Vince Sadusky, CEO of IGT, said that the quarter had “exceeded expectations” for IGT, and helped to affirm its full-year outlook.
“Our first quarter results exceeded expectations and put us firmly on track to achieve our full-year outlook,” said Sadusky.
He added that the quarter’s success was fuelled by performances in IGT’s Global Lottery, Global Gaming and PlayDigital segments.
While revenue for Global Lottery fell by 8.2% to $624m, revenues for Global Gaming and PlayDigital shot up by 17.2% and 17.0% respectively.
“Compelling innovation and sustained strength in customer and player demand are fueling momentum across our Global Lottery, Global Gaming, and PlayDigital segments,” continued Sadusky. “This is clear in the excellent key performance indicators achieved in the quarter.”
IGT said that Global Lottery revenue fell due to the sale of IGT’s Italian commercial services business.
First quarter results
Revenue for the Global Gaming segment hit $381m, while revenue for PlayDigital topped $55m.
By location, the US and Canada generated revenue of $666m, up by 11.4%, while revenue in Italy dropped by 18.4%.
Service revenue made up a large chunk of this, at $846m, while product sales made up the remaining $215m.
Cost of services fell by 7.0% for the quarter to $398. Selling, research and development costs hit $217m, down by 12.4%, while cost of product sales was $127m – up by $5m year-on-year.
Research and development costs also crept up by $5m, to $62m.
In total, operating expenses came to $805m – up by 0.7% – leaving operating income at $255m, a slight rise of $3m.
Total non-operating expenses, consisting of interest expense, foreign exchange loss and other non-operating costs totaled at $101m, a rise of 44.3%.
The income before provision for income taxes was $155m. Following provision for income taxes at $87m, net income for the quarter totaled at $67m, a rise of 42.7% yearly.
Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) was $449m for the year, a rise of 3.7%.
Q2 outlook
IGT made projections for the second quarter of 2023, with expectations of $1.0bn in revenue and an operating income margin of 22%-24%.
For the full-year, revenue is expected to lie between $4.1bn and $4.3bn, with cash from operations expected to hit between $900m and $1bn.
Original article: https://igamingbusiness.com/finance/quarterly-results/segmental-success-bolsters-igt-q1/
