IGT reports Q2 revenue of $1.05 billion with slight dip in operating income

International Game Technology (IGT) has reported revenue of $1.05 billion for the second quarter of 2024, closely matching the $1.06 billion recorded in the same period last year.

The company experienced a dip in operating income, which fell to $230 million from $251 million year-over-year. IGT's Global Lottery segment, a major contributor to its financial performance, saw a slight decrease in revenue to $613 million, compared to $621 million in the previous year. This segment's performance was influenced by variations in jackpot activity and a strong comparison base in the prior year.

Total adjusted EBITDA for the period was $420 million, marking a 5% decline from the previous year. Concurrently, net debt decreased by 5% to $5.11 billion.

The company's Global Gaming and PlayDigital segments reported growth. Revenue in the Global Gaming sector increased to $317 million, up from $313 million, driven by enhanced sales of gaming machines and increased placements in key markets.

Meanwhile, the PlayDigital segment, which focuses on digital and sports betting services, achieved a revenue of $119 million, an increase from $112 million in the same quarter last year. This growth was attributed to expanding market opportunities and product innovations, driven by the company's strategic emphasis on digital transformation.

IGT also highlighted significant operational cash flow generation, amounting to over $460 million in the first half of 2024. This strong cash flow supports the company's ongoing debt reduction efforts and shareholder returns.

“IGT delivered strong first-half results, including record operating income and Adjusted EBITDA net of separation and divestiture costs. Consistent investments in technology, game content, and other innovative solutions provide us a solid foundation to build from as we execute on our growth objectives. The recently announced sale of our Gaming & Digital business for $4.05 billion in cash is an important step in unlocking the intrinsic value of IGT's best-in-class businesses," Vince Sadusky, CEO of IGT, said.

During the quarter, IGT entered into a definitive agreement to sell its Gaming and Digital (IGT Gaming) business to Apollo Global Management's funds. Following the announcement, IGT withdrew its full-year 2024 financial outlook, pending the transaction's completion and integration.

This strategic divestiture aligns with IGT's broader strategy to optimize its portfolio. The company plans to use the proceeds from the sale to reduce debt and fund new growth opportunities in its remaining business segments. 

"We generated over $460 million in cash from operations in the first half of the year and our balance sheet is as strong as ever," said Max Chiara, CFO of IGT. "Our ample liquidity and manageable near-term debt maturities provide us significant flexibility in light of upcoming investments to extend and secure our long-term lottery contract portfolio for the coming years."