Key points:
- Revenue decreased by 2% year-on-year to $587m
- Operating income fell 33% to $110m
- Adjusted EBITDA went down 6% to $264m
International Game Technology (IGT) has released its Q3 report for the quarter ending 30 September 2024.
Revenue decreased by 2% when compared to figures in Q3 2023, with total revenue this quarter coming to $587m.
The revenue accumulated from instant ticket services grew 1% to $477m, but US multi-state jackpot wager-based revenue fell 56% to $21m and upfront licence fees also fell, coming to -$48m.
When looking at the figures by geographical locations, revenue in the US and Canada fell 7% to $284m, while the rest of world fell 3% to $75m. These are only slightly offset by Italy increasing 5% to $228m.
This downward trend was also reflected in operating income, which fell 33% to $110m, while net cash provided by operating activities decreased 23% to $173m.
Adjusted EBITDA also went down by 6% to $264m, with an adjusted EBITDA margin of 44.9%.
Total gross profit fell 5% to $263m, which IGT explains through strong terminal sales in the same period last year and lower legal costs, while this year also saw larger investments into growth initiatives.
Good to know: During this quarter, on 26 July, IGT announced the sale of its Gaming & Digital sectors to Apollo Funds for $4.1bn in cash.
Finally, loss from continuing operations was $46m this quarter, compared to an income of $77m in Q3 2023.
Vince Sadusky, CEO of IGT, said: "Our third quarter and year-to-date performance underscores the strength and resilience of our business model marked by our scale, attractive margin structure and strong cash generation.
"Over the first nine months, we generated $1.9bn in revenue, led by steady Italy growth and improved third quarter trends in the US. We are excited to build upon a solid foundation as we transform into a leaner, more focused global lottery pure play and capitalise on attractive industry dynamics."
When looking at the figures from the perspective of the first nine months of 2024, revenue has increased from $1.85bn last year to $1.86bn this year.
Max Chiara, CFO of IGT, said: "Sustained cash flow generation in the first nine months was predominantly driven by continuing operations.
"The value of IGT is enhanced on a go-forward basis by a low pro forma leverage profile and by the launch of a cost optimisation initiative as we look to right size the organisation while supporting long-term growth initiatives."
