IGT Reports Revenue Decline Amid Italy Lotto License Uncertainty
International Game Technology PLC (IGT) reported a 12% year-over-year revenue drop in Q1 2025, with total revenue falling to $583 million. Lower U.S. jackpot activity, foreign exchange losses, and timing of product sales weighed on performance. Meanwhile, the company awaits a key decision on the renewal of the Italy Lotto license.
Weaker Lottery Performance Impacts Results
The first quarter saw a notable decline in global lottery revenue, with total service revenue down 10% to $557 million. Product sales also dropped by 39%, from $42 million to $26 million. The decline was most pronounced in the U.S. and Canada, where revenue fell 20%, while Italy recorded a 3% decrease and the rest of the world saw a 7% decline.
Adjusted EBITDA decreased to $250 million, down from $327 million in Q1 2024. The adjusted EBITDA margin also fell to 42.8%, compared to 49.5% a year earlier.
Italy Lotto License Remains Unresolved
In March 2025, IGT secured a €1 billion term loan due 2030. Half of the amount has already been drawn to refinance borrowings, while the remaining €500 million is contingent upon IGT being awarded the new Italy Lotto license. This major contract renewal remains a key factor in the company’s financial planning.
Net income from continuing operations dropped sharply to $8 million, compared to $116 million a year earlier. This includes a $33 million non-cash foreign exchange loss related to EUR/USD debt translation. Operating income also fell 37%, to $138 million.
Diluted EPS from continuing operations turned negative at -$0.11. Adjusted diluted EPS was $0.09, down from $0.28 last year.
Strong Cash Flow and Liquidity Maintained
Despite the earnings decline, IGT generated $168 million in cash from operations and reported free cash flow of $92 million — a 204% increase year-over-year. The company ended the quarter with $631 million in cash and $1.5 billion in unused credit facilities.
Given continued macroeconomic pressure and weak jackpot trends, IGT now expects full-year revenue of approximately $2.55 billion and Adjusted EBITDA of around $1.10 billion. It also anticipates negative $350 million in cash from operations due to the foreign exchange impact on Italy Lotto license payments.
Vince Sadusky, CEO of IGT, said:
“Global sales of instant ticket and draw games continue to expand, driven by a steady pipeline of game innovation and portfolio optimization strategies. While the world is currently faced with great uncertainty, we are excited about the initiatives we are working on to drive sustainable, long-term growth and shareholder value.”