International Game Technology said it was upgrading its FY24 revenue and profit goals after its Global Lottery and Gaming & Digital divisions both exceeded expectations in the three months to 31 March 2024.
Releasing its 1Q24 financial results overnight, IGT reported revenue of US$1.07 billion, up 1% year-on-year but down from US$1.17 billion in the December quarter, with momentum driven by strong Global Lottery growth.
While the results were partially offset by the timing of product sales in Gaming & Digital ahead of the division’s planned merger with Everi Holdings, CEO Vince Sadusky said the performance was still better than expected on “innovative game, hardware and systems solutions.
“As a result, we are upgrading our full-year 2024 revenue and profit goals, which reflect broad-based momentum across key performance indicators in the balance of the year. We continue to make progress on separating Global Lottery from Gaming & Digital and preparing for the proposed transaction with Everi,” he added.
Global Lottery booked an 6% year-on-year increase in revenue in Q1 to US$661 million, slightly down from US$681 million in 4Q23, while Gaming & Digital saw revenues decline 7% to US$406 million. This is the first quarter in which the gaming and digital divisions have been reported as one.
Operating income of US$256 million was flat year-on-year but exceeded expectations by 400bps (4%) and would have come in at a record US$273 million of not for costs associated with separation and divestiture costs ahead of the Everi merger.
Adjusted EBITDA of US$443 million was down 1% year-on-year, also on separation and divestiture costs.
“We delivered a record organic profit performance in the first quarter, if we exclude separation and divestiture costs,” said Max Chiara, IGT’s Chief Financial Officer.
“The company is operating from a position of strength with historically low net debt leverage, ample liquidity, and manageable near-term debt maturities.”
The company added that it is now anticipating revenue of US$4.4 billion in FY24, including US$1.05 billion in Q2.
