IGT Reports Strong Q2 2023 Financial Performance
International Game Technology PLC (IGT), a global leader in the gaming industry, has reported robust financial results for the second quarter of 2023.
The company’s revenue for the quarter reached $1.06 billion, marking a 3% increase compared to the same period last year. When adjusted to exclude the impact of the Italy commercial services sale, the revenue growth was even more impressive at 11%, driven by strong key performance indicators and continued growth in player demand trends.
Operating income also saw a significant boost, rising by 10% to $251 million, with an operating income margin of 23.8%. This margin expansion across various segments contributed to a 150 basis point increase, showcasing the company’s effective cost-management strategies and operational efficiencies.
Furthermore, adjusted EBITDA increased by 8% to $443 million, with the adjusted EBITDA margin expanding by 190 basis points to 42%. These positive financial indicators demonstrate IGT’s ability to leverage its substantial investments in innovation, operational expertise, and leading-edge technology to deliver unrivalled gaming experiences for players across all channels and regulated segments.
“Our second-quarter and first-half results reflect solid revenue and profit momentum across all business segments,” said Vince Sadusky, CEO of IGT. “We achieved the high end of our outlook by executing key strategic initiatives and growing demand for IGT’s compelling content and solutions. We are solidly on track to deliver on our 2025 objectives and remain focused on unlocking the intrinsic value of IGT’s market-leading businesses.”
IGT’s strong financial performance in the first half of 2023 has led to an optimistic outlook for the full year. The company has raised its revenue and profit outlook, reflecting its confidence in its growth trajectory and strategic initiatives. As a global leader in gaming, IGT maintains a well-established local presence and strong relationships with governments and regulators in over 100 jurisdictions worldwide, adhering to the highest standards of service, integrity, and responsibility.
In addition to its financial success, IGT has achieved several significant milestones in its business operations. The company secured a 10-year brand licensing extension with Sony Pictures Television, granting exclusive rights to the legendary Wheel of Fortune brand across gaming, lottery, iGaming, and iLottery, as well as non-exclusive rights to distribute Wheel of Fortune content for free-to-play social casinos. This strategic move is expected to further enhance the company’s offerings and engage players on a global scale.
IGT has also been expanding its lottery and gaming operations through a series of contracts and agreements. The company was awarded a 20-year license, as part of a consortium, to operate certain lottery games for the Minas Gerais State Lottery in Brazil. Additionally, IGT executed 10-year contracts in Malta for lottery technology and instant ticket printing, won an eight-year iLottery contract in Connecticut, and executed a four-year transition agreement in Belgium, further solidifying its presence in key markets.
The company’s innovative approach to gaming is also evident in its new product launches. IGT launched Mystery of the Lamp on the new PeakCurve49 cabinet, offering players an engaging and immersive gaming experience. Moreover, the first-ever omnichannel Wheel of Fortune jackpot game was launched in the U.S., while exclusively digital MegaJackpots games were introduced in Alberta, Canada. These offerings reflect IGT’s commitment to delivering cutting-edge gaming experiences tailored to players’ preferences.
Despite its successes, IGT remains dedicated to responsible gaming practices and adheres to strict regulatory standards across all its operations. With approximately 10,500 employees and a strong financial foundation, the company is well-positioned to achieve its growth objectives, reduce debt, and continue generating value for its shareholders.
“Our year-to-date performance showcases the strong cash generation of the business. We have a solid foundation to build from as we continue to invest in our growth objectives, further reduce debt, and return capital to shareholders,” said Max Chiara, CFO of IGT. “Based on our first-half results, we are confidently raising our full-year 2023 revenue and operating margin outlook.”
In conclusion, IGT’s strong second-quarter performance and optimistic outlook for the rest of 2023 demonstrate the company’s resilience, adaptability, and ability to capitalize on market opportunities. As a global leader in gaming, IGT remains committed to delivering top-quality gaming experiences while maintaining the highest standards of service and integrity in all its operations.