IGT Q1: Revenue down 12% to $583m; supplier prepares for Italy Lotto licence

Key points:

– Revenue down 12% to $583m, operating income fell 37% to $183m

– Income from continuing operations decreased 93% to $8m

– IGT has set aside cash in preparation for the Italian Lottery Licence bidding process

IGT has published its financial results for Q1 2025, for the period ending 31 March 2025.

Revenue dropped 12% year-on-year to $583m, while operating income fell 37% to $138m. Revenue in the US and Canada dipped 20% to $259m, Italy fell 3% to $246m and Rest of World decreased 7% to $79m.

When looking at individual products, instant ticket & draw revenue decreased 3% to $500m, while US multi-state jackpots fell 46% to $17m.

Income from continuing operations plummeted 93% to $8m, compared to the $116m total in Q1 2024. Net income saw a 53.1% drop to $60m, but they were still in the green.

Adjusted EBITDA declined 24% to $250m, while diluted earnings per share went down to -$0.11. However, net debt improved from $5.22bn to $5.05bn.

IGT attributes these trends to “rebranding costs associated with separating Lottery from Gaming & Digital” and “negative foreign currency translation”.

Global same-store growth fell 3.8%, with instant tickets dropping 0.1%. In the US, instant ticket & draw games decreased 1.3% while multi-state jackpots dipped 46.1%.

In Italy, instant ticket and draw games fell 0.7%, while the Rest of World actually saw 5.2% growth.

Vince Sadusky, IGT CEO, said: “Global sales of instant ticket and draw games continue to expand, driven by a steady pipeline of game innovation and portfolio optimisation strategies.

“While the world is currently faced with great uncertainty, we are excited about the initiatives we are working on to drive sustainable, long-term growth and shareholder value.”

IGT also noted that there was “higher instant ticket printing in the current year”, as well as “higher terminal sales”.

Max Chiara, IGT CFO, said: “First quarter profit was in line with expectations at constant currency and we delivered strong cash conversion.

“Given lower US multi-state jackpot activity and the current worsening macroeconomic environment, we believe it is likely we will be at the low end of the full-year revenue and adjusted EBITDA guidance provided in February.

“With a solid financial profile and ample liquidity in advance of important contract renewals, we remain well-positioned for the future.”

Good to know: IGT was awarded a first-of-its-kind award this Q1 when it was accredited with the Internet Compliance Assessment Program (iCAP) Ready certificate by the National Council on Problem Gambling (NCPG)

On 14 March 2025, the company took out a €1bn ($1.11bn) loan, due in 2030.

€500m of this will go towards repaying credit facilities, while interestingly, the other €500m has been bookmarked for if IGT is awarded the Italian Lottery Licence.

IGT expects the FY2025 revenue to hit $2.55bn and adjusted EBITDA to total $1.10bn, which are at the lower end of the original ranges published in February 2025.

The supplier explained that this was “given lower US multi-state jackpot activity and the current worsening macroeconomic environment”, and “cash from operations is now expected to be a use of approximately $350 million, primarily to account for the incremental FX impact on the first two installments of the Italy Lotto license fee.”

Also in preparation for the Italian Lottery Licence bidding process, IGT secured its sixth consecutive responsible gaming certification in Italy earlier this year.