GGRAsia – IGT posts US$449mln in 1Q EBITDA, gaming sales up 17pct

IGT posts US$449mln in 1Q EBITDA, gaming sales up 17pct

May 09, 2023 Newsdesk Latest News, Top of the deck, World

Casino equipment maker and digital gaming content provider International Game Technology Plc (IGT) generated first-quarter revenue of US$1.06 billion, a 0.9-percent increase from a year ago.

Adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) for the period stood at US$449 million, up 3.7 percent from the first quarter of 2022, the company said in a Tuesday press release.

The group’s 42.3-percent adjusted EBITDA margin for the first three months of 2023 was “among the highest levels in company history,” it stated. In the prior-year period, the adjusted EBITDA margin had been 41.2 percent.

IGT recorded a net profit attributable to shareholders of US$23 million in the three months to March 31, compared to a US$79-million profit 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 June 8.

The group’s global gaming revenue stood at US$389 million in the fourth quarter, up 21.2 percent from a year earlier. That was due to “robust double-digit growth across service and product sale revenue streams,” it stated.

Revenue in the gaming segment rose by 17.2 percent year-on-year, to US$381 million. The segment generated operating income of US$69 million, up 32.7 percent year-on-year.

“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,” said IGT. The gaming segment also showed “strong installed base productivity and operating leverage on a leaner cost structure,” it added.

IGT stated it sold 8,272 gaming machine units globally during the first three months of 2023, up 15.3 percent from the prior-year quarter. That included 1,012 new units, and 7,260 replacements.

Revenue in the digital and betting segment was US$55 million, up from US$47 million a year earlier. IGT recorded revenue of US$624 million from its lottery segment, down from US$680 million a year earlier, “due to the sale of Italy commercial services business”.

“Our first quarter results exceeded expectations and put us firmly on track to achieve our full-year outlook,” said Vince Sadusky, IGT’s chief executive, as cited in the release.

“Compelling innovation and sustained strength in customer and player demand are fuelling momentum across our global lottery, global gaming, and PlayDigital segments,” he added. “We believe the focused execution of our strategy … should create significant value as we progress toward our 2025 goals.”

IGT reduced its net debt to US$5.12 billion as of March 31, compared to US$5.15 billion at the end of December.

“The strong start to the year includes significant cash flow generation and further improvement in our credit profile,” stated Max Chiara, the group’s chief financial officer. “The continued improvement in net debt leverage reinforces our conviction in accomplishing the lower end of the 2.5 times to 3.5 times target range by 2025.”