Lottery growth combines with digital and betting recovery to boost IGT Q2 performance

Image source: IGT

International Game Technology PLC has posted Q2 financial results for the trading period ended June 30, 2021, citing an outstanding performance in its lottery division and progressive recovery in digital and betting as drivers of revenue and profit growth.

Consolidated revenue for the quarter came in at $1bn, up 74% year-on-year, with Global Lottery revenue rising 58% to $725m thanks to a 35% growth in same-store sales. Global Gaming revenue, meanwhile, was ahead 126% year-on-year at $316m, and up by 19% sequentially on continued recovery trends.

The firm also noted an operating income of $244m compared to operating loss of $72m in the prior year. Net loss was $39m versus a net loss of $268m in Q2 2020, primarily driven by significant revenue increases.

Adjusted EBITDA of $442m compared to $164m year-on-year, with Global Lottery delivering near record segment-level adjusted EBITDA.

Net debt, said IGT, stood at $6.3bn, down by more than $1bn from $7.3bn at December 31, 2020. 

CEO Marco Sala commented: “Impressive second quarter results highlight the vitality of our portfolio. Outstanding lottery performance, the progressive recovery in land-based gaming, and strong increase in digital and betting activities drove substantial revenue and profit growth, delivering adjusted EBITDA that is among the highest recorded in a quarterly period. 

“On the strength of the first half performance, we are raising our outlook for the year and now expect to exceed 2019 levels for key financial metrics this year.”

CFO Max Chiara added: “Record free cash flow from continuing operations and proceeds from recent asset sales fueled significant debt reduction in the first half. Our leverage profile improved substantially, reaching pre-pandemic levels well ahead of expectations, and improving our credit profile and overall financial condition.”

On the outlook, IGT has forecast second half 2021 revenue and operating income from continuing operations of $2bn and $300m, respectively, both of which are meaningfully higher than the prior year.

Global Lottery is expected to return to more normal growth rates applied to higher levels of consumption, with third quarter-to-date same-store sales up by double digits versus 2019.