IGT announced Wednesday its financial results for the third quarter of the year, showing an increase in revenue by 7.7% to 1.06 billion. However, chief financial officer Max Chiara stated during a conference on Tuesday that the supplier would continue to work on reducing its leverage in case of “bad times” ahead.
Adjusted EBITDA for the period was $402 million, reflecting robust Global Lottery profitability and a strong increase from Global Gaming, according to the firm. The company’s lottery division made up a narrow majority of revenue at $623 million, but was also down by 4% in a year-over-year comparison. Meanwhile, revenue from lottery product sales was up to $39 million.
The brand’s Global Gaming division saw a revenue increase of 30.9% to $379 million, making up for the decreases in the lottery division. For this segment, $184 million came from services, up 7.2%; and $195 million from product sales, up 66.5%.
Digital and betting revenue was up by 27.2% to $54 million, which coincided with the closed acquisition of game aggregator iSoftBet. All in all, services brought in $826 million of IGT’s revenue while product sales revenue was up to $234 million.
IGT's CFO Massimiliano Chiara.
The company reported an operating income of $211 million, down by less than half a percent year-over-year. The supplier also reported a gain of $103 million from non-operating items, mostly due to a $120 million gain related to the class action lawsuit it announced it would settle earlier this year. After tax, the company reported a profit of $294 million, which was almost triple its profit a year earlier.
Despite the fact that the business continued to be within its target leverage rate for 2025 after it reduced its debt through the sale of Lottomatica, Chiara stated the company intends to cut its debts even further. “We would like to be in the low end to protect us from potential bad times coming, so there is still work to be done,” he said.
Vince Sadusky, CEO of IGT, noted IGT’s organization along three business segments “enables our teams to be focused on developing and delivering best-in-class products and services.”
“The accomplishments are evidenced in accelerated revenue and profit expansion in the third quarter, achieving the top-end of our margin outlook. Customer and player demand trends remain encouraging and IGT’s suite of innovative products and solutions has never been better,” he added.
For its Q4 and full-year numbers, the company projected revenues of $1 billion for the quarter, while for 2022 revenue is expected to fall between $4.1 billion and $4.2 billion. The brand also expects to make between $850 million and $950 million in cash flow from operations for the full year.
