IGT beats analysts’ expectations despite 2% year-on-year dip in revenue
New York-listed supplier’s shares leap almost 10% even though operating income and adjusted EBITDA fell by single digits
International Game Technology (IGT) has announced a 2% (3% in constant currency) year-on-year (YoY) decline in revenue to $1.02bn for the second quarter of 2022.
Operating income amounted to $288m, a fall of 6.6% on the same period in 2021, with the supplier noting that its that its global lottery arm had been matched against a period of time that had profited from a $70m prior-year benefit from the closure of gaming halls in Italy due to the pandemic.
Furthermore, IGT posted a 7% decline in total adjusted EBITDA to $409m, down from $442m in Q2 2021, which was the highest in the company’s history. EBITDA margin for Q2 2022 was 40%.
Despite the falls, the company’s performance surpassed analysts’ expectations, sending the shares up 9.7% to $20.52 at the close of trading in New York.
Meanwhile, the firm continued its momentum in the US and Canada, registering revenue of $330m, which was up 21% YoY.
The digital portion of the firm saw a slight increase, posting revenue of $43m, up 2.4% YoY.
IGT was also impacted by a $150m non-operating expense associated with ongoing litigation and associated claims related to Double Down Interactive LLC and its social gaming business sold in 2017 by IGT.
IGT also gave an update on how it has performed in H1. Financial performance remained stable at $2.05bn, however, group operating income was down 4.8% YoY to $480m.
Recently, IGT completed the €160m acquisition of iSoftBet, which will help it to kick on further in H2 2022.
IGT say it still feels it can achieve its full-year objectives but has tightened its full-year outlook to reflect currency changes and perimeter impact from previously announced divestiture.
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 the 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.”