IGT Q3 revenue remains flat YoY
New York-listed supplier targets full year revenue of $4.3bn as growth in global gaming and PlayDigital offset lottery dip
IGT has reported flat revenue growth year on year (YoY) for Q3 2023, with the figure sitting at $1.06bn (£830m).
The supplier said revenue was in line with Q3 2022, as an increase in the firm’s global gaming revenue offset its global lottery operations.
Revenue from its global gaming arm rose 8% YoY from $379m to $409m, attributed to “growth in the installed base and higher system and software sales”, while its PlayDigital operation saw a 1% rise YoY from $54m to $55m.
Growth in icasino was offset by exiting legacy iSoftBet jurisdictions and high sports betting hold levels from the previous year.
The group’s global lottery arm revenue decreased 4%, from $626m to $601m.
Operating income in IGT’s global lottery arm decreased 2% YoY from $211m to $206m. However, PlayDigital operating income rose 32% from $12m to $16m and its global gaming arm increased significantly; rising 42% from $65m to $93m.
Total operating income increased 13% from $211m to $239m, as did its operating income margin from 19.9% to 22.4%.
In total adjusted EBITDA, IGT posted an 8% increase YoY with figures standing at $433m, up from $402m.
The global lottery arm saw adjusted EBITDA drop 1%, from $310m to $306m, but both global gaming and PlayDigital saw growth.
There was a 16% increase for PlayDigital, up from $16m to $19m, with global gaming seeing a 41% spike, from $96m to $135m.
Among its Q3 highlights, IGT noted the seven-year lottery extension agreed with the California Lottery to remain its primary technology partner through to October 2033.
There was also a 10-year contract extension as retail and ilottery systems partner to the Kentucky Lottery Corporation, a deal which sees the pair through to July 2036.
For Q4, IGT has set expectations of revenue at $1.1bn, global lottery revenue to be up “low-to-mid single-digits” YoY and both global gaming and PlayDigital revenue to be “in line” with the previous year’s period.
In terms of full year expectations, revenue should amount to $4.3bn with an operating income margin of 23%.
Vince Sadusky, IGT CEO, said: “The strength of our leadership positions across global lottery, global gaming, and PlayDigital is evident in our third quarter and year-to-date results.
“Excellent momentum in key performance indicators is driving revenue growth and even stronger profit expansion.
“With a compelling pipeline of innovative products and solutions showcased at recent tradeshows, I am confident we can achieve our near and medium-term goals as we focus on unlocking the intrinsic value of IGT’s market-leading assets.”
Max Chiaria, IGT CFO, added: “We are pleased with the financial results we delivered in the third quarter, including top-line growth, margin expansion, and strong cash flow generation.
“Our financial position is solid with net debt leverage at a historical low point and already comfortably within our long-term target range, which coupled with no meaningful near-term debt maturities and access to significant liquidity, greatly enhances our balance sheet and creates additional financial flexibility.”