IGT Plc’s board announced to markets that, as of this morning, the NYSE technology group will operate exclusively as a lottery systems technology provider.
IGT expects to complete the sale of its Gaming & Digital business to Apollo Global by the end of Q3 in 2025. On July 26, IGT accepted a $4.05 billion offer from New York private equity fund Apollo Global to acquire its Global Gaming and PlayDigital units. This buyout is part of Apollo Global’s $6.3 billion transaction, which aims to merge IGT’s gaming and digital units with fintech partner Everi Holdings, bringing them under Apollo’s private ownership.
In its Q3 trading update, IGT marked this quarter as the first reporting period in which it classifies the Gaming & Digital business results as discontinued operations.
Revenue from lottery operations during this period reached $587 million, reflecting a 2% decline compared to last year’s $601 million. A breakdown of the lottery unit shows that service revenues brought in $566 million, with product sales contributing an additional $20 million. On a year-to-date basis, IGT’s lottery revenues stand at $1.86 billion, consistent with 2023 figures.
Q3 accounts include a $38 million restructuring charge from the “OPtiMa 3.0” program, which IGT launched to optimize general and administrative functions. Operating income dropped to $110 million, down from $163 million in Q3 of 2023.
Adjusted EBITDA decreased by 6% to $264 million (Q3 2023: $279 million), with IGT citing tough year-on-year comparisons and noting that multi-state U.S. jackpots generated higher margins in 2023. IGT also recorded a foreign exchange loss of $39 million, contrasting with FX gains of $36 million in the previous year due to EUR/USD exchange rate fluctuations affecting euro-denominated debt notes.
Net income for the period stands at $43 million, a 65% drop from the $123 million recorded in the prior year, while IGT maintains cash equivalents of $501 million. Accounts further reveal that IGT incurred a $38 million restructuring charge ($27 million after tax) during Q3, resulting primarily from a planned reduction of approximately 3% of the global workforce.
“Our third-quarter and year-to-date performance highlights the strength and resilience of our business model, characterized by scale, attractive margins, and strong cash generation,” said Vince Sadusky, CEO of IGT.
“Over the first nine months, we generated $1.9 billion in revenue, driven by consistent growth in Italy and improving third-quarter trends in the U.S. We’re excited to build on this solid foundation, transforming into a leaner, more focused global lottery provider that can capitalize on industry opportunities,” he added.
Year-to-date adjusted EBITDA stands at $880 million, with an EBITDA margin of 47.3%, slightly down from 48.6% last year. The IGT board remains committed to reducing its corporate net debt of $5.2 billion, targeting a $2 billion reduction upon completing the sale of the Gaming & Digital business. The company aims to align future debt leverage at 2.6x adjusted EBITDA from continuing operations.
Looking ahead, IGT forecasts $40 million in annualized cost savings by the end of 2026, with roughly half expected by the end of 2025.
“Continuing operations primarily drove cash flow generation over the first nine months,” noted Max Chiara, CFO of IGT. “We’re enhancing IGT’s value going forward through a low leverage profile and a cost optimization initiative that will help right-size the organization while supporting long-term growth.”