Supplier News
US – IGT ‘exceeds expectations’ with strong start to 2023
By Phil - 10 May 2023
International Game Technology generated revenue of $1.06bn, up one per cent compared to $1.05bn in the prior year in its first quarter.
The group saw growth in cashless gaming, signing of multi-year agreement with Graton Resort & Casino to enable cashless gaming through award-winning Resort Wallet and IGTPay solutions
It also extended its sports betting footprint through strategic agreements with Betfred, Treasure Bay Casino and Hotel, UBetOhio, Santa Ana Star Casino Hotel, and BetSkybox; recently signed three-year contract extension in Rhode Island.
Global Lottery revenue of $624m was down eight year-over-year due to the sale of Italy commercial services business; at constant currency and net of the Italy commercial services sale, revenue rose 4% primarily driven by strong same-store sales, led by Italy and elevated US multi-jurisdictional jackpot activity
Global Gaming revenue rose 17 per cent, 19 per cent at constant currency, to $381m, as demand for compelling products drove double-digit increases in both service and product sale revenue streams, with record first quarter unit shipments and average selling prices, installed base growth, and higher yields
PlayDigital revenue increased 17 per cent, 20 per cent at constant currency, to $55m, primarily driven by iCasino with contributions from the iSoftBet acquisition and organic growth, partially offset by higher jackpot expense
“Our first quarter results exceeded expectations and put us firmly on track to achieve our full-year outlook,” said Vince Sadusky, CEO of IGT. “Compelling innovation and sustained strength in customer and player demand are fueling momentum across our Global Lottery, Global Gaming, and PlayDigital segments. This is clear in the excellent key performance indicators achieved in the quarter. We believe the focused execution of our strategy to Grow, Innovate, and Optimize should create significant value as we progress toward our 2025 goals.”
“The strong start to the year includes significant cash flow generation and further improvement in our credit profile,” said Max Chiara, CFO of IGT. “The continued improvement in net debt leverage reinforces our conviction in accomplishing the lower end of the 2.5x – 3.5x target range by 2025. We are focused on enhancing our financial flexibility, being operationally agile, and remaining disciplined with costs, all of which should enable the achievement of our 2025 margin and cash flow targets even in the current uncertain macroeconomic context.”
