GGRAsia – IGT 2Q revenue tops US$1bln, EBITDA at US$443 million

IGT 2Q revenue tops US$1bln, EBITDA at US$443 million

Aug 01, 2023 Newsdesk Latest News, Top of the deck, World

Casino equipment maker and digital gaming content provider International Game Technology Plc (IGT) generated second-quarter revenue of just below US$1.06 billion, 3.3-percent higher than a year ago.

Adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) for the latest reporting period stood at US$443 million, up 8.3 percent from the second quarter of 2022, the company said in a Tuesday press release.

Second-quarter operating income stood at US$251 million, up 10.1 percent from the prior-year period.

The company said its second quarter evenue and operating income margin met the “high end” of the outlook range that had been previously announced. The group recorded a 42.0-percent adjusted EBITDA margin for the three months to June 30.

IGT recorded a net profit attributable to shareholders of US$46 million in the second quarter, compared to a net loss of US$4 million a year earlier.

The company’s board of directors declared a quarterly cash dividend of US$0.20 per common share, to be paid on August 29.

The group’s global gaming revenue stood at US$373 million in the quarter to June, up 13.0 percent from a year earlier. That was due to “record U.S. and Canada unit shipments for a second quarter period, higher global average selling prices, growth in the installed base across geographies, and robust system sales,” it stated.

Revenue in the gaming segment included US$185 million in product sales during the quarter, up 22.5 percent in year-on-year terms. The segment generated operating income of US$71 million, a 24.6-percent increase from a year ago.

IGT stated it sold 8,269 gaming machine units globally during the second quarter of 2023, up 14.9 percent from the prior-year quarter. That included 1,061 new units, and 7,208 replacements.

Revenue in the group’s digital and betting segment PlayDigital was US$59 million, up from US$43 million a year earlier. IGT recorded revenue of US$624 million from its lottery segment, down from US$648 million a year earlier.

“Our second-quarter and first-half results reflect solid revenue and profit momentum across all business segments,” said Vince Sadusky, IGT’s chief executive, as cited in the release.

He added: “We achieved the high end of our outlook by executing key strategic initiatives and growing demand for IGT’s compelling content and solutions. We are solidly on track to deliver on our 2025 objectives and remain focused on unlocking the intrinsic value of IGT’s market-leading businesses.”

In June, IGT announced that its board of directors was “evaluating potential strategic alternatives” for the group’s global gaming and PlayDigital segments.

The firm’s net debt stood to US$5.36 billion as of June 30, compared to US$5.15 billion at the end of December.

“Our year-to-date performance showcases the strong cash generation of the business. We have a solid foundation to build from as we continue to invest in our growth objectives, further reduce debt, and return capital to shareholders,” said Max Chiara, the group’s chief financial officer. “Based on our first-half results, we are confidently raising our full-year 2023 revenue and operating margin outlook.”

IGT now expects to post revenue in the range of US$4.2 billion to US$4.3 billion for full-year 2023, with an operating income margin of circa 23 percent, it said in Tuesday’s release.