IGT Achieves FY 2023 Goals Ahead of Milestone Merger

International Game Technology (IGT), a global leader in the gaming industry, reported robust fiscal year 2023 financial results, achieving all of its financial targets ahead of the planned merger of its Global Gaming and PlayDigital businesses with Everi Holdings Inc. IGT’s management remain optimistic, projecting new investment opportunities and stable growth.

The Company Accomplished Record Operating Income

IGT’s corporate revenues for FY 2023 stood at $4.3 billion, marking a modest 2% increase from 2022’s $4.2 billion. Adjusted EBITDA reached a record result of $1.8 billion, up 7% compared to last year’s $1.7 billion. Operating income also settled at an all-time high of $1.0 billion, marking a  9% uptick from $922 million in the prior year and reflecting robust performance across most segments.

Despite a 2% revenue downturn to $2.5 billion for the Global Lottery unit, operating income stood at $913 million. This figure aligns with 2022’s results despite the sale of the Italy commercial services business, justifying the company’s cost-cutting measures. IGT plans to spin off this division as a standalone venture, granting it increased autonomy.

The Global Gaming unit saw a consolidated income of $1.6 billion, up 9% from FY 2022. IGT’s PlayDigital unit similarly registered a 9% increase in consolidated revenues to $228 million and achieved an operating income of $65 million. While corporate support and other expenses rose to $290 million, up from $279 million in the prior year, this mild increase did not affect the overall results.

Management Remains Optimistic regarding 2024

The board of IGT expects a full-year 2024 revenue of $4.3 billion to $4.4 billion with an operating margin of 20% to 21%. CFO Max Chiara expressed confidence in the company’s robust financial position, noting that it achieved all its FY 2023 financial goals. He highlighted IGT’s successful investments and shareholder returns, positioning the company for lasting success.

This gives us confidence in further expanding our investment in the business to fund future growth.

Max Chiara, IGT CFO

2023’s financial success sets the stage for IGT’s next ambitious venture. The company plans to merge its Global Gaming and PlayDigital businesses with Everi Holdings, Inc. to create a new entity retaining the IGT brand. This strategic move should enable a heightened focus on each business segment while preserving individual capital policies.

As IGT successfully concludes its fiscal year 2023 with record profits and prepares for its strategic restructuring, the gaming industry will closely monitor how the upcoming merger will shape the industry landscape in the coming years. Experts believe the move could set off an M&A spree across the broader gaming sector as other companies follow IGT’s example and reorganize their businesses.