Gaming equipment maker and content provider International Game Technology Plc (IGT) on Tuesday reported aggregate revenue of US$651 million for the fourth quarter of 2024, down 4.4 percent from a year earlier.
The fourth quarter marked the second reporting period in which the results of IGT’s gaming and digital segments were classified as “discontinued operations”.
The group operates three main segments: global lottery, global gaming, and PlayDigital, its online content arm.
IGT is set to sell its gaming and digital interests to funds managed by affiliates of private equity firm Apollo Global Management Inc for US$4.05 billion. The gaming supplier stated in Tuesday’s results announcement that the deal is “expected to close by the end of the third quarter of 2025,” as previously outlined.
Upon completion of the sale, the current IGT will become purely a lottery services company under a new name and ticker symbol.
The funds linked to Apollo will simultaneously acquire gaming technology supplier Everi Holdings Inc, paying US$14.25 per share in cash.
IGT’s fourth-quarter adjusted earnings before interest, taxation, depreciation, and amortisation (EBITDA) stood at US$290 million, down 8.2 percent from a year earlier, but nonetheless “reflecting strong performance of core, recurring business and increased investment in growth initiatives,” the firm said in its Tuesday announcement.
The adjusted EBITDA margin was 44.5 percent for the period, compared with 46.4 percent in the fourth quarter of 2023.
The company reported an operating income of US$179 million for the three months to December 31, compared to US$197 million in the prior-year period.
It posted a net income of US$217 million for the fourth quarter, compared to a US$7-million loss in the prior-year period.
IGT reported full-year 2024 revenue of US$2.51 billion, in line with the prior-year period. Operating income for the 12 months ended December 31 was US$686 million, compared to US$752 million in full-year 2023.
IGT posted an adjusted EBITDA of US$1.17 billion for 2024, down 3.6 percent year-on-year. The adjusted EBITDA margin was 46.6 percent for the reporting period, compared to 48.0 percent in the prior year.
Tuesday’s announcement cited Vince Sadusky, chief executive of IGT, as saying that “2024 was a year of momentous transformation with the conclusion of our strategic review and the announced sale of our gaming and digital business”.
The CEO added: “Our unmatched capabilities in developing world-class lottery solutions and innovative game content support several important investments to drive long-term growth and shareholder returns.”
Max Chiara, the group’s chief financial officer, stated in prepared remarks that the firm had “delivered solid financial results in 2024, including robust cash flow generation to invest in the business, reduce debt, and return capital to shareholders.”
“Our core, recurring business has a compelling low-to-mid single-digit growth profile and provides a solid foundation as we head into our next capital expenditure cycle, aimed at securing our portfolio and extending its duration to more than eight years,” added Mr Chiara.
IGT’s board declared a quarterly cash dividend of US$0.20 per common share, payable on March 25.
