IGT released its financial performance for the third quarter of 2023, which concluded on Sept. 30th. The gaming company has maintained its performance from the previous year, matching the revenue figure of $1.06 billion, and it is likely that the fourth quarter of the year will also replicate this pattern.
In an IGT press release, the current CFO, Max Chiara, said:
“We are pleased with the financial results we delivered in the third quarter, including top-line growth, margin expansion, and strong cash flow generation.”
Highlights From IGT’s Financial Result
- The company generated $1.06 billion in revenue.
- Adjusted EBITDA increased by 8%, resulting in $433 million from $402 million in Q3 2022.
- Operating income reached $239 million, increasing by 13%.
- A quarterly cash dividend of $0.20 per common share is to be paid on Dec. 13, 2023.
Consolidated Revenue
IGT racked up $1.06 billion, matching the third quarter of 2022. Within this, Gaming Lottery revenue was $601 million, showing a 4% decline from the prior year. Global Gaming revenue reached $409 million, marking an 8% increase from Q3 2022, influenced by growth in installed bases and software sales. PlayDigital’s revenue remained stable at $55 million, unchanged from the previous year.
“The strength of our leadership positions across Global Lottery, Global Gaming, and PlayDigital is evident in our third quarter and year-to-date results. Excellent momentum in key performance indicators is driving revenue growth and even stronger profit expansion,” said the CEO of IGT, Vince Sadusky.
Operating Income
In the third quarter of this year, the company reported an operating income of $239 million, marking a 13% increase compared to the third quarter of 2022, when it stood at $211 million. This increase can be attributed to the positive contributions from both Global Gaming and PlayDigital, resulting in an expanded operating margin of 22%, which is a 250 basis point increase. PlayDigital’s operating income also showed significant growth, surging by 32% to reach $16 million. While Global Gaming’s operating income experienced growth, increasing by 42% to reach $93 million, Global Lottery maintained its operating income at $206 million.
IGT Launches New Ventures in Q3 2023
While the gaming company aimed to sustain its current product portfolio for profit stability, it simultaneously introduced several new additions, which included:
- The introduction of the PeakBarTop cabinet with a sports betting feature
- The launch of a new game title in collaboration with Caesars Palace
- The implementation of a cloud-based iLottery platform for Totalizator Sportowy in Poland
- A partnership agreement to provide PlaySports QuickBet kiosks to Wisconsin’s St. Croix Casinos
- The installation of PlaySports technology at Mississippi’s Palace Casino Resort
While the financial report has shown minimal growth in revenue and operating income, Sadusky remains optimistic about the new inventories the company has gotten its hands on.
“With a compelling pipeline of innovative products and solutions showcased at recent tradeshows, I am confident we can achieve our near and medium-term goals as we focus on unlocking the intrinsic value of IGT’s market-leading assets.”
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