Strong Q1 2024 Performance: IGT Reports Revenue Increase to $1.07 Billion
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Strong Q1 2024 Performance: IGT Reports Revenue Increase to $1.07 Billion

International Game Technology reported a revenue increase to $1.07 billion in the first quarter of 2024.
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International Game Technology PLC (NYSE: IGT) reported robust financial results for the first quarter of 2024, showcasing a revenue increase to $1.07 billion, a 1% rise from the previous year’s $1.06 billion.

This growth was primarily driven by a significant uptick in Global Lottery sales, a 6% increase to $661 million. However, this was partially offset by a 7% decline in Gaming & Digital revenue, which fell to $406 million. The company’s operating income remained steady at $256 million, but excluding separation and divestiture costs, it reached a record $273 million, marking a 7% increase.

Operating income margin for the quarter was 24.0%, slightly above the prior year’s 24.1%. Adjusted EBITDA for the quarter was $443 million, with an adjusted EBITDA margin of 41.5%. When excluding separation and divestiture costs, adjusted EBITDA rose to $461 million, and the margin improved to 43.1%.

IGT Beats EPS and Revenue Expectations in Q1, Reports $1.07 Billion in Revenue

IGT’s performance in the first quarter exceeded market expectations. The company reported earnings per share (EPS) of $0.40 (and an adjusted EPS of $0.46), significantly higher than the anticipated $0.30.

This remarkable improvement in EPS, a 264% increase from the $0.11 reported in the same period last year, was driven by a combination of strong operational performance and favorable foreign exchange gains. Analysts had projected revenue of $1.03 billion for the quarter, but IGT surpassed this with actual revenue of $1.07 billion, highlighting the company’s robust sales in the Global Lottery division.

Despite a decline in Gaming & Digital revenue, the segment’s operating income margin expanded by 80 basis points to 20%, thanks to process improvements in research and development and easing supply chain costs.

The Global Lottery segment’s operating income rose by 8% to $258 million, driven by strong same-store sales in Italy and higher product sales margins. These results underscore IGT’s ability to outperform expectations through strategic initiatives and operational efficiencies.

IGT Upgrades Full Year 2024 Guidance

Given the strong performance in Q1 2024, IGT has upgraded its full-year outlook. For the second quarter of 2024, the company expects revenue of approximately $1.05 billion and an operating income margin of around 22%, or 24.5%, when excluding separation and divestiture costs. This guidance reflects continued confidence in the company’s ability to drive growth and profitability across its key business segments.

For 2024, IGT has set ambitious targets, projecting revenue of around $4.4 billion and an operating income margin of approximately 21%, or 24%, excluding separation and divestiture costs.

The company also anticipates generating cash from operations of at least $1.0 billion and plans capital expenditures of roughly $500 million. This optimistic outlook is supported by broad-based momentum across key performance indicators and ongoing efforts to separate the Global Lottery business from Gaming & Digital.

Disclaimer: The author does not hold or have a position in any securities discussed in the article.