IGT Posts Strong Q3 Report Despite Slight Declines Across the Board
IGT, a global leader in gaming technology and content, has published its financials for the third quarter of the year, highlighting the strength of its business. The company also published its current forecasts for the FY results.
Revenue Slowed Down But the Results Remained Strong
Among other things, the company reported Q3 revenue of $587 million. Despite marking a 2% decrease year-on-year, this figure was still favorable and, according to officials, reflects IGTās momentum in Italy and improved instant and draw game sales in the US.
The quarter also saw the company report $110 million in operating income, down 33% year-on-year. The decline was attributed to internal restructuring and business optimization. Income margin, for context, was 18.7% for Q3 2024. The company also reported a $0.39 loss per share.
Adjusted EBITDA for the period reached $264 million, down 6% year-on-year. EBITDA margin also decreased slightly to 44.9%. The figure still highlights an attractive profit profile of IGTās pure play lottery business, it noted.
The company wrapped up the quarter with $501 million in cash and cash equivalents, up 4% year-on-year. Its outstanding debt decreased by 3% year-on-year to $5.15 billion.
As part of its financial update, IGT introduced its Q4 and FY 2024 outlook. The gaming giant now expects revenue in the range of $640-690 million and adjusted EBITDA in the range of $280-300 million for Q4. The company also expects revenue of $2.5-2.55 billion and adjusted EBITDA of $1.16-$1.18 billion for the full year.
Other Q3 Highlights
Q3 2024 was notably the first quarter in which the results of its Gaming & Digital business were classified as discontinued operations. For context, the divisionās $4.05 billion sale to funds managed by affiliates of Apollo Global Management was announced in July and is expected to close by the end of Q3 2025.
Other key highlights include the execution of a 10-year facilities management contract extension with the NC Education Lottery, the acquisition of a three-year primary instant ticket printing contract with Portugalās national lottery, and a three-year instant ticket printing contract with FDJ.
In Q3, the company also issued EUR 500 million 4.25% Senior Secured Notes due 2030.
The company also initiated OPtiMA 3.0, a multi-year program that seeks to optimize the companyās general & administrative and operating activities.
Executives Praised the Results
Vince Sadusky, IGTās chief executive officer, expressed his thoughts on the results, saying that they highlight the resilience of IGTās business model. He added that the first nine months of the year have seen the company generate a stellar $1.9 billion in revenue thanks to its steady business in key markets.
We are excited to build upon a solid foundation as we transform into a leaner, more focused global lottery pure play and capitalize on attractive industry dynamics.
Vince Sadusky, CEO, IGT
Max Chiara, the companyās chief financial officer, added that continuing operations drove sustained cash flow generation. Additionally, the value of the company was further enhanced on a go-forward basis by a low pro forma leverage profile and the launch of a cost optimization initiative.
