Global gaming supplier IGT has reported a 3% year-on-year increase in consolidated revenues to US$1.13 billion in the December 2023 quarter, up from US$1.09 billion a year earlier and from US$1.07 billion in 3Q23.
The improved performance was entirely off the strong performance of the company’s Global Lottery segment, where revenues grew by 7% year-on-year to US$681 million, driven by strong product sales and Italy same-store sales growth, the company said.
By comparison, Global gaming revenues remained flat at US$390 million, with higher terminal product sales revenue and increased intellectual property revenue offset by lower systems sales, while PlayDigital fell by 10% year-on-year to US$59 million due to a one-time benefit related to jackpot expense in the prior year and lower sports betting volumes and hold rates in Rhode Island in the current year.
Operating income of US$256 million was up 11% year-on-year with Adjusted EBITDA up 9% year-on-year and 5% quarter-on-quarter to US$454 million. Net income of US$27 million also reversed a US$31 million net loss in 4Q23.
For FY23, consolidated revenues grew by 2% over 2022 to US$4.3 billion with both Global Gaming (US$1.6 billion) and PlayDigital (US$228 million) exhibiting strong year-on-year growth but Global Lottery declining by 2% to US$2.5 billion.
IGT recorded an all-time high in Adjusted EBITDA of US$1.8 billion in 2023, up 7%, although net income decline from US$414 million a year earlier to US$307 million.
Net debt of US$5.1 billion was slightly lower than the US$5.2 billion owed as of 31 December 2022.
“We delivered a strong finish to the year in the fourth quarter, propelling full year 2023 profits to record levels,” said IGT’s CEO, Vince Sadusky.
“A compelling array of products and solutions fueled broad-based momentum in key performance indicators, driving margin improvement across our Global Lottery, Global Gaming, and PlayDigital segments. We believe the recent determination to split the business and create separate lottery and gaming pure play companies, each with experienced management teams and simplified business models, better positions each company to service customers and create significant value for stakeholders.”
IGT recently announced that its Global Gaming and PlayDigital businesses would merge with leading fintech and loyalty solutions provider Everi Holdings under a new multi-billion dollar deal expected to take place later this year.
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