IGT Q1 Revenue Rises Slightly On ‘Better Than Expected’ Lottery, Gaming Numbers

Revenue at International Game Technology PLC was up about 1% for the first quarter to $1.07 billion, boosted by what CEO Vince Sadusky called “better-than-expected” lottery and gaming unit results.

“Innovative game, hardware, and systems solutions drove better-than-expected Global Lottery and Gaming & Digital performance in the first quarter,” Sadusky said in a statement. “As a result, we are upgrading our full-year 2024 revenue and profit goals, which reflect broad-based momentum across key performance indicators in the balance of the year.”

Global lottery revenue was up 6% over last year’s first quarter to $661 million, which the company attributed to “significantly higher product sales,” including new self-service lottery terminals in Ontario and software upgrades in Germany and Singapore. In an earnings call Tuesday, Sadusky also emphasized IGT’s strong performance in Italy, where same store lottery sales were up 4.4%, thanks in part to an expanded number of drawings.

Same-store lottery sales elsewhere—including North America and the rest of the world—were down about 1.5% from the same quarter last year, however. The company attributed the drop to differences in the timing of instant game launches, with more new games coming out in the early part of last year.

“This year, the launch cadence has a different tempo,” said CFO Massimiliano Chiara during the call. “We’re confident that we will be able to recover that game launch impact for the balance of the year.”

Impending spinoff

The company also won a contract to provide new video lottery terminals throughout Quebec and received a contract extension from the U.K. National Lottery. And global iLottery sales were up more than 20%, Sadusky said, thanks to good performance of games like “Ghostbusters: Prized Possessions” in U.S. markets.

“IGT’s best-in-class library hardware and software solutions drove another quarter of strong product sales growth,” Sadusky said.

But the gaming and digital unit saw revenue drop 7% to $406 million, with fewer hardware shipments and fewer software licenses sold than in the prior year. On the plus side, the unit saw a 10% rise in iGaming revenue. IGT is now offering iGaming in seven U.S. jurisdictions following the March launch in Rhode Island, where its games are available through the Bally Casino app.

“IGT has three of the five top U.S. online games,” Sadusky said, with new games linked to popular land-based slots expected to launch later this year.

Net income jumped significantly to $128 million, up from $67 million in the same period last year, and operating income stayed roughly the same at $256 million, up from $255 million.

IGT’s gaming and digital arm is slated to be spun off and merged with fellow gaming tech company Everi Holdings, with the transaction expected to close by late 2024 or early 2025. The combined company will take the IGT name and be led by Sadusky, while the remaining IGT lottery unit is expected to take a new name and ticker symbol, the companies said in February.

“The creation of separate gaming and lottery companies, each with experienced management teams and simplified business models, better positions each company to service customers and create significant value for stakeholders,” said Sadusky at the time.

IGT is expected to incur $200 million in separation and divestiture costs from the merger, including about $20 million recorded in the first quarter, which the company emphasized weighed on income. Customers, like casinos, have reacted positively to the pending deal, Sadusky said.

“We can’t wait to get this closed, and we’re excited to get together and be able to be one unit,” Sadusky said.