GGRAsia – Higher sales boosts IGT 4Q revenue to US$1.1bln

Higher sales boosts IGT 4Q revenue to US$1.1bln

Mar 02, 2022 Newsdesk Latest News, Top of the deck, World

Casino equipment maker and digital gaming content provider International Game Technology Plc (IGT) reported on Tuesday fourth-quarter revenue of US$1.05 billion, up 18.6 percent from a year earlier. The result reflected a “double-digit, constant-currency growth across segments,” the firm said in a release.

IGT’s fourth-quarter revenue figure was up 6.7 percent from the previous quarter.

The company reported fourth-quarter operating income of US$186 million, an increase of 93.8 percent from a year earlier. The figure was however down 12.3 percent sequentially.

IGT recorded a net profit attributable to shareholders of US$19 million for the three months to December 31, compared to a US$242-million loss in the prior-year period. Fourth-quarter profit was down from the US$65 million reported in the third quarter of 2021.

Fourth-quarter adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) stood at US$387 million, up 31.2 percent from a year earlier, but a 4.9-percent decline sequentially.

The group’s global gaming revenue stood at US$321 million in the three months to December 31, up 44.6 percent from the prior-year period, “primarily driven by higher replacement unit sales and average selling prices.” For full-year 2021, revenue in the gaming segment rose by 32.9 percent year-on-year, to US$1.11 billion.

Adjusted EBITDA in the gaming segment was US$66 million in the fourth quarter, an improvement on the negative US$10 million result recorded a year earlier. In full-year 2021, adjusted EBITDA for the gaming business was US$173 million, versus a negative US$38 million in 2020.

IGT stated it sold 7,366 gaming machine units globally during the final three months of 2021, up from 4,328 in the prior-year quarter. That included 1,009 new units, and 4,692 replacements.

For full-year 2021, IGT recorded net income of US$482 million, versus a US$898-million loss in the previous year. Revenue for the period was up 31.3 percent year-on-year, to US$4.09 billion.

Adjusted EBITDA for full-year 2021 stood at nearly US$1.69 billion, up 67.3 percent from the previous year.

“Our 2021 financial results reflect the best revenue, profit, and cash flow performance in the last four years, meeting or exceeding target levels on strong performance across the portfolio,” said IGT’s chief executive, Vince Sadusky.

He added: “We made important progress on several strategic objectives, and I am excited to be leading IGT in the next chapter of its evolution. We have set aggressive but achievable multi-year goals and we have a focused strategy to maximise value for all stakeholders.”

Mr Sadusky took over as IGT’s CEO in late January, as the previous boss Marco Sala moved to become the group’s executive chair.

IGT reduced its net debt by US$1.4 billion, to just above US$5.92 billion as of December 31, 2021. The firm said its leverage improved to 3.5 times, “the lowest level in company history, achieving the 2022 leverage target a year early.”

The release quoted Max Chiara, IGT’s chief financial officer, as saying: “Improving leverage to 3.5 times a year ahead of schedule enables us to pursue a balanced capital allocation framework that supports investing for growth, continued debt reduction, and the reinstatement of capital returns through quarterly dividends and share repurchases.”

The company had reinstated its quarterly dividend in the third quarter of 2021. On Tuesday, it announced a fourth-quarter dividend US$0.20 per common share, to be paid on March 29.

In November, IGT said a separate public listing of the group’s digital and betting business was “under evaluation”, as part of a strategic review for future growth.

On Monday, IGT announced an agreement to sell its Italian proximity-payment business for EUR700 million (US$779.9 million), with net proceeds from the sale to be “used to reduce debt”. The deal is expected to close during the third quarter of 2022.