International Game Technology PLC (IGT) has published its financial report for Q2 of FY2021, revealing total revenues surpassed $1bn for the quarter ending June 30.
Global lottery revenue rose 58% to $725m, driven by 35% growth in same-store sales, whilst global gaming revenues totalled $316m, up 126% from the same period last year.
As a result, total revenues amounted to $1.04bn, a 74% increase from Q2 FY2020 and the second-highest level of revenue for a single quarter in the firm’s history.
Meanwhile, the rise in revenue resulted in IGT returning to making a profit, an improvement on the $72m loss in Q2 FY2020. It made a total operating profit of $244m for the period.
The firm attributes the success of the period to the recovery of the gaming industry following the reopening of many physical stores across the globe after COVID-19 lockdowns. Furthermore, the sale of an Italian B2C gaming business helped to liquidate assets and bolster revenues.
IGT CEO, Marco Sala, commented: “Impressive second quarter results highlight the vitality of our portfolio.
“Outstanding lottery performance, the progressive recovery in land-based gaming, and strong increase in digital & betting activities drove substantial revenue and profit growth, delivering Adjusted EBITDA that is among the highest recorded in a quarterly period. On the strength of the first half performance, we are raising our outlook for the year and now expect to exceed 2019 levels for key financial metrics this year.”
The firm made significant moves in the lottery industry throughout the year as it attempts to position itself as a market leader.
It recently partnered with Washington Lottery to provide cashless solutions for thousands of lottery vending machines across the state.
Furthermore, IGT was awarded a long-term contract by Maryland Lottery in April to connect 11,500 Video Lottery Terminals and Electronic Table Games across six casinos statewide.
Additionally, it successfully implemented an Extension and Amendment agreement in July, saving $65m in interest payments per year, improving the company’s liquidity and aiding cash flow reserves.
Max Chiara, CFO of IGT, added: “Record free cash flow from continuing operations and proceeds from recent asset sales fueled significant debt reduction in the first half.
“Our leverage profile improved substantially, reaching pre-pandemic levels well ahead of expectations, and improving our credit profile and overall financial condition.”