International Game Technology Plc (IGT) has experienced a drop in revenue, reporting $583m in the first quarter of 2025 compared to $661m the year prior.
The group primarily put this figure down to higher US multi-state jackpot activity in 2024, as well as associated LMA incentives and multi-year central system software licenses and terminal sales.
IGT also attributed the change to instant ticket and draw wager-based revenue being impacted by calendar shifts, and higher instant ticket printing.
“Global sales of instant ticket and draw games continue to expand, driven by a steady pipeline of game innovation and portfolio optimisation strategies,” highlighted Vince Sadusky, CEO of IGT.
“While the world is currently faced with great uncertainty, we are excited about the initiatives we are working on to drive sustainable, long-term growth and shareholder value.”
However, most notably, income from continuing operations only cost $8m compared to $116m in 2024. Similarly, operating income dropped by 37% to $138m.
A lower income was driven by foreign exchange loss versus foreign exchange gain in the prior year. It was also partially offset by reduced interest expense and provision for income taxes.
Meanwhile, adjusted EBITDA stood at $250m compared to $327m. The company explained that there was high profit flow-through from elevated US multi-state jackpot sales and associated LMA incentives in the prior year. There was also higher terminal sales.
New look business comes at a cost
IGT has made several investments to drive sustainable long-term growth, which could account for the drop. It has also had to pay for rebranding costs associated with separating Lottery from Gaming and Digital.
It was in November last year that IGT Plc’s board announced to markets that the NYSE technology group would operate exclusively as a lottery systems technology provider.
IGT expected to complete the sale of its Gaming and Digital business to Apollo Global by the end of Q3 in 2025, and on 26 July 2024, the firm accepted a $4.05bn offer from New York private equity fund Apollo Global to acquire its Global Gaming and PlayDigital units.
This buyout was part of Apollo Global’s $6.3bn transaction, which aimed to merge IGT’s gaming and digital units with fintech partner Everi Holdings, bringing them under Apollo’s private ownership.
Moreover, as per IGT’s latest financial report, the company experienced diluted loss per share from continuing operations of $0.11 compared to $0.35 in the prior year as well as adjusted diluted earnings per share from continuing operations of $0.09 compared to $0.28 in the prior year.
Finally, IGT revealed net debt of $5bn with an approximate $130m impact from fluctuations in the EUR/USD exchange rate.
Max Chiara, CFO of IGT, concluded that first quarter profit was “in line with expectations” at constant currency whilst delivering strong cash conversion.
“Given lower US multi-state jackpot activity and the current worsening macroeconomic environment, we believe it is likely we will be at the low end of the full-year revenue and Adjusted EBITDA guidance provided in February,” Chiara added.
“With a solid financial profile and ample liquidity in advance of important contract renewals, we remain well-positioned for the future.”