IGT sees revenue up 74% to over $1 billion in Q2, growth in all segments

International Game Technology PLC reported on Tuesday its financial results for the second quarter ended June 30, 2021. The report shows revenue up 74% to over $1.0 billion, fueled by increases in all businesses, including 35% Global Lottery same-store sales growth.

“Impressive second quarter results highlight the vitality of our portfolio,” said Marco Sala, CEO of IGT. “Outstanding Lottery performance, the progressive recovery in land-based Gaming, and strong increase in Digital & Betting activities drove substantial revenue and profit growth."

On the Adjusted EBITDA increase of 170% to $442 million, Sala described it as “among the highest recorded in a quarterly period.”

Financial results present a delivered operating income of $244 million, highlighting “impressive Global Lottery operating leverage” and “excellent progress on structural cost savings.”

Other highlights include a return to profitability for Global Gaming as progressive recovery continues; Digital & Betting revenue increased by 41% in the quarter; and Global Lottery revenue rising 58% to $725 million, second-highest revenue and profit levels in segment history, driven by strong player demand.

On the results of the first half performance, Sala said: “We are raising our outlook for the year and now expect to exceed 2019 levels for key financial metrics this year."

Net income reached $365 million comprised of $39 million loss from continuing operations and income from discontinued operations of $404 million, including gain on sale of assets.

Moreover, IGT generated $500 million in cash from continuing operations and a record-level $380 million of free cash flow during the first half of the year.

"Record free cash flow from continuing operations and proceeds from recent asset sales fueled significant debt reduction in the first half," said Max Chiara, CFO of IGT. "Our leverage profile improved substantially, reaching pre-pandemic levels well ahead of expectations, and improving our credit profile and overall financial condition."

The report also marks a $1.0 billion net debt reduction in first half and net debt leverage improved from 6.4x to 4.3x, reaching target six months early.

Looking ahead, IGT estimates second half 2021 revenue and operating income from continuing operations of $2.0 billion and $300 million, respectively, higher than prior year.