2024-11-13
IGT Report Q3 Results Amid Focus On Lottery Operations
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International Game Technology Plc (IGT), has released its financial results for the third quarter of 2024. The company report revealed an aggregate revenue of $587 million, reflecting a slight decline of 2.3% compared to the same period last year. This figure marks a decrease from the previous year, highlighting the challenges faced by the company in a competitive market. The revenue was primarily generated from three main segments:
Discontinued Operations
One of the most notable changes in IGT’s reporting is the classification of its gaming and digital business as discontinued operations. This shift indicates a strategic pivot for the company, allowing it to focus on its core competencies in the lottery sector. The decision to sell these operations to Apollo Global Management for $4.05 billion is expected to reshape IGT’s business model significantly.
Financial Highlights
IGT reported an adjusted EBITDA of $264 million for the third quarter, down 5.4% from the prior year. The adjusted EBITDA margin stood at 44.9%, reflecting the profitability of IGT’s lottery business. This margin is slightly lower than the 46.4% reported for the same quarter in 2023, indicating some pressure on profitability.
The operating income for the quarter was reported at $110 million, a decrease from $163 million in the previous year. This decline was primarily attributed to a $38 million restructuring charge associated with a multi-year program aimed at optimizing operational activities.
IGT’s net income attributable to shareholders for the third quarter was reported at $7 million, a significant drop from $94 million in the same period last year. This decline underscores the challenges the company faces as it navigates through a transformative phase.
Vince Sadusky, IGT’s CEO, emphasized the resilience of the company’s business model during the third quarter earnings call. He highlighted the strength of IGT’s lottery operations and the potential for growth as the company transitions to a more focused entity. Sadusky expressed optimism about IGT’s ability to capitalize on favourable industry dynamics moving forward.
Focus on Lottery Operations
As IGT transitions into a “pure-play lottery company,” the focus will shift towards enhancing its lottery offerings and improving operational efficiencies. This strategic pivot aims to leverage the company’s established presence in the lottery market, which has shown steady growth, particularly in Italy.
