273 million. Adjusted EBITDA totaled US$443 million, representing a 1% year-on-year decrease, also influenced by separation and divestiture costs.
CFO’s Insights:
Max Chiara, IGT’s Chief Financial Officer, highlighted the company’s robust financial position, characterized by historically low net debt leverage, ample liquidity, and manageable near-term debt maturities. Despite the challenges posed by separation and divestiture costs, Chiara emphasized the record organic profit performance achieved by the company in the first quarter.
Outlook for FY24:
Based on the encouraging performance in Q1 and anticipated momentum throughout the remainder of the fiscal year, IGT has revised its full-year revenue projection to US$4.4 billion. The company expects to generate US$1.05 billion in revenue in the second quarter of FY24, reflecting confidence in its ability to leverage key performance indicators and capitalize on strategic initiatives.
IGT’s first-quarter financial results for 2024 underscore a resilient performance amidst market dynamics and internal restructuring efforts. The company’s focus on innovation, operational efficiency, and strategic initiatives positions it for sustained growth and value creation in FY24 and beyond. As IGT navigates through the evolving landscape of the gaming and lottery industry, stakeholders can anticipate continued momentum and value generation driven by a commitment to excellence and shareholder value.