International Game Technology PLC (IGT ), a multinational gaming company, has reported a profitable Q2 and a recovering global gaming division and remains confident in its 2021 commercial strategy.
IGT with 74% Yearly Increase in Revenue
IGT Plc has reported a yearly increase in revenue of 74% to $1 billion against the $600 million from a year earlier. The group increased its net EBITDA by $442 million, compared to $164 million in 2020, and saw $244 million in operating income. The company has a huge improvement on its operating losses of $72 million in Q2 2020. IGT CEO Marco Sala said that the second-quarter results show the vitality of the company’s portfolio.
The group’s global gaming division recovered from the pandemic and returned to a profitable state as its total revenue from digital & betting verticals rose by 41% in Q2. Even though the verticals saw an accelerated recovery, the most significant growth factor the company recorded was the Maryland Lottery Deal.
IGT’s Global Lottery Division Brought in the Most Profit
The group’s Global Lottery division brought the second-highest revenue and profit in the group’s segment history. It increased by 126% to $316 million, compared to $140 million in Q2 2020. Not only did the Maryland Lottery embrace the company’s best-in-class cashless solution, but it was also integrated by Caliente Casinos and the Washington Lottery.
Sala said, “The Outstanding Lottery performance, the progressive recovery in land-based Gaming, and a strong increase in Digital & Betting activities drove substantial revenue and profit growth, delivering Adjusted EBITDA that is among the highest recorded in a quarterly period.”
Asset Sales Increased Cash Flow
IGT CFO Max Chiara said, “Record free cash flow from continuing operations and proceeds from recent asset sales fueled significant debt reduction in the first half.”
IGT identified several factors responsible for the fast recovery, including the sale of B2C Lottomatica units in Italy, which brought $748 million in net cash, used to “partially fund full redemption” of 4.750% Senior Secured Euro notes in February 2023.
IGT’s Debt Could Cause Problems, but There’s Room for Optimism
Despite its positive net income, IGT had a net loss of $39 million versus a net loss of $268 million in the prior-year period.
The group reduced its net debt by $1 billion from $7.3 billion on 31 December 2020. The company reduced its net interest expense to $91 million, compared to $96 million in Q2 2020 and “disciplined cost management” and OptiMA structural cost-savings program. However, since it still has a debt of $6.3 billion, it is likely to have debt problems, despite its positive trend.
IGT leaders are optimistic about overall sustainability and growth for the company, with Chiara saying that the IGT leverage profile improved its sustainability. IGT reached its pre-pandemic levels and improved its credit profile and overall financial conditions.