International Game Technology PLC (IGT) said it anticipates a return to 2019 levels for its key financial metrics later this year in its 2021 Q1 trading update posted today.
Updating investors, the firm reported consolidated revenue of $1,015m, up 25% from the prior year, with global lottery revenue of $749m, ahead 48%, driven by 32.4% growth in same-store sales.
Global gaming revenue came in at $266m, versus $310m year-on-year; up sequentially from $255m in Q4 2020 as US gaming markets continue to recover. Operating income was reported as $260m, compared to operating loss of $218m in the prior year, while net income was $92m versus a net loss attributable of $248m year-on-year.
Adjusted EBITDA in Q1 totaled $450m compared to $261m in the prior-year period, with net debt standing at $7.07bn compared to $7.32bn at December 31, 2020.
CEO Marco Sala stated: “We delivered some of our strongest profit results ever during the first quarter, fueled by robust player demand and significant, structural cost savings. Our Global Lottery segment achieved record same-store sales levels on impressive increases around the world.
“The Global Gaming segment is demonstrating swift, progressive recovery, including accelerated momentum for Digital & Betting activities. We expect to return to 2019 levels for key financial metrics this year.”
CFO Max Chiara added: “With the recovery in our business in full swing, we are delivering strong operating leverage which, when coupled with invested capital discipline, drove strong cash flows in the quarter. This enabled us to accelerate our debt retirement strategy and gives us confidence in a return to pre-pandemic leverage levels by the end of the current year.”
IGT’s lottery business was a major contributor to what the firm quoted as “…among (the) highest revenue and profit levels in company history”. During the quarter it also signed a seven-year contract extension with the Jamaica Lottery, a four-year ilottery contract extension with the Kentucky Lottery, and a two-year contract extension with the Mexico Lottery.