IGT has experienced double-digit revenue growth in all active divisions in 2021 which proved to deliver the ‘best revenue, profit, and cash flow performance in the last four years’.
Publishing its fourth quarter and full-year 2021 results, IGT noted that the ‘strong’ performance brought on full-year revenues of $4.08bn, a 31% boost from $3.11bn in 2020 and a fourth-quarter revenue increase of 19% to $1.05bn up year-on-year from $885m in 2020.
Meanwhile, the turnaround in fortunes was epitomized by operating income which swung from a $107m loss in FY2020 to a $902m profit in FY2021, which was driven by the strong growth in revenues and multiple strategic aims either met or exceeded.
“Our 2021 financial results reflect the best revenue, profit, and cash flow performance in the last four years, meeting or exceeding target levels on strong performance across the portfolio,” commented Vince Sadusky, CEO of IGT.
“We made important progress on several strategic objectives, and I am excited to be leading IGT in the next chapter of its evolution. We have set aggressive but achievable multi-year goals and we have a focused strategy to maximize value for all stakeholders.”
Global lottery continued to lead IGT’s operations, delivering $2.81bn in 2021, up 30% year-on-year attributable to ‘20% same-store sales growth’ and around $165m in benefits from ‘certain discrete items’ in H1.
High margin sales in Italy led to lottery operating income to swell to $1.09bn, up 69% on 2020’s figure of $642m.
IGT’s gaming revenue increased by 33% to $1.11bn up from 2020’s $837m given the continued recovery driving key performance indicators higher. The firm’s digital and betting division was up 44% year-on-year to $165m after entering new markets and engaging a new customer base.
The newly introduced digital and betting division saw operating income explode 421% from $6m to $33m, with the firm stating that it is due to the introduction of new jurisdictions and customers. Gaming operating income swung from a $212m loss to a $43m profit after it benefited from ‘structural cost savings’.
Strategically, IGT completed the sale of its Italian B2C gaming business in a bid to reduce its net debt, which shrank 19% from $7.32bn to $5.92bn in the last twelve months. This leaves the firm’s total leverage at 3.5x, the lowest level in its history and a year ahead of schedule.
Given the strength of the firm’s performance throughout FY2021, the board has reaffirmed the full-year 2022 guidance issues in its recent investor day and has approved a shareholder dividend of $0.20 per share.
“Improving leverage to 3.5x a year ahead of schedule enables us to pursue a balanced capital allocation framework that supports investing for growth, continued debt reduction, and the reinstatement of capital returns through quarterly dividends and share repurchases,” added Max Chiara, CFO.
“As we enter 2022, the Company is in a very good place with a solid financial condition and a strong foundation for further growth.
