International Game Technology (IGT) announced Tuesday its financial results for Q4 2021 and the year ended December 31, 2021. The report shows that the company saw $4.1 billion across all segments in 2021 on double-digit growth across all segments, accounting for a 31% increase.
The company reported a detailed breakdown of each of its segments’ results for 2021, with its Global Lottery operations reaching $2.8 billion in revenue, up from $2.2 billion. Global Gaming revenue rose 33% to $1.1 billion, while Digital & Betting increased its winnings to $165 million, up 44% in a year-over-year comparison.
Adjusted EBITDA totaled nearly $1.7 billion, up 67% compared to the prior year; Adjusted EBITDA margin of 41% was among the highest level in company history.
For the fourth quarter of 2021, IGT reported a consolidated revenue of $1 billion, up 19% from $885 million in 2020.
Global Lottery revenue totaled $687 million in the final three months of the year, up from $630 million in 2020. Global Gaming revenue was $321 million, up 45% from the prior year. Digital & Betting revenue rose to $42 million, up from $33 million in a year-over-year comparison, propelled by new jurisdictions and customers.
Adjusted EBITDA for Q4 was $387 million, up 31% from $295 million in 2020.
In an official press release, Vince Sadusky, CEO of IGT, spoke about these results and said: “Our 2021 financial results reflect the best revenue, profit, and cash flow performance in the last four years, meeting or exceeding target levels on strong performance across the portfolio. We made important progress on several strategic objectives, and I am excited to be leading IGT in the next chapter of its evolution. We have set aggressive but achievable multi-year goals and we have a focused strategy to maximize value for all stakeholders.”
Max Chiara, CFO of IGT, added: “Improving leverage to 3.5x a year ahead of schedule enables us to pursue a balanced capital allocation framework that supports investing for growth, continued debt reduction, and the reinstatement of capital returns through quarterly dividends and share repurchases”.
During an earnings call held March 1, Executive Chairman Marco Sala stated: “In the quarter, we generated over $1 billion in revenue, up 19% year over year on solid global same-store sales growth in lottery, higher replacement unit shipments and ASP in gaming and 25% growth in digital and betting, propelled by continued market expansion and customer demand for our products and technology”. And reflected “As we enter 2022, the company is in a very strong place, with a solid financial condition and a strong foundation to build on”.
He also referred to some recent leadership changes, including Vince Sadusky’s new role as CEO and his own as Executive Chair, as the strategy to “best position the company to realize its long-term growth initiatives and create significant shareholder value”.
Speaking of the outlooks for 2022, Sadusky stated: “We have set aggressive, but achievable financial goals that include impressive cash flow generation over the next several years, and we have a disciplined strategy to allocate that cash flow to maximize value for all stakeholders. We have a powerful, diverse portfolio that not only offers compelling growth prospects, but also provides significant resilience”.
“This year, we expect to significantly increase the number of new iGaming titles, and we will also begin distributing our first third-party games. Our PlaySports solution powers over 60 venues in more than 20 states and was recently recognized as the Platform Provider of the Year at the SBC Awards North America. The turnkey sports betting solution is gaining traction, including new partnerships with Meruelo Gaming and Cliff Castle Casino. We also have a robust pipeline of new turnkey customers teed up for 2022”, he concluded.
IGT announced late February the signing of a definitive agreement to sell its Italian proximity payment business to PostePay – Patrimonio Destinato for €700 million ($784 million). Under the agreement, IGT will be selling LIS Holding and indirectly LISPAY. These two wholly owned subsidiaries conduct IGT’s proximity payment business, offering services through a fully owned advanced payment technology platform and a network of 54,000 points of sale.
On the sale, Sadusky commented: “This transaction provides us with an opportunity to monetize IGT’s market leadership in the Italian proximity payment business at an attractive value as we continue to execute our long-term strategy”.
Original article: https://www.yogonet.com/international/news/2022/03/02/61590-igt-sees-best-revenue–profit–cash-flow-performance-in-last-four-years-with-an-allsegments-rise-in-2021
