IGT Reports $1.05 Billion in Q2 Revenue

Challenging Q2

The second quarter of 2024 proved to be quite challenging for IGT. Although consolidated revenue matched last year’s figures at $1.06 billion, other financial indicators declined.

In addition to a 5% decrease in total adjusted EBITDA, IGT also reported an 8% drop in operating income from $251 million to $230 million. However, after excluding $26 million in separation and divestiture costs, operating income rose to $256 million.

However, there were also positive developments. Net debt decreased by 5% to $5.1 billion, and several segments of the company experienced revenue growth.

Revenue Breakdown

Global Lottery revenue stood at $613 million, experiencing a slight 2% decrease year-over-year due to a software license sale in the previous year.

In contrast, Gaming & Digital revenue increased by 1% to $436 million, driven by growth in the installed base and higher intellectual property and software license sales. Segment saw an increase in operating income to $103 million, reflecting a 300 basis point expansion in operating income margin to 23.7%.

IGT has also generated over $460 million in cash from operations in the first half of the year. “Our balance sheet is as strong as ever,” said Max Chiara, CFO of IGT. “Our ample liquidity and manageable near-term debt maturities provide us significant flexibility in light of upcoming investments to extend and secure our long-term lottery contract portfolio for the coming years,” added Chiara.

Strategic Divestitures and Investments

“IGT delivered strong first half results, including record operating income and Adjusted EBITDA net of Separation and divestiture costs,” said Vince Sadusky, CEO of IGT.

“Consistent investments in technology, game content, and other innovative solutions provide us a solid foundation to build from as we execute on our growth objectives. The recently announced sale of our Gaming & Digital business for $4.05 billion in cash is an important step in unlocking the intrinsic value of IGT’s best-in-class businesses,” concluded Sadusky, referring to the recent acquisition of the gaming and digital segment by Apollo Global Management.

IGT has also secured several key contracts, including a seven-year facilities management contract with the Colorado Lottery and a five-year iLottery content contract with the Atlantic Lottery Corporation.