IGT delivers over $1bn Q2 revenue ahead of Apollo acquisition
London-based tech supplier’s gaming and digital arm generates $436m in revenue during Q2 – improving YoY - as company posts record H1 operating income
International Game Technology (IGT) has reported revenue of $1.05bn (£818m) for Q2 2024, representing a 1% decrease year on year (YoY) compared to the same period in 2023.
The company’s global lottery division brought in $613m, down from $624m in Q2 2023, while the gaming and digital arm generated $436m in revenue, up 1% from the $432m in Q2 2023.
The gaming and digital business is set to be acquired by Apollo Global Management, alongside fellow supplier Everi in a $6.3bn deal, $4.05bn of which is due to IGT in gross cash proceeds.
Operating income for the quarter amounted to $230m, down 8% from the $251m recorded in Q2 2023.
From that total, $212m came from the global lottery arm, down from $229m last year, while $103m came from gaming and digital, a rise of 16% from the year prior.
Corporate support and other expenses totalled $86m, up from $68m in 2023.
Adjusted EBITDA for Q2 fell 5% to $420m, after accounting for global lottery ($311m), gaming and digital ($151m) and corporate support expenses ($43m).
When excluding separation and divestiture costs, overall adjusted EBITDA came to $446m, while net debt decreased 5% YoY to $5.1bn.
Free cash flow for Q2 totalled $235m as opposed to the $72m loss experienced in Q2 2023.
IGT’s Q2 earnings were boosted by the company signing a seven-year facilities management contract with the Colorado Lottery and a three-year contract extension with the Mississippi Lottery Corporation.
The supplier also signed a five-year ilottery content contract with Atlantic Lottery Corporation in addition to launching ilottery in Connecticut.
IGT CEO Vince Sadusky said that the company’s Q2 results were built on a foundation of solid investments.
He said: “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 and digital business for $4.05bn in cash is an important step in unlocking the intrinsic value of IGT’s best-in-class businesses.”
CFO Max Chiara added: “We generated over $460m in cash from operations in the first half of the year and our balance sheet is as strong as ever.
“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.”
After the sale of the gaming and digital division goes through, IGT expects to classify and report gaming and digital results as discontinued operations beginning in Q3 2024.