IGT reports slight full-year 2024 revenue decline to $2.5 billion

International Game Technology (IGT) posted a decline in revenue and earnings for the fourth quarter and full year 2024, as the company prepares to merge its gaming business with Everi Holdings Inc. in a $6.3 billion deal that will see it go private.

IGT reported Q4 2024 revenue of $651 million, a 4% drop from the prior year, citing a difficult comparison with record sales in 2023. Adjusted EBITDA for the quarter declined 8% to $290 million, with margins shrinking from 46% to 44.5%. For the full year, revenue fell 1% year-over-year to $2.5 billion, while adjusted EBITDA dropped 4% to $1.17 billion.

Meanwhile, net debt was reduced from $5.2 billion to $4.8 billion, bolstered by cash flow improvements and foreign exchange gains.

In a significant year for the company, IGT announced the sale of its Gaming & Digital business to Apollo Global Management for $4.05 billion. The deal, expected to close by Q3 2025, aligns with IGT’s strategy to focus on its core lottery business.

Lottery operations continued to expand, with the company securing key contracts, including a seven-year agreement with the Colorado Lottery and a 10-year Lottery and iLottery deal in Luxembourg. Additionally, IGT extended contracts in Tennessee, North Carolina, Lithuania, Mississippi, Virginia, and Germany.

IGT’s gaming division will merge with Everi in a $6.3 billion transaction orchestrated by Apollo, which will result in the combined company going private. Former Aristocrat Gaming CEO Hector Fernandez will lead the new entity, while current IGT CEO Vince Sadusky will head the newly independent lottery division.

“2024 was a year of momentous transformation with the conclusion of our strategic review and the announced sale of our Gaming & Digital business for $4.05 billion in cash,” Sadusky said. “We are well-positioned to continue strengthening our global lottery leadership.”

IGT projects full-year revenue of $2.55 - $2.65 billion, with adjusted EBITDA ranging from $1.10 - $1.15 billion. Capital expenditures are expected to reach $450 million, driven by contract renewals and new bids.

Cash flow will be impacted by an estimated net cash outflow of $300 million, influenced by an €800 million ($850 million) Italy Lotto license fee payment.

“Our core, recurring business has a compelling low-to-mid single-digit growth profile and provides a solid foundation as we head into our next CapEx cycle,” CFO Max Chiara said.

As the company transitions, Sadusky emphasized that preparations for the merger and spin-off are well underway. “We’ve done the internal work on separation, so we feel very confident about being prepared for day one,” he stated.