Closing down what has been a robust year for the firm, International Game Technology Group Plc (IGT) has showcased strong financial performance as it transforms into a pure-play lottery business.
Full-year trading saw the technology supplier firm achieve $2.5bn in corporate revenues, matching the individual performance of its lottery unit for FY23.
H2 trading saw the company revise its corporate accounts due to the planned sale of its Gaming & Digital segment to Apollo Global Management.
Pure play lottery operations brought a full-year Adjusted EBITDA of $1.17bn, with a margin of 46.6% (2023: 48%). IGT consolidated cash stood at $1.03bn (FY23: $1.04bn) – consisting of $659m in consolidated cash flow and $689m from continuing operations.
Revenue growth was mainly driven by instant ticket and draw games sales in the key markets of the US, Canada and Italy.
IGT saw a 4.1% YoY growth in Italian same-store game sales, accompanied by a revenue increase in European ‘non-wager-based service contracts’.
Growth in Europe was offset by FY2023 US multi-state jackpot activity and ongoing business costs relating to staff expenses and commercial contract renewals.
Full-year operating income stood at $686m (2023: $752m), directly impacted by restructuring costs. Additionally, income from continued operations saw a slight full-year increase (FY24: $271m) compared to the previous year (FY23: $265m).
Annual net debt for the whole year was $4.8bn (2023: $5.2bn), positively impacted by fluctuating EUR/USD exchange rates. Results also saw IGT committing to a further debt reduction of $2bn from the closing of its Gaming & Digital business.
Vince Sadusky, CEO of IGT, said: “2024 was a year of momentous transformation with the conclusion of our strategic review and the announced sale of our Gaming & Digital business for $4.05bn in cash.
“Our unmatched capabilities in developing world-class Lottery solutions and innovative game content support several important investments to drive long-term growth and shareholder returns. We are well-positioned to continue strengthening our global lottery leadership.”
Revenue in Q4 was $651m, down 4% YoY from the previous corresponding period ($681m). However, Q4 2024 was the second best-performing quarter in IGT history.
Operating income for the quarter ending December was $179m (Q423: $197m). Continuing operations income stood at $116m (Q423: $73m), with a margin of 17.9% (Q423: 10.7%).
Quarterly Adjusted EBITDA was $290m (Q423: $73m) with a margin of 44.5%, with positives derived from an increased investment in growth initiatives.
Cash liquidity for FY24 was capped at $1.9bn, consisting of $584m in unrestricted cash reserves and an additional $1.4bn borrowing capacity.
Max Chiara, CFO of IGT, commented: “We delivered solid financial results in 2024, including robust cash flow generation to invest in the business, reduce debt, and return capital to shareholders.
“Our core, recurring business has a compelling low-to-mid single digit growth profile and provides a solid foundation as we head into our next CapEx cycle aimed at securing our portfolio and extending its duration to more than eight years.”
Looking ahead, IGT will target revenues of $2.55bn-$2.65bn for the full year, as per current ‘long-term shareholder expectations’.
The company has also recently secured key agreements to enhance its presence in the Italian lottery market, including the renewal of its Lotto concession.
Moving to strengthen its Italian business, the company has allocated €800m for the first two instalments of the new venture, which will compete to win the Italian government’s new lottery tender, initiated in March 2025.
IGT said: “The bids are due by 17 March. Once they are in, the awarding commission will be established. There are no specific dates for the [licence] awarding but we expect it to happen in Q2.
“The time between the award and the new licence needs to allow for the transition of the infrastructure. The first payment will be €500m at the time of the award in Q2, and the second €300m in November Q4.”