International Game Technology (IGT) has published its Q3 2021 financial results, declaring a consolidated revenue of $984m as a result of ‘double-digit growth across all business segments’. Accordingly, the firm has raised its 2021 forecasts.
Consolidated revenue growth of 21% year-over-year to $984m (Q3 2020: $816m) was largely driven by its global lottery revenue of $652m, ahead 14% YoY (Q3 2020: $570m).
Global gaming revenues came in at $289m, a 34% improvement on the previous year (Q3 2020: $216m) while its digital and betting segment had risen by 37% YoY to $43m (Q3 2020: $31m).
CEO Marco Sala commented: “Broad-based momentum across our Lottery, Gaming, and Digital & Betting activities drove significant improvement in key financial and performance metrics in the third quarter.
“Revenue grew over 20% and operating income more than doubled, highlighting the strength of our portfolio. Based on our excellent year-to-date results and our solid financial condition, the Board reinstated a quarterly cash dividend, signaling their confidence in the Company’s prospects.”
IGT’s operating income more than doubled during Q3 to $212m, up by 144% YoY (Q3 2020: $87m) thanks to significant operating leverage across its businesses, as well as registering $200m+ in OPtiMa structural cost savings.
The firm recorded an adjusted EBITDA of $407m, which ranks among the highest levels in its history (Q3 2020: $287m). Excluding structural cost-savings, the company registered a period net income of $101m (Q3 2020: $87m).
As a result of its strong Q3 performance, IGT has raised its 2021 outlook, with the firm now targeting a group revenue of $4.1bn and an operating income of $900m (previously $800m).
During the quarter, the firm was awarded a 10-year lottery contract with Connecticut Lottery Corporation and appointed Joe Asher as President of Sports Betting and Gil Rotem as President of igaming.
IGT also announced several turnkey sports betting solutions in Q3 including full retail and mobile services for Angel Of The Winds Casino Resort, Oneida Casino, and Snoqualmie Casino, while extending cashless momentum with agreements to deploy Resort Wallet and IGTPay at Agua Caliente Casino and Indigo Sky properties.
CFO Max Chiara stated: “We are supporting strong top-line growth with strategic investments in the business while still making good progress on optimizing our cost structure.
“Achieving our goal of reducing net debt leverage below 4.0x was a big accomplishment in the quarter. We look forward to sharing our strategy, long-term growth initiatives, and capital allocation plans during our upcoming investor day on November 16, 2021.”
