Fueled by its global lottery division, IGT generated ‘among highest revenue and profit levels in company history’ delivering consolidated revenue of $1,015m, up 25 per cent from the prior year.
Lottery revenue of $749m, up 48 per cent, drove this boosted by 32.4 per cent growth in same-store sales. Global gaming revenue totals $266m, versus $310m in the prior year; up sequentially from $255m in Q4’20 as US gaming markets continue to recover.
“We delivered some of our strongest profit results ever during the first quarter, fueled by robust player demand and significant, structural cost savings,” said Marco Sala, CEO of IGT. “Our Global Lottery segment achieved record same-store sales levels on impressive increases around the world. The Global Gaming segment is demonstrating swift, progressive recovery, including accelerated momentum for Digital & Betting activities. We expect to return to 2019 levels for key financial metrics this year.”
“With the recovery in our business in full swing, we are delivering strong operating leverage which, when coupled with invested capital discipline, drove strong cash flows in the quarter,” said Max Chiara, CFO of IGT. “This enabled us to accelerate our debt retirement strategy and gives us confidence in a return to pre-pandemic leverage levels by the end of the current year.”
Jefferies Analyst David Katz commented: “The outperformance is more prominent than that of the industry overall, particularly related to FCF, and should result in a positive reaction in the shares. The strength of the lottery business is noteworthy, given its stability within the consumer economy. Our ultimate focus remains on leverage reduction, which was also significant in the quarter and positions IGT to progress toward a broader range of capital returns, which is core to our thesis.”
Caption: IGT’s Marco Sala