IGT’s healthy performance in Q3 2021 sees it on track for an impressive year. Operating income more than doubled to $212m, fuelled by significant operating leverage across its business.
Global Lottery led the way, bringing in $652m to constitute almost two thirds of IGT’s total revenue for the period. In a distant second place was Global Gaming with $289m, while Digital & Betting trailed behind with $43m, though this segment saw the greatest growth, increasing by 37% year-on-year.
“Broad-based momentum across our Lottery, Gaming, and Digital & Betting activities drove significant improvement in key financial and performance metrics in the third quarter,” said Marco Sala, IGT’s CEO.
“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, signalling their confidence in the company's prospects.”
IGT also improved its financial situation, reducing its net debt by approximately $1.2bn from $7.2bn to $6.1bn, as well as achieving its $200m cost savings target for 2021 ahead of schedule.
As a result, the company has raised its full-year revenue outlook, expecting to bring in roughly $4.1bn in 2021, and increased its anticipated income from approximately $800m to $900m.
Max Chiara, CFO of IGT, added: “We are supporting strong top-line growth with strategic investments in the business while still making good progress on optimising 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 16 November 2021.”
