Global gaming products and services giant IGT saw incremental growth in the first quarter of the year, with operating income reaching $255 million, a 1 percent yearly uptick, as adjusted EBITDA rose by 4 percent, to $449 million.
The results come on the back of $1.06 billion in revenue, a 1 percent rise despite an 8 percent drop in its primary Global Lottery segment, to $624 million.
The group’s other segments both saw double-digit growth during the quarter, on a yearly basis, with the Global Gaming segment up 17 percent, to $381 million, and its PlayDigital arm also rising 17 percent, to $55 million.
Income from the lottery segment fell slightly, by 5 percent, during the quarter, to $240 million, which the group attributes to the sale of its Italy commercial services business. But the group notes that it saw a 38 percent operating income margin ‘driven by high-profit flow-through of same-store sales growth, including elevated jackpot activity and positive geographic mix’.
The Global Gaming arm’s $69 million in income recorded during the period was a 34 percent yearly increase ‘on strong installed base productivity and operating leverage on a leaner cost structure’.
Meanwhile, the PlayDigital segment brought in $14 million in operating income, up 9 percent yearly with a margin ‘modestly better than 4Q22 despite significantly higher jackpot expense’.
Overall, during the quarter, net income did fall by nearly half, to $67 million, from $117 million in 1Q22.
2Q23 expectations
Looking ahead, the group is expecting 2Q23 revenue of ‘approximately $1 billion’ and an operating income margin of between 22 and 24 percent.
For the full year, IGT is planning for between $4.1 billion and $4.3 billion in revenue, with an income margin of between 21 and 23 percent.
Cash from operations is expected to total between $900 million and $1 billion.
CEO statement
Speaking of the first quarter results, the group’s CEO, Vince Sadusky, noted that “Our first quarter results exceeded expectations and put us firmly on track to achieve our full-year outlook […] Compelling innovation and sustained strength in customer and player demand are fueling momentum across our Global Lottery, Global Gaming, and PlayDigital segments. This is clear in the excellent key performance indicators achieved in the quarter. We believe the focused execution of our strategy to Grow, Innovate, and Optimize should create significant value as we progress toward our 2025 goals”.
