Global gaming supplier IGT has raised its outlook for FY23 after reporting strong growth in the June quarter, led by impressive gains in both the Global Gaming and PlayDigital segments.
According to information released overnight, consolidated revenue grew by 3% year-on-year to US$1.06 billion, despite lottery revenue falling 4% to US$624 million. This was offset by a 13% increase in Global Gaming revenue to US$373 million due to record US and Canada shipments, higher global average selling prices, growth in the installed base across geographies and robust system sales, IGT said. Segment operating income grew 25% to US$71 million with income margin expanding by 190 basis points to 19%.
Likewise, PlayDigital revenue increased 38% to US$59 million, driven by strong player demand trends and contributions from the iSoftBet acquisition. Segment operating income more than doubled to US$18 million.
Group-wide Adjusted EBITDA also increased by 8% to US$443 million with EBITDA margin increasing from 40% to 42%.
“Our second-quarter and first-half results reflect solid revenue and profit momentum across all business segments,” said IGT’s CEO, Vince Sadusky.
“We achieved the high end of our outlook by executing key strategic initiatives and growing demand for IGT’s compelling content and solutions. We are solidly on track to deliver on our 2025 objectives and remain focused on unlocking the intrinsic value of IGT’s market-leading businesses.”
IGT also announced it was raising its FY23 outlook, with revenue now expected to reach between US$4.2 billion and US$4.3 billion, an operating income margin of around 23% and cash from operations of between US$900 million and US$1 billion.
“Our year-to-date performance showcases the strong cash generation of the business,” said CFO Max Chiara. “We have a solid foundation to build from as we continue to invest in our growth objectives, further reduce debt, and return capital to shareholders. Based on our first-half results, we are confidently raising our full-year 2023 revenue and operating margin outlook.”
IGT’s net debt was US$5.36 billion as of 30 June 2023, down from US$5.72 billion a year earlier.
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