International Game Technology Reports Third Quarter 2023 Results

November 1, 2023 | Financial
  • Generated revenue of $1.06 billion, consistent with the prior year; up 6% net of Italy commercial services sale, driven by strong key performance indicators across business segments
  • Operating income increased 13% to $239 million, led by double-digit growth in Global Gaming and PlayDigital; operating income margin expands 250 basis points to 22%, a record level for a third-quarter period
  • Adjusted EBITDA up 8% to $433 million; Adjusted EBITDA margin improved 270 basis points to 41%
  • Strong cash flow generation contributed favorably to net debt, improving net debt leverage to a historic low of 3.0x
  • Tightening full-year 2023 revenue outlook to upper end of previous range; maintaining profit margin outlook

LONDONOct. 31, 2023 /PRNewswire/ — International Game Technology PLC (“IGT”) (NYSE:IGT) today reported financial results for the third quarter ended September 30, 2023. Today, at 8:00 a.m. EDT, management will host a conference call and webcast to present the results; access details are provided below.

“The strength of our leadership positions across Global Lottery, Global Gaming, and PlayDigital is evident in our third quarter and year-to-date results,” said Vince Sadusky, CEO of IGT. “Excellent momentum in key performance indicators is driving revenue growth and even stronger profit expansion. With a compelling pipeline of innovative products and solutions showcased at recent tradeshows, I am confident we can achieve our near and medium-term goals as we focus on unlocking the intrinsic value of IGT’s market-leading assets.”

“We are pleased with the financial results we delivered in the third quarter, including top-line growth, margin expansion, and strong cash flow generation,” said Max Chiara, CFO of IGT. “Our financial position is solid with net debt leverage at a historical low point and already comfortably within our long-term target range, which coupled with no meaningful near-term debt maturities and access to significant liquidity, greatly enhances our balance sheet and creates additional financial flexibility.”

Key Highlights:

  • Secured seven-year lottery contract extension as primary technology provider to the California Lottery through October 2033 and 10-year contract extensions as retail and iLottery systems partner to the Kentucky Lottery Corporation through July 2036
  • Deployed end-to-end cloud-based iLottery platform for Totalizator Sportowy in Poland
  • Showcased a broad range of gaming products and solutions reflecting IGT’s commitment to performance, quality, and innovation at the Global Gaming Expo and Australasian Gaming Expo
  • Launched bespoke CAESARS CLEOPATRA® game for Caesars Palace Online Casino
  • Debuted award-winning PeakBarTop™ cabinet with sports betting, providing players the market’s most advanced sports betting interface for land-based casinos
  • Expanded PlaySports technology footprint, including IGT’s trading advisory services, with deployments at Palace Casino Resort in Mississippi and St. Croix Casino in Wisconsin
  • Good progress on ESG initiatives, including publication of 2022 Sustainability Report; improved ESG scores from FTSE Russell and S&P Global Corporate Sustainability Assessment; recognized as “Best Place to Work for Disability Inclusion” by the 2023 Disability Equality Index

Financial Highlights:
Consolidated revenue of $1.06 billion, in line with the prior year; net of the Italy commercial services sale in September 2022, revenue increased 6%

  • Global Lottery revenue of $601 million was down 4% year-over-year; net of the Italy commercial services sale, revenue rose 5% on strong same-store sales in Italy, with continued strength in both instant ticket and draw games, and elevated U.S. multi-state jackpot activity
  • Global Gaming revenue of $409 million, up 8% from $379 million in the prior year, primarily driven by growth in the installed base and higher system and software sales
  • PlayDigital revenue of $55 million, in line with the prior year, as growth in iCasino was offset by the impact of exiting certain legacy iSoftBet jurisdictions and unusually high sports betting hold levels in the prior year

Operating income of $239 million increased 13% from $211 million in the prior year, led by contributions from Global Gaming and PlayDigital; operating income margin expanded 250 basis points to 22%

  • Global Lottery operating income of $206 million versus $211 million in the prior year reflects impact from sale of Italy commercial services; Italy commercial services contributed $12 million in operating income in the prior year
  • Global Gaming operating income increased 42% to $93 million; operating income margin expanded 550 basis points to 23% on research and development process improvements, easing of supply chain costs, and high-margin system sales
  • PlayDigital operating income up 32% to $16 million; operating income margin expanded 660 basis points to 28% on strong operating leverage
  • Corporate support and other expense of $75 million was in line with the prior year as project costs in the current year offset transaction costs in the prior year

Adjusted EBITDA of $433 million rose 8% from $402 million in the prior-year period, on higher operating income and depreciation and amortization, partially offset by lower transaction expense associated with the sale of Italy commercial services in the prior year; Adjusted EBITDA margin increased to 41% from 38% in the prior year, led by margin expansion in Global Gaming and PlayDigital

Net interest expense of $73 million was in line with the prior year

Foreign exchange gain of $23 million, compared to $37 million in the prior year, on higher foreign exchange losses related to the Argentine peso in the current year; foreign exchange gain in both periods primarily driven by non-cash impact of fluctuations in the EUR/USD exchange rate on debt

Other non-operating expense, net of $1 million, versus other non-operating income, net of $139 million in the prior year, driven by gain on sale of Italy commercial services and accrual related to the DDI/Benson matter in the prior-year period

Income tax provision of $66 million, compared to $21 million in the prior year, primarily driven by settlement of a tax audit in Italy in the current year and a non-recurring benefit arising from the DDI/Benson matter in the prior year

Net income of $123 million versus $294 million in the prior-year period

Diluted earnings per share of $0.46, versus $1.30 in the prior year, primarily reflects non-operating income related to the gain on sale of Italy commercial services and non-operating expense related to the DDI/Benson Matter in the prior year; Adjusted diluted earnings per share of $0.52 compared to $0.43 in the prior year on higher operating income

Net debt of $5.3 billion compared to $5.2 billion at December 31, 2022; Net debt leverage of 3.0x versus  3.1x at December 31, 2022

Cash and Liquidity Update
Total liquidity of $1.9 billion as of September 30, 2023; $0.6 billion in unrestricted cash and $1.3 billion in additional borrowing capacity from undrawn credit facilities

Other Developments
On October 27, 2023, the Company announced a make-whole call of the remaining €112 million of 3.500% Euro Notes due 2024

The Company’s Board of Directors declared a quarterly cash dividend of $0.20 per common share

  • Ex-dividend date of November 28, 2023
  • Record date of November 29, 2023
  • Payment date of December 13, 2023

Introducing Fourth Quarter 2023 Expectations; Tightening Full-Year 2023 Revenue Outlook to Upper End of Previous Range while Maintaining Profit Margin Outlook
Fourth Quarter

  • Revenue of ~$1.1B
    • Global Lottery revenue up low-to-mid single-digits versus the prior-year period
    • Global Gaming and PlayDigital revenue in line with prior-year-period
  • Operating income includes ~$25M in previously communicated restructuring and project costs

Full Year

  • Revenue of ~$4.3 billion
  • Operating income margin of ~23%
  • Cash from operations of $900 million – $1,000 million
  • Capital expenditures of $400 million – $450 million

Earnings Conference Call and Webcast
October 31, 2023, at 8:00 a.m. EDT

To register to participate in the conference call, or to listen to the live audio webcast, please visit the “Events Calendar” on IGT’s Investor Relations website at A replay will be available on the website following the live event.

Comparability of Results
All figures presented in this news release are prepared under U.S. GAAP, unless noted otherwise. Adjusted figures exclude the impact of items such as purchase accounting, impairment charges, restructuring expense, foreign exchange, and certain one-time, primarily transaction-related items. Reconciliations to the most directly comparable U.S. GAAP measures are included in the tables in this news release. Constant currency changes for 2023 are calculated using the same foreign exchange rates as the corresponding 2022 period. Management uses non-GAAP financial measures to understand and compare operating results across accounting periods, for internal budgeting and forecasting purposes, and to evaluate the Company’s financial performance. Management believes these non-GAAP financial measures reflect the Company’s ongoing business in a manner that allows for meaningful period-to-period comparisons and analysis of business trends. These constant currency changes and non-GAAP financial measures should however be viewed in addition to, and not as an alternative for, the Company’s reported results prepared in accordance with U.S. GAAP. Amounts reported in millions are computed based on amounts in thousands. As a result, the sum of the components may not equal the total amount reported in millions due to rounding. Certain columns and rows within tables may not add due to the use of rounded numbers. Percentages and earnings per share amounts presented are calculated from the underlying unrounded amounts.

About IGT
IGT (NYSE:IGT) is a global leader in gaming. We deliver entertaining and responsible gaming experiences for players across all channels and regulated segments, from Lotteries and Gaming Machines to Sports Betting and Digital. Leveraging a wealth of compelling content, substantial investment in innovation, player insights, operational expertise, and leading-edge technology, our solutions deliver unrivaled gaming experiences that engage players and drive growth. We have a well-established local presence and relationships with governments and regulators in more than 100 jurisdictions around the world, and create value by adhering to the highest standards of service, integrity, and responsibility. IGT has approximately 10,500 employees. For more information, please visit

See the complete Financial Report.

SOURCE: International Game Technology PLC.

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