International Game Technology PLC Reports Third Quarter 2024 Financial Results
LONDON, Nov. 12, 2024 /PRNewswire/ -- International Game Technology PLC (NYSE: IGT) reported its financial results for the third quarter ending September 30, 2024. This marks the first quarter in which the results of the Gaming & Digital business have been classified as discontinued operations due to its announced sale.
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 | YoY Change | Consensus Estimate |
|---|---|---|---|---|
| Total Revenue | $587M | $601M | -2.3% | $591.5M |
| Operating Income | $110M | $163M | -32.5% | N/A |
| Adjusted EBITDA | $264M | $279M | -5.4% | N/A |
| Adjusted EBITDA Margin | 44.9% | 46.4% | -1.5 ppts | N/A |
| Net Income | $43M | $123M | -65% | N/A |
| Diluted EPS from Cont. Ops. | -$0.39 | $0.23 | -269.6% | $0.21 |
| Adjusted Diluted EPS | -$0.02 | $0.04 | -150% | N/A |
Interpretation: Despite challenges including foreign exchange losses and restructuring charges, IGT maintained significant profitability with an Adjusted EBITDA margin of 44.9%, highlighting the robust nature of its pure-play lottery business.
Revenue Performance by Segment
| Segment | Q3 2024 Revenue | YoY Change | Comments |
|---|---|---|---|
| Italy | Growth reported | 2.7% | Strong same-store sales growth |
| U.S. Lottery | Improved trends | N/A | Renewed growth in instant tickets |
| Other Services | Upward trend | N/A | Boost from non-wager contracts |
Interpretation: IGT's core operating areas, particularly in Italy and U.S. lottery metrics, indicate a healthy business model, with positive momentum seen in same-store sales and contractual services.
Operational Highlights
- Announced the $4.05 billion sale of its Gaming & Digital business.
- Renewed a 10-year facilities management contract with the North Carolina Education Lottery.
- Secured a three-year instant ticket printing contract with Portugal’s national lottery.
- Issued €500 million Senior Secured Notes, forthcoming redemption of $500 million Notes.
Executive Comments
Vince Sadusky, CEO, highlighted the enduring strength and redefined scope of IGT as it pivots to a primary focus on the global lottery sector. Max Chiara, CFO, reinforced the strategic shifts underpinned by continued profitability and future initiatives poised to optimize operational efficiencies.
Dividends and Share Repurchase Program
The Board declared a quarterly cash dividend of $0.20 per share, payable on December 10, 2024, to shareholders on record as of November 26, 2024. No new share repurchase program was announced in this quarter.
Forward Guidance
IGT forecasts Q4 2024 revenues between $640 million and $690 million, with Adjusted EBITDA from $280 million to $300 million. For FY 2024, expected revenues are projected at $2.50 to $2.55 billion, alongside Adjusted EBITDA between $1.16 and $1.18 billion.
Stock Price Movement
Following the earnings release, IGT's stock experienced a modest increase of 1.47% in trading activity, reflecting investor confidence in its strategic realignment and financial stability.
This earnings report reaffirms IGT’s strategic focus on streamlining operations and optimizing its business model around its high-margin lottery segment, which positions the company for sustainable long-term growth in the gaming industry.
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