Global gaming supplier IGT reported a slight 1% decline in group-wide revenues to US$1.05 billion in the three months to 30 June 2024, impacted by a decline in its core lottery business. However, Gaming & Digital – a segment that will soon be divested to form part of a newly merged entity involving Everi Holdings Inc – saw revenues climb by 16% to US$436 million with IGT citing an installed base growth with resilient yields and elevated intellectual property and software license sales.
As reported by IAG, IGT’s Gaming & Digital segment and Everi will be acquired by Apollo Global Management in a massive US$6.3 million deal, of which IGT will receive US$4.05 billion in gross proceeds.
IGT’s 2Q24 results included a 5% year-on-year decline in Adjusted EBITDA to US$420 million, driven by a 6% decline in Adjusted EBITDA in Global Lottery to US$311 million as well as higher corporate expense.
Gaming & Digital was up by 13% to US$151 million thanks in part to greater margins.
According to IGT, Adjusted EBITDA for the first six months of 2024 reached an all-time high, with the company generating over US$460 million in cash from operations and over US$260 million in free cash flow.
“IGT delivered strong first half results, including record operating income and Adjusted EBITDA net of Separation and divestiture costs,” said IGT CEO Vince Sadusky. “Consistent investments in technology, game content and other innovative solutions provide us a solid foundation to build from as we execute on our growth objectives. The recently announced sale of our Gaming & Digital business for US$4.05 billion in cash is an important step in unlocking the intrinsic value of IGT’s best-in-class businesses.”
CFO Max Chiara added, “We generated over US$460 million in cash from operations in the first half of the year and our balance sheet is as strong as ever. Our ample liquidity and manageable near-term debt maturities provide us significant flexibility in light of upcoming investments to extend and secure our long-term lottery contract portfolio for the coming years.”
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