IGT Reports Resilient Q3 2024 Performance Amid Restructuring and Strategic Optimizations

IGT reported strong Q3 2024 results, with $587 million in revenue despite a slight year-over-year decline. Key achievements include a strategic restructuring, debt reduction, and securing significant contracts, positioning the company for continued growth in its core lottery business.

Revenue Decline Offset by Strong Performance in Core Markets

In its Q3 financial results, IGT reported revenues of $587 million, a 2% decline year-over-year, largely due to a slowdown in the gaming segment. Despite this decrease, strong performance in Italy and increased sales in the US lottery segment highlighted IGT’s resilience.

Operating income reached $110 million, down 33% year-on-year, reflecting the impact of ongoing internal restructuring efforts. Adjusted EBITDA was $264 million, with a 44.9% EBITDA margin, underscoring the solid profitability of IGT’s core lottery operations.

IGT closed Q3 with a robust cash position of $501 million, up 4% year-over-year. Additionally, the company reduced its outstanding debt by 3%, bringing it to $5.15 billion, further strengthening its balance sheet.

Looking ahead, IGT forecasts Q4 revenue between $640-690 million and adjusted EBITDA between $280-300 million. For the full year, the company expects revenue of $2.5-2.55 billion and adjusted EBITDA of $1.16-1.18 billion.

Key Highlights and Strategic Moves in Q3

Significant developments in Q3 included the classification of IGT’s Gaming & Digital business as discontinued operations, following the division’s announced $4.05 billion sale to Apollo Global Management, expected to conclude by Q3 2025. Additionally, IGT secured several key contracts:

10-year facilities management contract extension with NC Education Lottery.
Three-year instant ticket printing contract with Portugal’s national lottery.
Three-year contract with FDJ for instant ticket printing.

The company also issued EUR 500 million in Senior Secured Notes due 2030 to support its strategic initiatives and launched OPtiMA 3.0, a program aimed at optimizing operational efficiency.

Leadership Insights on the Quarter

CEO Vince Sadusky praised IGT’s results, noting that the company generated $1.9 billion in revenue in the first nine months of the year, reflecting strong momentum in key markets.

“We are excited to build upon a solid foundation as we transform into a leaner, more focused global lottery pure play,” he said.

CFO Max Chiara emphasized that ongoing operations continue to drive cash flow and that recent cost optimizations and reduced leverage enhance the company’s long-term value.