IGT’s Q3 Revenue Stagnates, but the Company Remains Healthy

International Game Technology (IGT), the global gaming and lottery solutions provider, announced its third-quarter financial results, reporting revenue of $1.06 billion. This figure is consistent with the previous year and the preceding quarters, indicating steady fiscal performance. IGT leadership remains optimistic that the company can further leverage its leadership position and achieve lasting success.

Negative Factors Impacted Profitability

IGT’s third quarter 2023 results highlighted the provider’s dominating position, but stagnating revenues indicate that its long-lasting momentum might have ended. The $1.06 billion result matches Q2, although individual sectors saw notable shifts. A detailed revenue breakdown reveals emerging trends, allowing IGT to adjust its policies and realign its focus accordingly.

The Global Lottery segment remained the most profitable for the company despite a 4% year-on-year decrease, generating $601 million. Global Gaming retained its momentum, growing 8% for $409 million in revenue. PlayDigital and its global gaming operations have seemingly reached an equilibrium, settling at $55 million– a mere 1% increase. 

IGT commented on these results, noting that its exit from several legacy iSoftBet jurisdictions, unusually high sports betting hold levels in the prior year, and stagnating PlayDigital revenue failed to offset the healthy iCasino segment growth. Despite these mixed results, EBITDA remained strong, rising 8% year-on-year to $433 million. Increases in total operating income across the board indicate IGT still has room to grow.

Long-Term Prospects Remain Positive

While earnings per share dropped by 65% from $1.30 to $0.46, adjusted earnings per share increased by 21% to $0.52. The net debt at the end of the period increased by 3% year-on-year, reaching $5.3 million from $5.1 million. The net income for the period dropped to $123 million from $294 million in the prior year period.

During this quarter, IGT secured a seven-year extension on its lottery contract with the California Lottery and a 10-year extension as the retail and iLottery systems partner to the Kentucky Lottery Corporation, solidifying its presence in two leading jurisdictions. IGT CEO Vince Sadusky remained optimistic regarding the company’s prospects, noting it could still attain significant growth.

I am confident we can achieve our near and medium-term goals as we focus on unlocking the intrinsic value of IGT’s market-leading assets.

Vince Sadusky, IGT CEO

In its fourth quarterly report, IGT expects to achieve a revenue of $1.1 billion, with an anticipated increase in revenue within its global lottery, PlayDigital, and global gaming segments. The company’s significant liquidity will be instrumental in securing further strategic partnerships as it adapts to the ever-evolving industry landscape and rising competition.