GGRAsia – IGT’s 4Q revenue up as gaming sales rise 21pct

IGT’s 4Q revenue up as gaming sales rise 21pct

Feb 28, 2023 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$1.09 billion, up 3.8 percent from a year earlier. The financial performance in the three months to December 31 “exceeded the high end” of the firm’s outlook commentary, it said in a release.

IGT’s fourth-quarter revenue figure was up 2.8 percent from the previous quarter.

Fourth-quarter adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) stood at US$419 million, up 8.3 percent from a year earlier.

Despite the higher revenue, IGT recorded a net loss attributable to shareholders of US$64 million for the final quarter of 2022, compared to a US$19-million profit in the prior-year period.

The company’s board of directors declared a quarterly cash dividend of US$0.20 per common share, to be paid on March 28.

The firm said its quarterly performance was “more than offset” by higher non-cash foreign exchange losses.

IGT recorded a foreign exchange loss of US$95 million in the fourth quarter, versus a gain of US$4 million in the prior-year period. The company also recorded a provision for income taxes of US$101 million, compared to US$56 million a year ago, “primarily due to higher non-deductible foreign exchange losses and incremental valuation allowances on deferred tax assets”.

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.

The gaming segment generated operating income of US$68 million, up 88.9 percent year-on-year, “on significant operating leverage partially offset by higher supply chain costs,” said the firm. The group’s gaming business had a “record operating income margin of 18 percent,” it added.

Revenue in the digital and betting segment was US$65 million, up 54.8 percent from a year earlier. IGT recorded revenue of US$ 639 million from its lottery segment, a decline of 7.0 percent in year-on-year terms.

IGT stated it sold 9,483 gaming machine units globally during the final three months of 2022, up 28.7 percent from the prior-year quarter. That included 728 new units, and 8,755 replacements.

Financial goals

For full-year 2022, IGT recorded net income of US$275 million, down from a US$482-million profit in the previous year. Revenue for the latest financial period was up 3.3 percent year-on-year, to nearly US$4.23 billion.

Adjusted EBITDA for 2022 fell 1.3 percent year-on-year, to just above US$1.66 billion.

“We achieved all our financial goals last year while strengthening product leadership positions across our global lottery, global gaming, and PlayDigital activities,” said IGT’s chief executive, Vince Sadusky, in prepared remarks.

He added: “Important strategic work executed over the last few years has transformed IGT into a company with higher growth prospects, a better profit profile, and a solid path to delivering on our long-term goals.”

IGT reduced its net debt by US$771 million, to US$5.15 billion as of December 31, 2022.

In Tuesday’s filing, IGT also said it expected to generate revenue in the range of US$4.1 billion to US$4.3 billion this year, with an operating income margin of 21 percent to 23 percent.

In January, IGT said one of its subsidiaries had exercised its option to redeem in full its nearly US$60.5-million, 5.35-percent interest, notes that were due in 2023.

In a separate press release on Tuesday, IGT announced that it had exercised its right to redeem EUR188 million (US$200.0 million) of its EUR500-million, 3.50-percent notes due July 15, 2024. It has also decided to redeem US$200 million of its US$1.10-billion, 6.50-percent notes due February 15, 2025.

“Each redemption is conditioned on IGT’s receipt of sufficient proceeds under its senior revolving credit facilities to complete such redemption,” stated the firm.