International Game Technology (IGT) has reported an 8% year-on-year increase in Adjusted EBITDA to US$433 million in the three months to 30 September 2023, aided by a 270-basis point improvement in margins to 40.7% and strong growth in its Global Gaming segment.
While revenue for the period remained largely flat year-on-year at US$1.07 billion – in part due to the sale of its Italian commercial services business – Global Gaming enjoyed an 8% increase in revenue to US$409 million, primarily driven by growth in the installed base and higher system and software sales. Online arm PlayDigital was also up by 1% to US$55 million, with the improvements in gaming and digital enough to counter a 4% decline in Global Lottery revenue to US$601 million.
Group-wide operating income increased by 13% year-on-year to US$239 million.
“The strength of our leadership positions across Global Lottery, Global Gaming, and PlayDigital is evident in our third quarter and year-to-date results,” said IGT’s CEO, Vince Sadusky.
“Excellent momentum in key performance indicators is driving revenue growth and even stronger profit expansion. With a compelling pipeline of innovative products and solutions showcased at recent tradeshows, I am confident we can achieve our near and medium-term goals as we focus on unlocking the intrinsic value of IGT’s market-leading assets.”
IGT also revealed that its net debt had increased from US$5.2 billion at 31 December 2022 to US$5.3 billion, however net debt leverage had narrowed to from 3.1x to 3.0x during the same period.
“We are pleased with the financial results we delivered in the third quarter, including top-line growth, margin expansion, and strong cash flow generation,” said Chief Financial Officer, Max Chiara.
“Our financial position is solid with net debt leverage at a historical low point and already comfortably within our long-term target range, which coupled with no meaningful near-term debt maturities and access to significant liquidity, greatly enhances our balance sheet and creates additional financial flexibility.”
