IGT has reported its financial results for the fourth quarter and full year of 2023, indicating an overall period of growth for the supplier, although this was limited to single-digit revenue growth.
Q423
In the fourth quarter of 2023, total revenue saw a 3% rise year-on-year to $1.1bn. While PlayDigital’s revenue saw a decrease of 10% during the quarter, global gaming saw an ever-so-slight increase, but global lottery was the main driver of overall growth, increasing 7% to $681m.
When looking at operating income, all three of those main verticals saw growth for the company, with global gaming being the most significant at 17%; total operating income thereby rose 11% to $256m.
For total adjusted EBITDA, this also saw a positive change, going up from $419m in Q4 2022 to $454m in Q4 2023. Again, global gaming saw the highest increase, specifically by 23%.
FY23
Revenue for the whole of 2023 increased 2% year-on-year to $4.3bn, with global gaming and PlayDigital improving their revenue by 9% each, though global lottery decreased by 2% – in sharp contract to Q4.
Operating income likewise saw improvements, going from $922m in 2022 to just over $1bn in 2023. All three main verticals increased, though at 32%, PlayDigital saw the largest rise in operating income out of the three. Operating income for the year for PlayDigital was $65m and this was a record for it.
Total adjusted EBITDA for 2023 was set at $1.8bn, which was a record for the company, and also 7% up from 2022. This has mainly been put down to higher operating income and amortisation.
Net debt leverage improved to 2.9x, which is the lowest in the company’s history.
Comments
IGT CEO Vince Sadusky said: "We delivered a strong finish to the year in the fourth quarter, propelling full year 2023 profits to record levels.
"A compelling array of products and solutions fueled broad-based momentum in key performance indicators, driving margin improvement across our global lottery, global gaming, and PlayDigital segments. We believe the recent determination to split the business and create separate lottery and gaming pure play companies, each with experienced management teams and simplified business models, better positions each company to service customers and create significant value for stakeholders."
IGT CFO said Max Chiara added: "We achieved all of our financial goals in 2023.
"Robust cash generation funded incremental investments in the business and shareholder returns, while driving leverage to historically low levels, putting IGT in a strong financial position as we enter 2024. This gives us confidence in further expanding our investment in the business to fund future growth."
In related company news, NetBet recently agreed a partnership that will see IGT PlayDigital’s content made available on NetBet Casino in Denmark.
