IGT Posts Strong Q2 Results as Gaming and Digital Sale Looms

International Game Technology (IGT) has published its Q2 report, highlighting strong financial results. Revenue remained mostly stable during the period, despite a few minor setbacks.

IGT’s Financials Were Stable

Revenue for the period stood at $1.05 billion, marking a 1% decline from Q2 2023. This comprised $436 million of Gaming and Digital revenue and $613 million of Global Lottery revenue.

In Q2 2024, the company also reported $230 million in operating income, down 8% year-on-year, at a margin of 21.9%. Operating income from the Global Lottery arm stood at $212 million while operating income from the Gaming & Digital arm reached $103 million.

Operating income excluding separation and divestiture costs reached $256 million for the period at a 24.4% margin.

Additionally, IGT reported adjusted EBITDA of $420 million, down 5% year-on-year. The company also reported an adjusted EBITDA margin of 40%. Adjusted EBITDA excluding separation and divestiture costs was $446 million at a 42.5% margin.

Earnings per share for the period reached $0.20 for Q2, down 10% year-on-year. At the end of the quarter, the company reported $438 million in cash and cash equivalents. Free cash flow, on the other hand, was $235 million.

The company had a total liquidity of $1.7 billion as of June 30 and ended the quarter with a net debt of $5.1 billion.

In addition, IGT announced a quarterly dividend of $0.20 per common share.

IGT Reported a Number of Highlights

IGT reported a number of key highlights, including a recent seven-year contract with the Colorado Lottery and a three-year extension of its contract with the Mississippi Lottery Corporation. Additionally, IGT signed a five-year iLottery content contract with the Atlantic Lottery Corporation and launched iLottery in Connecticut.

In Q2, IGT also launched new products, including Tiger and Dragon on the PeakCurve49 cabinet and a digital version of its Prosperity Link game.

In addition, the company published its 17^th annual Sustainability Report. IGT furthermore won the Diversity and Inclusion category at the 2024 Women in Gaming Diversity Awards and was recognized as the Best Place to Work for Disability Inclusion.

On July 26, IGT entered into a definite agreement to sell its Gaming & Digital business. As a result, it withdrew its full-year 2024 outlook.

The IGT Management Is Happy with the Results

IGT’s chief executive officer Vince Sadusky commented on the matter, praising the operating income and adjusted EBITDA figures.

Consistent investments in technology, game content, and other innovative solutions provide us a solid foundation to build from as we execute on our growth objectives.

Vince Sadusky, CEO, IGT

Sadusky added that the sale of the Gaming & Digital business would be an important step in “unlocking the intrinsic value of IGT’s best-in-class businesses.”

Max Chiara, IGT’s chief financial officer, added that the company’s balance sheet is as strong as ever, underpinned by ample liquidity and manageable near-term debt maturities. According to Chiara, this provides the IGT team with significant flexibility to invest and secure its long-term lottery contract portfolio.