IGT posts slight Q4 2023 revenue increase driven by lottery performance
New York-listed supplier sees revenue for the final quarter of the year reach $1.1bn ahead of merger with Everi
IGT has posted a 3% year-on-year (YoY) rise in revenue to $1.1bn (£860m) for Q4 2023, driven by growth in the supplier’s global lottery arm.
Revenue from its lottery division rose 7% YoY from $639m to $681m, while its Global Gaming arm saw a minimal increase YoY from $389m to $390m.
However, the firm’s PlayDigital division reported a 10% YoY decrease in revenue, falling from $65m to $59m for the final quarter of the year.
The supplier said the downturn in the revenue for PlayDigital was due to a one-time benefit related to jackpot expense in 2022 as well as lower sports betting volumes and hold rates in Rhode Island in 2023.
IGT noted a 9% YoY increase in adjusted EBITDA to $454m, up from $419m in Q4 2022, while EBITDA margin increased to 40.2% from 38.3%.
Operating income increased 11% from $230m to $256m, bolstered by a 17% uptick in the global gaming arm’s performance in the metric.
Alongside the release of its Q4 results, IGT published its full-year results for 2023.
The supplier saw revenue for the year increase by 2% to $4.3bn, alongside a jump in operating income by 9% to a record $1bn with growth across all of the business’ segments.
Operating income for the Global Lottery arm had a slight uptick of $4m to $913m, while there was a 29% leap in the metric for the Global Gaming business to $313m.
The most significant operating income increase came in the firm’s PlayDigital segment, which saw a 32% jump from $50m to $62m.
Adjusted EBITDA and adjusted EBITDA margin also hit record levels for the supplier, as the firm posted $1.8bn in earnings and a margin of 41.3%.
IGT expects full-year 2024 revenue to be between $4.3bn and $4.4bn with an operating margin of between 20% and 21%. The firm also pointed to a 300 basis point negative impact from separation and divestment costs relating to the mega-merger with Everi.
Following the Q4 report, IGT confirmed it will merge its Global Gaming and PlayDigitial businesses with Everi in a $6.2bn deal. This deal will also see the supplier conclude its strategic review of the two business segments.
Under the terms of the deal, IGT will separate the Global Gaming and PlayDigital businesses via a taxable spin off to IGT shareholders before immediately combining the business with Everi.
The deal has been approved unanimously by all voting members of each of the firm’s respective boards, with the deal expected to close either in late 2024 or early 2025.
Speaking on the deal, IGT CEO Vince Sadusky said: “We believe the recent determination to split the business and create separate lottery and gaming pure-play companies, each with experienced management teams and simplified business models, better positions each company to service customers and create significant value for stakeholders.”