International Game Technology (IGT) announced Tuesday its financial results for the second quarter of 2022, showing revenue of $1.2 billion, a 2% decrease compared to the same period in 2021. Revenue was driven by Global Gaming product sales, a segment that grew by 23%.
However, the business also reported a second-quarter net loss of $4 million, after reporting a profit of $306 million in the same period a year earlier. On a per-share basis, the London-based company said it had a loss of 2 cents, with earnings, adjusted for non-recurring costs, at 57 cents per share.
The results topped Wall Street expectations. The average estimate of three analysts surveyed by Zacks Investment Research was for earnings of 31 cents per share, Associated Press reports. Meanwhile, the $1.02B of revenue met Street forecasts.
The company’s operating income for the quarter was $228 million, and its operating income margin of 22%. The Adjusted EBITDA of $409 million matches 2021’s record level at constant currency, while the 40% adjusted EBITDA margin was among the highest in the company’s history.
IGT also returned a record $135 million to shareholders via cash dividend and share repurchases, and reaffirmed full-year revenue and profit outlooks “as fundamentals remain strong.”
In a press release, Vince Sadusky, CEO of IGT, said: “Strong customer and player demand for IGT’s products and solutions drove some of our strongest profit results ever in the second quarter and first half of the year. Our business profile is supported by significant recurring revenue streams backed by long-term contracts and resilient end markets, providing a solid foundation on which to grow. We are laser-focused on executing our strategic objectives and creating compelling value for our stakeholders.”
Max Chiara, CFO of IGT, added: “Our first half results set us firmly on the path to achieving our 2022 financial targets. Rigor on costs and incremental revenue opportunities allow us to maintain our full-year operating income margin outlook despite unfavorable currency movements and macroeconomic challenges. At the same time, we are returning significant capital to shareholders via dividends and share repurchases.”
During the second quarter of the year, the company achieved several milestones that drove IGT into these satisfactory results, such as the completed acquisition of iSoftBet. The brand also signed an agreement with NUSTAR Resort & Casino to deploy its CMS, and expanded its sports betting partnership with SuperBook Sports to Tennessee. The company also saw the launch of its wide area progressive game Money Mania to commercial gaming jurisdictions.
However, this quarter saw the company’s Global Lottery revenue decrease to $648 million compared to $725 million in the prior year. This included $70 million in prior-year benefits from Italy gaming hall closures.
Vince Sadusky
In contrast, Global Gaming revenue saw an increase of 21% to $330 million, driven by significantly higher product sales revenue and higher active installed base units, while Digital & Betting revenue of $43 million was stable with the prior year, as iCasino growth in the U.S. is partially offset by softness in other markets and North American sports betting market gross gaming revenue is impacted by lower hold levels.
In the press release, the company also announced that it expects to close the sale of its Italian proximity payment/commercial services business for €700 million ($738 million) during the third quarter of 2022.
Based on the latest deals as well as the financial results pertaining to the second quarter of the year, IGT reaffirmed its full-year revenue and profit outlook and introduced the third quarter of 2022 projections.
For the full year, the company reaffirmed its projection of $4.1 billion to $4.2 billion revenue, with an operating income margin of 20-22%. Cash from operations is expected to fluctuate between $850-$950 million, and capital expenditures of $350 million. For the third quarter, IGT expects revenue of $1 billion to $1.1 billion, and an operating income margin of 18-20%.
