[bsa_pro_ad_space id=1 link=same] [bsa_pro_ad_space id=2]

Skip to Content

Supplier News

Global lottery achieves six consecutive quarters of operating margin expansion for IGT

By - 15 May 2024

International Game Technology generated revenue of $1.07bn, up one per cent for the first quarter ended March 31, 2024, driven by strong Global Lottery growth, partially offset by the timing of Gaming & Digital product sales.

Global Lottery revenue came in at $661m increasing by six per cent year-over-year on significantly higher product sales, driven by delivery of GameTouch 28 self-service terminals in Canada and software upgrades in Singapore and Germany, and continued same-store sales strength in Italy

Gaming & Digital revenue came in at $406m, compared to $436m in the prior year, reflects lower product sales due to fewer terminal unit shipments in the current year and elevated intellectual property and software licenses in the prior year, partially offset by higher service revenue driven by growth in the global installed base, which more than offset lower yields, and a 10 per cent increase in iGaming revenue

“Innovative game, hardware, and systems solutions drove better-than-expected Global Lottery and Gaming & Digital performance in the first quarter,” said Vince Sadusky, CEO of IGT. “As a result, we are upgrading our full-year 2024 revenue and profit goals, which reflect broad-based momentum across key performance indicators in the balance of the year. We continue to make progress on separating Global Lottery from Gaming & Digital and preparing for the proposed transaction with Everi.”

“We delivered a record organic profit performance in the first quarter, if we exclude Separation & divestiture costs,” said Max Chiara, CFO of IGT. “The Company is operating from a position of strength with historically low net debt leverage, ample liquidity, and manageable near-term debt maturities.”

The quarter was, of course, marked by the announcement that IGT’s Gaming & Digital business wasto be spun off and combined with Everi Holdings with the transaction expected to close in late 2024/early 2025

During the quarter, IGT eceived a supply contract extension from the UK National Lottery and executed licensing agreement with the Maryland Lottery for IGT’s patented Cash Pop draw-based game

Mystery of the Lamp was named Top Performing New Premium Game at 2024 EKG Slot Awards Show. IGT was awarded a contract to provide PeakDual 27 video lottery terminals across Quebec and launched iGaming content in Rhode Island.

Mr Sadusky added: “Global Lottery has now achieved six consecutive quarters of operating margin expansion. Same store sales in North America and the rest of the world were slightly below prior year, mostly due to differences in the year-to-year cadence of new instant ticket game launches, especially for higher price games. Global Lottery sales continue to expand at a fast split, up over 20 per cent of the period, led by a growing portfolio of high-performing e-instant games like Ghostbusters in the US and Ultra Numerissimi in Italy.

“New Jersey’s $50m explosion launched in the end of Q1 with a $20 price point and that’s having a similarly positive impact. Cash Pop of proprietary IGT draw-based game recently expanded to a 13th jurisdiction. The highly customized game play in multiple daily draw times creates an engaging player experience which explains Cash Pop’s popularity and success in helping to drive lottery sales growth. Georgia’s multichannel Quick Win game launched in September, currently has eight iterations in the market.” 

In terms of gaming, he added: “Broad-based demand for games and cabinets is driving sustained profit momentum for our Gaming and Digital segment, where year-to-year profit margins expanded for the 12th consecutive quarter. The global installed base grew to over 54,000 units in the quarter. This includes the seventh consecutive quarter of growth for US and Canada premium units. 

“In fact, the US and Canada installed base of multi-level progressive games was up six per cent from the year-end levels on the continued success across Egyptian Link and Mystery of the Lamp, which was named the top-performing new premium game at this year’s EKG Slots awards show. Gaming machine unit sales have been of a strong multiyear growth trajectory, thanks to a consistent pipeline of exciting new games. 

Rising Rockets is one of the latest in that roster securing the Number Three and Number Five spots in top indexing new core video games. Our new cabinets, in particular, the PeakCurve 49 remain among the top performing North American cabinets, and this helped drive record US and Canada average selling prices in Q1. 

iGaming revenue grew 10 per cent in the quarter with GGR reaching an all-time high in March driven by strong IGT game performance in the US. That momentum was supported by the top-performing Cash Eruption.

Mr Sadusky explained: “In addition to our popular video poker and table game offerings. We continue to see success with our bespoke game program and recently launched Wheel of Fortune Triple Extreme spin with BetMGM and Fort Knox Cats with FanDuel. IGT has had consistent success bringing gaming and digital games to market through focused R&D investment, including process improvements and more discipline in game and hardware development.” 

Share via
Copy link