Loading...
01/12 20:39
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call reveals several negative factors: missed EPS expectations, macroeconomic uncertainties, and regulatory risks. Despite a strong cash conversion ratio and planned debt reduction, revenue and EPS declines alongside unclear guidance and management responses create uncertainty. The market may react negatively due to these issues, compounded by potential consumer spending impacts and supply chain challenges. The $4.05 billion cash infusion and iLottery growth are positive, but insufficient to offset broader concerns. Given the market cap, these factors suggest a negative stock price movement of -2% to -8%.
Earnings Per Share (EPS) $0.13 EPS, down from $0.14 EPS year-over-year.
Revenue $583 million, down from $661 million year-over-year, primarily due to lower levels of jackpot activity and associated LMA incentives.
Adjusted EBITDA $250 million, consistent with expectations, reflecting a margin of 43%.
Cash from Operations $168 million, with a cash conversion ratio of 67%.
Free Cash Flow $92 million.
Net Debt $5 billion, increased by $270 million from the end of December 2024.
Pro Forma Net Debt Leverage 2.8x, in line with target after accounting for committed debt reduction.
Liquidity Buffer $2.2 billion at the end of the first quarter.
iLottery Sales Growth 26% increase year-over-year.
Normalized Same-Store Sales Growth 1.4% increase in global same-store sales.
New Game Launches: The Mega Millions moved to a $5 price point in early April, introducing new features and enhancements expected to drive increased sales.
iLottery Sales Growth: iLottery sales rose 26% in Q1, with significant contributions from new e-instant game launches.
New Instant Ticket Games: New $25 and $40 games launched in California, and additional $20 and $30 tickets in Florida contributed to sales.
myLottery Site Launch: Launched in Italy, allowing players to access Lotto and Scratch and Win, increasing market share.
Market Expansion: Expansion of retail touchpoints through self-service lottery vending machines and in-lane purchasing initiatives.
iLottery Penetration: Increased iLottery penetration in the U.S., particularly in Kentucky and Georgia.
Production Capacity Expansion: New printing press launched in April, increasing capacity by over 50%.
Cash Generation: First quarter cash conversion ratio of 67%, delivering $168 million in cash from operations.
Strategic Focus Areas: Key areas include expanding retail touchpoints, optimizing the point-of-sales network, and transitioning to cloud-based solutions.
Debt Management: Successfully issued a new EUR 1 billion term loan to establish a liquidity buffer ahead of the Italy lotto license award.
Earnings Expectations: International Game Technology PLC missed earnings expectations with a reported EPS of $0.13, below the expected $0.14.
Macroeconomic Uncertainty: The company faces significant macroeconomic and geopolitical uncertainty, including the impact of tariffs and declining consumer confidence, which could fuel fears of a recession.
Jackpot Activity Variability: The lack of large U.S. multi-state jackpots has negatively impacted revenue, with no billion-dollar jackpots in Q1 2025 compared to multiple in the prior year, leading to a year-over-year revenue decline of $45 million.
Regulatory Risks: The ongoing process for the Italy Lotto license poses regulatory risks, with the evaluation of proposals expected to be announced soon.
Supply Chain Challenges: The transition from satellite to cellular communications for the point-of-sales network may face challenges in implementation and adaptation to new technologies.
Consumer Spending Impact: The worsening macroeconomic environment raises concerns about the potential impact on consumer spending, which could affect lottery sales.
Cash Flow and Debt Management: The company anticipates a cash use of about $350 million due to the upfront license fee for the Italy lotto, which may strain cash flow.
Product Innovation: IGT is focusing on product innovation, highlighted by the Mega Millions move to a $5 price point, which includes new features aimed at increasing sales and revenues.
Retail Touchpoints Expansion: IGT is expanding retail touchpoints through self-service lottery vending machines, in-lane purchasing solutions, and optimizing the point-of-sales network.
iLottery Adoption: IGT is investing in increasing iLottery adoption through faster eInstant game developments and transitioning customers to a cloud-based solution.
New Printing Press: A new printing press was launched in April, expanding capacity by over 50% to enhance customer service and production efficiency.
Italy Lotto License: The Italy Lotto license process is underway, with proposals to be opened on May 19th, and results of the technical evaluation expected prior to that date.
Gaming and Digital Assets Sale: The sale of gaming and digital assets is on track to close in Q3, with capital allocation strategy to be communicated post-Lotto outcome.
2025 Revenue Guidance: Full year 2025 revenue is expected to be approximately $2.55 billion, at the low end of previous outlook ranges.
2025 Adjusted EBITDA Guidance: Adjusted EBITDA for 2025 is projected at $1.1 billion, reflecting headwinds from jackpots and LMA incentives.
Q2 2025 Revenue Guidance: Second quarter 2025 revenue is expected to be flat to up slightly, with adjusted EBITDA forecasted to be down approximately $30 million.
Cash from Operations: Cash from operations is now expected to be a use of cash of about $350 million, primarily due to the Italy lotto upfront license fee.
Net Debt Leverage: Pro forma net debt leverage is expected to be 2.8x after the committed $2 billion debt reduction following the sale of gaming and digital.
Shareholder Return Plan: IGT intends to communicate its capital allocation strategy after the outcome of the Italy Lotto license is known and around the gaming and digital asset sale closing.
Cash from Operations: First quarter cash generation from continuing operations was strong, with a cash conversion ratio of 67%, delivering $168 million in cash from operations and free cash flow of $92 million.
Debt Management: A $4.05 billion gross cash infusion is expected upon the completion of the gaming and digital sale.
The earnings call reveals several negative factors: missed EPS expectations, macroeconomic uncertainties, and regulatory risks. Despite a strong cash conversion ratio and planned debt reduction, revenue and EPS declines alongside unclear guidance and management responses create uncertainty. The market may react negatively due to these issues, compounded by potential consumer spending impacts and supply chain challenges. The $4.05 billion cash infusion and iLottery growth are positive, but insufficient to offset broader concerns. Given the market cap, these factors suggest a negative stock price movement of -2% to -8%.
The earnings call reveals several negative factors: declining revenue, macroeconomic uncertainties, and regulatory risks. The Q&A section highlights concerns about jackpot dependency and unclear responses about price resistance. Despite strong iLottery sales and stable EBITDA, the negative factors outweigh the positives. The significant debt increase and liquidity concerns further contribute to a negative sentiment. With a market cap of $4 billion, the stock is likely to react negatively, predicting a stock price movement of -2% to -8%.
The earnings call reflects mixed signals: positive revenue growth and cash flow, but decreased EBITDA and operating income. The withdrawal of full-year guidance and management's vague responses in the Q&A add uncertainty. However, the $4.05 billion sale and debt reduction are positives. Given the market cap, these factors suggest a neutral stock price movement over the next two weeks.
The earnings call summary shows stable financial performance with strong gaming and digital growth, offsetting slight declines in lottery revenue. The Q&A section reveals optimistic guidance, particularly in international markets and iLottery potential. The sale to Apollo strengthens financial health, enabling debt reduction and shareholder returns. Despite some unclear management responses, the overall sentiment is positive, supported by strong cash flow, low debt leverage, and strategic growth plans. Market cap suggests moderate sensitivity, leading to a positive stock price prediction.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
