GGRAsia – IGT 1Q revenue increased slightly year-over-year, driven by higher game sales

IGT 1Q revenue up slightly year-on-year, driven by higher game sales

Gaming and lottery provider International Game Technology Plc (IGT) reported first-quarter revenue of just over $1.05 billion on Tuesday, up 3.5% from the period of the previous year. The figure was stable compared to the fourth quarter of 2021.

The company said in a press release Tuesday that the revenue increase for the period was due to “significantly higher” sales in its global games segment.

IGT reported net income of $79 million, down 14.1% from the year-ago period, according to Tuesday’s press release.

Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) fell 3.8% year-on-year to $433 million.

The company declared a quarterly cash dividend of $0.20 per share, which will be paid on June 7.

For the three months to March 31, IGT reported that its global gaming revenue grew 42.5% year-over-year to $325 million, “driven by significantly higher product sales revenue and higher active installed base units”.

The company said it sold 7,176 units of gaming machines during the reporting period, compared to 4,405 in the year-ago quarter. This included 328 new units and 6,848 replacements.

Lottery segment revenue was $680 million, down 9.2% from a year earlier, which included $95 million in prior year profits.

The statement quotes IGT Chief Executive Vince Sadusky as saying, “The strong margin profile for the quarter highlights the long-term recovery in gaming activity, as well as increased gaming levels from lottery compared to pre-Covid times.”

He added, “The company’s initiatives around a simplified corporate structure have resulted in strong liquidity as we continue to invest in product development and return capital to shareholders.”

IGT said it generated $115 million of positive free cash flow in the first quarter. The company’s net debt was just over US$5.83 billion at the end of the first quarter, up from US$7.07 billion a year earlier. This is down from the net debt of $5.92 billion recorded at the end of December.

IGT Chief Financial Officer Max Chiara said the group’s first quarter performance “marks excellent progress on the [firm’s] profitable growth trajectory.

“The benefits we are realizing through continued discipline in cost and cash flow management are evident in profit margins that are among the highest in the past three years and significantly lower interest expense,” said he added.

In January, IGT announced a leadership reshuffle. The move came shortly after the announcement of a thoughtful list of its digital and betting business.

In April, outside the reference period, IGT announced an agreement to acquire iSoftBet, for approximately 160 million euros ($168.8 million) in cash. iSoftBet is an online and mobile casino game provider and third-party game aggregator. The transaction is expected to close in the second quarter of 2022, the suitor said in Tuesday’s statement.

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