SBC News Voice of the Sports Betting Industry
IGT Plc is confident of delivering on its 2022 financial targets and operating objectives, despite a slowdown in the performance of its flagship Global Lottery unit.
Publishing its Q3 trading statement, the NYSE gambling technology group achieved consolidated revenues of $1.06bn, up 8% on 2021 comparative results of $984m.
Headline growth was maintained by the group’s Global Gaming unit recording a 31% increase in revenues to $379m (Q3 2021: $289m), attributed to a “significant increase in machine shipments, average selling prices, installed base yields, and intellectual property and multi-year poker site licenses”.
Global Gaming growth countered a 4% decline in Global Lottery revenues, which stood at $626m, as the unit’s commercial performance continues to be impacted by FX fluctuations against the US dollar.
Helping offset Global Lottery’s decline, IGT’s Digital-&-Betting unit achieved revenues of $54m, up 27% on the corresponding Q3 2021 result of $43m.
Digital growth was attributed to the successful integration of new games on the IGT iCasino platform, delivered by the acquisition of iSoftBet.
The NYSE group reports a stable Q3 EBITDA of $402m, down 1% on 2021 comparatives of $407m, due to currency downturns on the revenue performance and income of the Global Lottery unit
Period operating income stood at $211m, an exact match on Q3 2021 profit results. Of note, IGT underlined the income performance of the Global Gaming unit that doubled its profits to $65m.
Company leadership maintains its revised full-year financial outlook, in which IGT targets corporate revenues of between $4.1-to-4.2bn, combined with cash from operations to be in the range of $850-$950 million.
Full-year 2022 results will account for gross proceeds of approximately $700m, generated by the sale of IGT’s Italian payment and tech services business, completed in September.
Proceeds from the sale will be used to accelerate the expansion of IGT’s digital unit and to upgrade the commercial capacity of the Global Gaming units.
Group CEO Vince Sadusky commented: “IGT’s organization along three business segments enables our teams to be focused on developing and delivering best-in-class products and services.
“The accomplishments are evidenced in accelerated revenue and profit expansion in the third quarter, achieving the top-end of our margin outlook. Customer and player demand trends remain encouraging and IGT’s suite of innovative products and solutions has never been better.
“In addition, we reached the lowest debt leverage in the Company’s history, while returning a record $224 million in capital to shareholders so far this year.”
