Global gaming supplier IGT reported a 4% year-on-year increase in Adjusted EBITDA to US$449 million in the three months to 31 March 2023, describing both its profitability and EBITDA margin of 42.3% as being among the highest levels in company history.
The improved result, aided by a very slight rise in group-wide revenue to US$1.06 billion, came on the back of 8% growth in global lottery same-store sales and double-digit revenue growth in Global Gaming and PlayDigital.
Global gaming saw a 17% increase in revenue to US$381 million on both service and product sale revenue streams, with record first quarter unit shipments and average selling prices, the company said.
Likewise, PlayDigital revenue also increased by 17% year-on-year, primarily driven by iCasino with contributions from its iSoftBet acquisition and organic growth, partially offset by higher jackpot expense.
However, IGT’s net income of US$67 million was down from US$117 million in 1Q22, impacted by income tax provisions and a US$26 million foreign exchange loss.
Net debt was slightly reduced from US$5.2 billion to US$5.1 billion for the quarter, with net debt leverage also down from 3.1x to 3.0x.
“Our first quarter results exceeded expectations and put us firmly on track to achieve our full-year outlook,” said IGT’s CEO, Vince Sadusky.
“Compelling innovation and sustained strength in customer and player demand are fueling momentum across our Global Lottery, Global Gaming and PlayDigital segments. This is clear in the excellent key performance indicators achieved in the quarter.
“We believe the focused execution of our strategy to Grow, Innovate, and Optimize should create significant value as we progress toward our 2025 goals.”
Chief Financial Officer Max Chiara added, “The strong start to the year includes significant cash flow generation and further improvement in our credit profile. “The continued improvement in net debt leverage reinforces our conviction in accomplishing the lower end of the 2.5x to 3.5x target range by 2025.
“We are focused on enhancing our financial flexibility, being operationally agile, and remaining disciplined with costs, all of which should enable the achievement of our 2025 margin and cash flow targets even in the current uncertain macroeconomic context.”
