Top Online Lottery Provider IGT Reports Strong Q2 2024 Results
Company was recently acquired by Apollo, is heavily focused on Global Lottery portfolio
2 min
International Game Technology (IGT) has presented its latest financial health report, showing robust results for the second quarter of 2024. The report, which management discussed in a conference call and webcast on July 30, reflects IGT’s continued success in bolstering its Global Lottery portfolio and advancing key strategic initiatives.
For Q2 2024, IGT’s revenue was $1.05 billion and its operating income reached $230 million, aligning with market expectations. Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) for the quarter reached $420 million. The company achieved record operating income and Adjusted EBITDA for the first half of 2024, excluding separation and divestiture costs, building on a successful first quarter.
“IGT delivered strong first half results, including record operating income and Adjusted EBITDA net of Separation and divestiture costs. Consistent investments in technology, game content, and other innovative solutions provide us a solid foundation to build from as we execute on our growth objectives. The recently announced sale of our Gaming & Digital business for $4.05 billion in cash is an important step in unlocking the intrinsic value of IGT’s best-in-class businesses.”
— IGT CEO Vince Sadusky
The company also generated over $460 million in cash from operations and more than $260 million in free cash flow during the first six months of 2024.
Key strategic moves and developments
IGT’s strategic initiatives have seen the company secure several important contracts and introduce new products. The company signed a seven-year facilities management contract with the Colorado Lottery, ensuring a long-term partnership that will enhance lottery operations in the state.
In addition, IGT extended its relationship with the Mississippi Lottery Corporation for another three years. Furthermore, IGT secured new and extended instant ticket contracts. It has a new five-year agreement with ONCE in Spain.
In the iLottery arena, IGT signed a five-year content deal with the Atlantic Lottery Corporation. At about the same time, it launched iLottery operations in Connecticut. This expansion into digital lottery solutions highlights IGT’s ability to adapt to changing market demands.
An important development for IGT is the announced sale of its Gaming & Digital business to funds managed by affiliates of Apollo for $4.05 billion in cash. IGT expects to wrap up the transaction sometime in the third quarter of next year
“With these results and strategic moves, we are well-positioned to continue our growth and innovation trajectory,” concluded Sadusky.
Financial performance analysis
IGT’s consolidated revenue remained stable at $1.05 billion, with Global Lottery revenue slightly decreasing by 2% year-over-year to $613 million. This decline was due to a software license sale in 2023, according to the company.
Conversely, Gaming & Digital revenue increased by 1% to $436 million. This was driven by growth in the installed base and higher intellectual property and software license sales.
Operating income for Q2 2024 was $230 million, down from $251 million in the same period last year. However, excluding $26 million in separation and divestiture costs, operating income increased to $256 million. The Gaming & Digital segment saw an operating income rise to $103 million from $89 million the previous year, benefiting from high-margin intellectual property and software sales, alongside reduced supply chain costs.
The company’s Adjusted EBITDA stood at $420 million, compared to $443 million in Q2 2023. Excluding separation and divestiture costs, Adjusted EBITDA was stable at $446 million, with an expanded Adjusted EBITDA margin of 30 basis points.
IGT reported total liquidity of $1.7 billion as of the end of June, including $400 million in unrestricted cash and $1.3 billion in additional borrowing capacity from undrawn credit facilities. Net debt remained at $5.1 billion, with a net debt leverage ratio of 2.9x, consistent with Dec. 31, 2023.
The company confirmed a quarterly cash dividend of $0.20 per common share, with a record date of Aug. 13 and a payment date of Aug. 27.
