IGT reports Q3 2023 financial results

Lea Hogg October 31, 2023

IGT’s Q3 2023 results reveal consistent revenue figures, with no significant growth or loss over recent financial periods.

Diverse Revenue Streams

In the third quarter of 2023, IGT’s revenue breakdown reveals a mixture of results. Global lottery contributed $601 million, reflecting a 4% year-on-year decrease, while global gaming saw a substantial increase of 8%, generating $409 million in revenue. PlayDigital accounted for $55 million, indicating a modest 1% rise. The decline in PlayDigital can be attributed to a balancing act between the growth of iCasino and the effects of withdrawing from specific legacy iSoftBet jurisdictions. Additionally, the previous year’s unusually high sports betting hold levels impacted the segment’s performance.

IGT Adjusted EBITDA rose 8%, from the same period in 2022, to $433m. (Source: SiGMA)

Strong Profit Expansion

Adjusted EBITDA experienced an 8 percent year-on-year increase, reaching US$433 million. The accompanying graph illustrates EBITDA fluctuations across quarters, with a slight dip in Q3 2023 compared to Q2 2023. Vince Sadusky, CEO of IGT, expressed optimism and commented: “The strength of our leadership positions across Global Lottery, Global Gaming, and PlayDigital is evident in our third quarter and year-to-date results. Excellent momentum in key performance indicators is driving revenue growth and even stronger profit expansion.

Earnings and future outlook

Earnings per share decreased by 65 percent, dropping from US$1.30 to US$0.46. Meanwhile, adjusted earnings per share saw a 21 percent increase, reaching US$0.52. The company attributes the drop in earnings per share to non-operating income and expenses related to specific financial matters in the previous year.

IGT’s net debt increased by 3 percent year-on-year to US $5.3 million, while net income declined from US$294 million to US$123 million in the prior-year period. Despite these challenges, IGT secured essential contract extensions and expects revenue growth in the coming quarters.

Max Chiara, CFO of IGT, added, “We are pleased with the financial results we delivered in the third quarter, including top-line growth, margin expansion, and strong cash flow generation. Our financial position is solid with net debt leverage at a historical low point, creating additional financial flexibility.”

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