IGT Plc states that it commenced 2023 trading in a position of strength, having reduced its long-term corporate debt and achieved group-wide revenue growth.

This was despite the firm’s largest vertical, Global Lottery, recording small declines in revenue throughout the year, offset by the sale of its Italian B2C subsidiary and gains made by the Global Gaming and PlayDigital units.

The group outlined that total revenue rose by 3% for the full year to $4.3bn (2021: $4bn), and by 4% year-on-year in the final quarter from $1bn to $1.1bn, with both figures driven heavily by Global Gaming and PlayDigital operations.

EBITDA, meanwhile, declined by 1% for the full 12 months to $1.6bn ($1.7bn), but rebounded in the last three months of the year to achieve a Q4 standing of $413m, up 8% from $387m.

Notably, 2022 saw IGT unload its Italian sports betting, gaming machine and digital gambling business, with proceeds from the sale used to reduce net debt whilst streamlining groups-ide operations.

As it stands, IGT closed 2022 with net debt of $5.1bn, a 13% reduction on 2021 debts of $5.9bn, although free cash flow did also fall by 43% in Q4 to $187m ($326m) and 25% for the full year to £582m ($771m).

Max Chiara, IGT CFO, said: “2022 was another year of significant financial accomplishments. With reduced interest expense and improvements to the effective tax rate, 2022 adjusted EPS highlights IGT’s significantly improved earnings power. 

“We generated strong cash flow while funding increased investments for future growth. This, coupled with proceeds from sales of non-core businesses, allowed us to meaningfully reduce debt and leverage to the lowest levels ever. “

The company’s enhanced credit profile and significant liquidity provide solid support and flexibility as we execute our multi-year plan.”

Breaking down IGT’s performance by segment, Global Gaming recorded the largest revenue growth rate of 28% for the full year to $1.4bn ($1.1bn) and 21% in Q4 to $389m ($321m). 

EBITDA for the vertical stood at $365m for 2022, up 111% from $173m the year prior, and also rose by 54% in the fourth quarter to $101m ($66m).

PlayDigital also experienced an uptick of 27% from £165m to £209m, accompanied by EBITDA growth of 41% to $68m ($48m), whilst Q4 revenue rose 56% to $42m ($65m) with EBITDA up 149% to $22m ($9m). 

Progress made on the above was somewhat overshadowed by a slowdown for IGT’s flagship Global Lottery product, however, which saw full year revenue fall 8% to $2.6bn ($2.8bn.

Q4 saw little recovery for the segment with revenue again decreasing year-on-year 7% to $639m ($687m). Meanwhile, full year EBITDA was marked at $1.3bn, down 15% on 2021 ($1.5bn), and in Q4 at $318m, down 5% ($336m).

However, IGT maintains that it has started 2023 in a strong commercial position, having closed 2022 reporting a group-wide steady increase in revenues, with Global Lottery’s struggles offset by the sale of the Italian business and gains for the remaining two verticals.

Of significance to its full-year results, FY2022 trading saw IGT account for foreign exchange losses of $34m, compared to its 2021 gain of $66m. The negative impacts reflected USD gains against EUR throughout the course of 2022.  

FX impacts saw IGT adjusted EBITDA stand at $1.7bn (-1%) despite the growth of Global Gaming and PlayDigital units and a lower contribution from Global Lottery Net interest expense of $289 million.

The group has particularly put faith in its operating income statistics, which showed an increase of 24% across all products in the final quarter to $230m ($186m) amd by 2% for the full year to $922m ($902m).

Benefitting from a $278m gain on the sale of Lottomatica Italia’s B2C business, Group FY2022 net income stood at $414m, up 62% on prior-year results of $225m.

Net income was further boosted by IGT lowering its tax exposure to $175m versus $274m, as the group offset a $270m accrual payment associated with its legal settlement of Double Down Interactive (DDI/Benson).

​​IGT closes its 2022 accounts achieving a ‘corporate record’ of delivering shareholders returns of $276m – to be paid in “$161m deployed in dividends to shareholders and $115m for share repurchases”.

“We achieved all our financial goals last year while strengthening product leadership positions across our Global Lottery, Global Gaming, and PlayDigital activities,” said Vince Sadusky, CEO of IGT. 

“”Important strategic work executed over the last few years has transformed IGT into a company with higher growth prospects, a better profit profile, and a solid path to delivering on our long-term goals. 

“It has also enabled record capital returns to shareholders in 2022. We enter 2023 from a position of strength with good momentum across business segments.”