International Game Technology (IGT) reported a 12% year-on-year decline in revenue to US$583 million and a 93% decline in income from continuing operations to US$8 million in 1Q25, with the company citing lower US multi-state jackpot activity, the impact of prior year comparisons and a challenging macroeconomic environment for the fall-off.
The results do not include IGT’s gaming and digital business which are now classified as discontinued operations ahead of the planned sale of those assets to funds managed by affiliates of private equity firm Apollo Global Management Inc later this year.
In recent guidance, IGT said it expected the gaming and digital unit to report adjusted revenue of between US$370 million and US$410 million for the first quarter, with Adjusted EBITDA of between US$120 million and US$135 million.
The company’s official 1Q25 results, released overnight, reflect its position as a pure lottery play. The company reported Q1 Adjusted EBITDA of US$250 million, down 24% year-on-year which IGT mainly attributed to tough comparisons with 1Q24. These included lower profit flow-through from US multi-state jackpot sales and lower terminal sales due to beneficial product mix in the prior year, while the company also cited incremental investments to drive sustainable long-term growth, rebranding costs associated with separating the lottery business from gaming and digital, and negative foreign currency translation.
“Global sales of instant ticket and draw games continue to expand, driven by a steady pipeline of game innovation and portfolio optimization strategies,” said IGT’s CEO, Vince Sadusky. “While the world is currently faced with great uncertainty, we are excited about the initiatives we are working on to drive sustainable, long-term growth and shareholder value.”
IGT’s CFO, Max Chiara, added, “First quarter profit was in line with expectations at constant currency and we delivered strong cash conversion.
“Given lower US multi-state jackpot activity and the current worsening macroeconomic environment, we believe it is likely we will be at the low end of the full-year revenue and Adjusted EBITDA guidance provided in February.
“With a solid financial profile and ample liquidity in advance of important contract renewals, we remain well-positioned for the future.”
IGT said it now expects revenue of approximately US$2.55 billion and Adjusted EBITDA of approximately US$1.10 billion in FY25.
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