Global gaming supplier International Game Technology (IGT) has issued its outlook for 2022, estimating revenue of between US$4.1 billion and US$4.3 billion – slightly exceeding its expected result for 2021.
The forecast, introduced ahead of a virtual investor day on Tuesday, also included a range of financial goals through 2025 including revenue of between US$4.6 billion and US$5 billion in 2025, reflecting a mid-single-digit compound annual growth rate.
IGT said it expects to achieve cash from operations ranging from US$850 million to US$1 billion in 2022 and cumulative cash from operations of around US$4 billion from 2022 to 2025, with free cash flow of approximately US$2.4 billion in that time. It also plans to reduce net debt leverage from 3.5x to 4.0x in 2022 to a range of 2.5x to 3.5x across the investment cycle, “targeting the lower part of the guidance range by 2025.”
Strategic initiatives over the next four years will focus on leveraging innovation in content and solutions as well as leading market positions to expand market share, support customer sales growth, and capture new market opportunities; utilising its large IP portfolio and leading investment in research and development to create best-in-class games, systems, and solutions; and achieving margin improvement via operational excellence and structural cost reductions.
The company’s new OPtiMa 2.0 cost-reduction program is expected to deliver more than US$150 million in incremental savings, compared to pre-pandemic levels, by the end of 2023, IGT said, with operating margin to grow from between 20% and 22% in 2022 to between 25% and 29% by 2025.
“IGT’s industry leadership is built on a legacy of innovation and trust. Through greater player engagement, responsible management and best-in-class content, services and solutions, we are well-positioned for profitable growth,” said IGT’s CEO, Marco Sala.
“Our diverse portfolio aligns with attractive end-markets and our strategy is to grow, innovate and optimize. Over the next four years, we are confident we can deliver accelerating organic growth, significant margin expansion and robust free cash flow to drive stakeholder value and increased shareholder returns.”
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