International Game Technology PLC (IGT) has published its financial results for the first quarter of 2021, during which it achieved a 25% growth in total revenue year-on-year thanks to an impressive global lottery return.
For the Q1 period which ended on March 31, 2021, IGT reported total revenue of $1,015m, a 25% increase on 2020’s Q1 total revenue of $814m, and one of the highest Q1 returns in the company’s history.
According to the firm, the improvement was driven largely by gains made in its global lottery business. The vertical’s total revenue for the quarter came in at $749m, a 48% rise when compared to the previous year (Q1 2020: $505m).
The growth in global lottery also helped to mitigate the loss in IGT’s global gaming sector, as its total revenue for the period only reached $266m, down 14% on the previous year (Q1 2020: $310m).
However, the firm clarified that its gaming revenue did improve upon the previous quarter’s results (Q4 2020: $255m) thanks to the continued recovery of the US markets.
CEO Marco Sala commented: “We delivered some of our strongest profit results ever during the first quarter, fueled by robust player demand and significant, structural cost savings.
“Our global lottery segment achieved record same-store sales levels on impressive increases around the world. The global gaming segment is demonstrating swift, progressive recovery, including accelerated momentum for Digital & Betting activities. We expect to return to 2019 levels for key financial metrics this year.”
IGT recorded an operating income for Q1 2021 of $260m, versus Q1 2020’s $218m. The firm noted the improvement was down to global lottery same-store sales growth translating into high-profit flow-through, as well as benefits from OPtiMa structural cost-savings, and goodwill impairment of $296m in the prior-year period.
The firm’s net interest expense of $94m compared to $100m in the prior year. Meanwhile, it noted a provision for income taxes of $148m, compared to a benefit from income taxes of $1m in the prior year thanks to higher valuation allowances on deferred tax assets in the current period and income taxes paid of $4m versus $11m in the prior year.
Net income was $92m versus a net loss of $248m in the prior-year period, with the company stating this was after-tax goodwill impairment of $296m in the prior-year period and higher non-cash foreign exchange gains, primarily on Euro-denominated debt instruments in the current period.
The firm recorded a net income per diluted share of $0.38 compared to a net loss per diluted share of $1.28 in the prior year. It also reported an Adjusted EBITDA of $450m compared to $261m in the prior-year period, with global lottery achieving among the highest segment-level adjusted EBITDA of $447m.
CFO Max Chiara said: “With the recovery in our business in full swing, we are delivering strong operating leverage which, when coupled with invested capital discipline, drove strong cash flows in the quarter.
“This enabled us to accelerate our debt retirement strategy and gives us confidence in a return to pre-pandemic leverage levels by the end of the current year.”