SBC News IGT hails weight loss as Q1 beats corporate expectations

IGT hails weight loss as Q1 beats corporate expectations

IGT Plc has reaffirmed its FY2023 corporate targets with confidence following an impressive start to year trading driven by commercial growth across all core business units. 

Publishing its Q1 2023 trading update, the NYSE gambling technology group registered corporate revenues of $1.06bn, up 1% on corresponding 2022 results of $1.05bn. The 1% revenue uplift stands against Q1 FX currency impacts of -$26m and period comparatives reflecting IGT’s sale of Lottomatica B2C business.  

No longer accounting for its Italian business, IGT’s Global Lottery unit reported an 8% downturn in revenues to $624m (Q12022: $680m).  However, the decline in Global Lottery sales was offset by a 17% gain across its Global Gaming and Play Digital units, which reported revenues of $381m and $55m.

In its breakdown of units, IGT cited improved service and product sales for its Global Gaming unit, and significant commercial improvement of its online casino inventory, attributed to the integration of the iSoftBet games portfolio.

Highlighting new operational efficiencies, a transformed IGT detailed that its operating income margin stood at a 24%, matching its ‘highend outlook’ as Q1 operating income increased by 1% to $255m (Q12022: $252m).    

Q1 Adjusted EBITDA stood at $449 million with a 42.3% margin, marked as “one of the highest levels in the company’s history”. Further financial highlights saw IGT improve its net debt leverage to 3.0x to $5.1bn the lowest it has ever been.

“Our first quarter results exceeded expectations and put us firmly on track to achieve our full-year outlook,” said Vince Sadusky, CEO of IGT.

“Compelling innovation and sustained strength in customer and player demand are fueling momentum across our Global Lottery, Global Gaming, and PlayDigital segments. This is clear in the excellent key performance indicators achieved in the quarter. We believe the focused execution of our strategy to Grow, Innovate, and Optimize should create significant value as we progress toward our 2025 goals.”

IGT continues to lead in cashless gaming growth, having signed a multi-year agreement with Graton Resort & Casino to enable cashless gaming through its newly adopted Resort Wallet and IGTPay solutions.

The company also extended sports betting momentum through strategic agreements with Betfred, Treasure Bay Casino and Hotel, UBetOhio, Santa Ana Star Casino Hotel and BetSkybox.

IGT has reaffirmed its full-year 2023 outlook, expecting revenue between $4.1-to-$4.3bn and an operating income margin of 21% to 23%. For Q2 2023, the company anticipates revenue of approximately $1.0 billion and an operating income margin of 22% to 24%.

Lowering its debt demands, the NYSE group improves its liquidity to$2.1bn with access to $700m in unrestricted funds as of 31 March.

 “The strong start to the year includes significant cash flow generation and further improvement in our credit profile,” added Max Chiara, CFO of IGT.

“The continued improvement in net debt leverage reinforces our conviction in accomplishing the lower end of the 2.5x – 3.5x target range by 2025. We are focused on enhancing our financial flexibility, being operationally agile, and remaining disciplined with costs, all of which should enable the achievement of our 2025 margin and cash flow targets even in the current uncertain macroeconomic context.”

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