Global gaming giant IGT has reported a 2% year-on-year decline in revenue to US$1.02 billion and a 7% decline in Adjusted EBITDA to US$409 million in the three months to 30 June 2022, with its results impacted by prior-year gains across multiple segments and unfavorable currency movements.
A net loss of US$4 million, which reversed income of US$306 million in 2Q21, was also impacted by gain on sale and income from discontinued operations in the prior-year period, while the company recognized a US$150 million pre-tax non-operating expense during the quarter, related to ongoing litigation.
Despite the slight decline, IGT noted that global gaming revenue had grown by 21% year-on-year in Q2, driven by strong US and Canada replacement unit demand, higher average selling prices and increased installed base yields.
Global lottery revenue fell by 11% to US$648 million – mainly due to US$70 million in prior-year benefits primarily from the closure of gaming halls in Italy – while Digital & Betting revenue of US$43 million was stable year-on-year with iCasino growth in the US partially offset by softness in other markets. GGR in the North America sports betting market was also impacted by lower hold levels, it said.
IGT reported a 7% decline in operating income to US$244 million, albeit 1% higher year-on-year at constant currency, while Adjusted EBITDA was only down 1% at constant currency – aided by EBITDA margin of 40% being “among the highest in the company’s history.”
CEO Vince Sadusky said the 2Q22 results were some of IGT’s strongest ever given comparisons with the record results recorded during the same period last year.
“Our business profile is supported by significant recurring revenue streams backed by long-term contracts and resilient end markets, providing a solid foundation on which to grow,” he said. “We are laser focused on executing our strategic objectives and creating compelling value for our stakeholders.”
Chief Financial Officer Max Chiara added, “Our first half results set us firmly on the path to achieving our 2022 financial targets.
“Rigor on costs and incremental revenue opportunities allow us to maintain our full-year operating income margin outlook despite unfavorable currency movements and macroeconomic challenges. At the same time, we are returning significant capital to shareholders via dividends and share repurchases.”
IGT said it has reduced net debt from US$5.9 billion on 31 December 2021 to US$5.7 billion on 30 June 2022, with total liquidity standing at US$2.1 billion.
