International Game Technology (IGT) announced record profits for the full year 2023, attributing the success to a strong finish in the fourth quarter.
In the group’s financial report, IGT’s CEO, Vince Sadusky, highlighted the company’s broad-based momentum in key performance indicators, driven by a compelling array of products and solutions across its Global Lottery, Global Gaming, and PlayDigital segments.
For Sadusky, the recent decision to split the business into separate lottery and gaming pure play companies, each with experienced management teams and simplified business models, is ‘expected to better serve customers and create significant value for stakeholders’.
Max Chiara, CFO of IGT, expressed satisfaction with achieving all of the company’s financial goals in 2023.
‘Robust cash generation funded incremental investments in the business and shareholder returns, while driving leverage to historically low levels, putting IGT in a strong financial position as we enter 2024. This gives us confidence in further expanding our investment in the business to fund future growth,’ Chiara pointed out in the report.
Lottery and gaming
In terms of financial performance, IGT reported revenue of $1.1 billion driven by 7 percent Global Lottery growth in the fourth quarter. Operating income rose 11 percent to $256 million, with operating income margin expanding to 22.7 percent.
The company pointed to its strong performances across various segments to justify its revenue growth.
Global lottery revenue reached $681 million, marking a 7 percent increase from the prior year, attributed to robust product sales and growth in Italy same-store sales.
Global gaming revenue remained steady at $390 million, with higher terminal product sales revenue and increased intellectual property revenue offsetting lower systems sales. PlayDigital revenue totaled $59 million, compared to $65 million in the prior year, primarily due to lower sports betting volumes and hold rates in Rhode Island.
Operating income for the quarter rose to $256 million, up 11 percent from $230 million in the prior year. This increase resulted in an operating income margin expansion of 160 basis points to 22.7 percent, reflecting growth across business segments.
For the full year 2023, IGT delivered revenue of $4.3 billion, up 2 percent year-over-year and 7 percent net of Italy commercial services sale.
Operating income reached a record $1.0 billion, with operating income margin improving to 23.2 percent. The company also achieved record Adjusted EBITDA of $1.8 billion and Adjusted EBITDA margin of 41.3 percent.
Looking ahead, IGT expects full year 2024 revenue of $4.3 billion to $4.4 billion with an operating margin of 20 – 21 percent, including a 300 basis point negative impact from separation and divestiture costs.
