IGT reports Q3 revenue decrease following dip in US performance
Tech supplier records revenue of $587m, down 2% year on year, despite Italy showing promising growth
IGT has generated revenue of $587m (£460.1m) for the third quarter of 2024, representing a 2% decrease when compared to the corresponding period in 2023.
Revenue from services fell 2% year on year (YoY) to $566m, partly due to a 56% reduction in revenue from US multi-state jackpot wagers. Product sale revenue amounted to $20m, down 17% YoY.
Geographically, despite a 7% decrease YoY, the US and Canada continued to be IGT’s most profitable region, generating revenue of $284m for the quarter.
Italy revenue increased 5% YoY to $228m, while the rest of the world contributed a further $75m, down on the $77m a year prior.
The supplier’s operating expenses rose 9% YoY from $438m to $477m, leading to a 33% YoY decrease in operating income from $163m to $110m.
After factoring in non-operating expenses of $94m and income tax provisions of $61m, net profit for Q3 totalled $43m, down from $123m the previous year.
Adjusted EBITDA for Q3 fell 6% YoY to $264m, with an adjusted EBITDA margin of 44.9%.
IGT’s finances for the third quarter were boosted by sigining a 10-year contract extension with the North Carolina Education Lottery, as well as securing a three-year primary instant ticket printing contract with Portugal’s national lottery.
The company also strengthened its partnership with La Française des Jeux (FDJ) by signing of three-year instant ticket printing contract.
When looking at year to date – January through September – revenue landed at $1.86bn, up from $1.85bn at the same point in 2023.
Operating income fell 9% YoY to $507m, while net profit dropped from $280m to $256m.
Adjusted EBITDA for the first nine months of the year came to $880m, down from the $898m recorded in 2023.
On the Q3 results, Vince Sadusky, CEO of IGT, said: “Our third-quarter and year-to-date performance underscores the strength and resilience of our business model marked by our scale, attractive margin structure and strong cash generation.
“Over the first nine months [of 2024], we generated $1.9bn in revenue, led by steady Italy growth and improved third-quarter trends in the US.
“We are excited to build upon a solid foundation as we transform into a leaner, more focused global lottery pure play, and capitalise on attractive industry dynamics.”
CFO Max Chiara added: “Sustained cash flow generation in the first nine months was predominantly driven by continuing operations.
“The value of IGT is enhanced on a go-forward basis by a low pro forma leverage profile and by the launch of a cost optimisation initiative as we look to right size the organisation while supporting long-term growth initiatives.”