IGT Reports Revenue and Operating Income Decline in 2024 but Reduces Net Debt
IGT has released its financial results for 2024, showing a 1% drop in revenue and a 9% decline in operating income. Despite this, the company improved its net debt position and saw continued strength in its lottery segment. With the planned sale of its Gaming & Digital division, IGT is focusing on long-term financial stability.
Q4 2024 Performance
In the fourth quarter, revenue fell 4% year-on-year to $651 million. The company attributed this to record product sales in the prior year. However, instant ticket and draw game sales performed well, with Italy seeing a 7% increase in same-store sales.
Despite the revenue decline, income from continuing operations rose 60% to $166 million, indicating improved efficiency. Operating income dropped 9% to $179 million, while adjusted EBITDA declined 8% to $290 million, impacted by currency fluctuations and a less favorable product mix.
Full-Year 2024 Results
For the full year, revenue stood at $2.51 billion, down 1% year-on-year. While lottery sales remained strong in the U.S., Canada, and Italy, challenges in other segments contributed to the overall decline.
Operating income fell 9% to $686 million, while income from continuing operations increased 2% to $271 million. Adjusted EBITDA dropped 4% to $1.17 billion, with a 46.6% EBITDA margin supported by the lottery business.
One of the key improvements for IGT was its net debt reduction from $5.16 billion in 2023 to $4.78 billion in 2024. This reflects a focus on cash flow management and debt reduction.
CEO and CFO Perspectives
CEO Vince Sadusky described 2024 as a transformative year, emphasizing the $4.05 billion sale of IGT’s Gaming & Digital business to Apollo Funds. The transaction, expected to close by Q3 2025, aligns with IGT’s shift toward lottery operations.
“Our unmatched capabilities in developing lottery solutions and game content support long-term growth and shareholder returns,” Sadusky stated.
CFO Max Chiara highlighted strong cash flow, which has allowed IGT to invest, reduce debt, and return capital to shareholders. He noted that the company is entering a new CapEx cycle to extend its portfolio for over eight years.
IGT expects 2025 revenue to be between $2.55 billion and $2.65 billion. With the lottery segment performing well and the Gaming & Digital divestment progressing, the company remains focused on financial stability and market leadership.