IGT lifts 2023 guidance as Q2 revenue rises 3%
New York-listed supplier predicts full-year revenue will reach between $4.2bn and $4.3bn following solid first half of 2023
IGT has posted a 3% year-on-year (YoY) rise in revenue to $1.06bn (£830m) for Q2 2023 driven by growth in its gaming arm.
Revenue from its global gaming arm rose 13% YoY from $330m to $373m while a 38% leap in revenue from its PlayDigital operations from $43m to $59m helped support the firm.
However, revenue from its global lottery arm decreased 4% YoY from $648m to $624.
Elsewhere, IGT noted an 8% YoY increase in adjusted EBITDA to $443m, up from $409m in Q2 2022. The firm’s EBITDA margin increased to 42% from 40%.
Operating income increased 10% YoY from $228m to $251m, bolstered by a 125% leap in PlayDigital’s performance in the metric.
IGT pointed to strong player demand trends and its acquisition of iSoftBet as the core reasons behind the division’s growth.
During the quarter, IGT secured a 10-year brand licensing extension with Sony Pictures Television, which gave the supplier exclusive rights to the Wheel of Fortune brand across gaming, lottery, igaming and ilottery.
IGT was also awarded a 20-year licence, as part of a consortium, to operate certain lottery games for Minas Gerais State Lottery in Brazil, 10-year contracts in Malta for lottery technology and an eight-year ilottery contract in Connecticut.
Looking at H1, revenue rose from $2.1bn in 2022 to $2.2bn in the first six months of 2023. Operating income also increased from $480m to $506m.
Following these results, the supplier issued fresh guidance for the third quarter and its full-year expectations.
In Q3, IGT is expecting revenue to be approximately $1bn and the operating margin to be between 22% and 23%.
For full-year 2023, IGT anticipates revenue to be between $4.2bn and $4.3bn, with an operating income margin of around 23%. The supplier expects cash from operations to be between $900m and $1bn and capital expenditures to be between $400m and $450m.
The group did not provide any further update into its ongoing strategic review which it commented on 8 June.
The firm is exploring the possibility of a sale of its global gaming and PlayDigital arms, or a merger, spin-off or retention with further investment.
Vince Sadusky, IGT CEO, said: “Our second quarter and first half results reflect solid revenue and profit momentum across all business segments.
“We achieved the high end of our outlook by executing key strategic initiatives and growing demand for IGT’s compelling content and solutions. We are solidly on track to deliver on our 2025 objectives and remain focused on unlocking the intrinsic value of IGT’s market-leading businesses.”