A 13% rise in global gaming revenue and a 38% increase in PlayDigital revenue helped International Game Technology’s second-quarter revenue top Wall Street forecasts, though adjusted earnings per share missed.
In a statement Wednesday, London-based IGT said it had net income of $90 million for the three months ended June 30, compared with $34 million a year earlier. The company earned 23 cents per share, reversing a loss of 2 cents per share.
Adjusted diluted earnings per share, which exclude one-time costs, were 45 cents per share, down from 57 cents per share a year earlier, reflecting a higher quarterly effective tax rate. The latest result fell short of the 48-cents-per-diluted-share consensus forecast of analysts surveyed by Seeking Alpha.
Adjusted earnings before interest, taxes, depreciation, and amortization, a cash-flow measure that also excludes one-time costs, rose 8.3% to $443 million from $409 million.
Revenue rose 3.9% to $1.06 billion from $1.02 billion and topped the $1.03 billion estimate of analysts polled by Seeking Alpha.
In the quarter, IGT’s global gaming revenue was $373 million, up from $330 million in the prior year, bolstered by record U.S. and Canada unit shipments, higher global average selling prices, and installed-base growth. PlayDigital revenue rose to $59 million from $43 million a year earlier, helped by strong player demand and contributions from iSoftBet, an internet-gaming content provider and third-party game aggregator IGT bought in 2022. These gains offset a 4% drop in global-lottery revenue to $624 million.
Also during the quarter, IGT secured a 10-year licensing extension with Sony Pictures Television for exclusive rights to the Wheel of Fortune brand across several gaming and lottery platforms as nonexclusive rights to distribute Wheel of Fortune content for free-to-play social casinos.
IGT was also part of a consortium that received a 20-year license to operate games for Brazil’s Minas Gerais State Lottery. And IGT executed 10-year contracts in Malta for lottery technology and instant-ticket printing, plus secured an eight-year ilottery contract in Connecticut.
“IGT has made important strategic progress over the last few years,” Chief Executive Office Vince Sadusky said in a conference call with analysts and journalists. He later added, “We reorganized the business by global product responsibility, simplifying our organizational structure and our financial disclosures. We monetized noncore assets at attractive valuations and significantly reduced structural costs.”
Sadusky also said customer demand for his company’s products remains robust.
“I think the cash flow of our customers, our casino operators, remains at record-high levels,” he said. “As a result, they continue to invest in their facilities. And that’s resulted, I think, in a sales funnel as we look out to the third quarter as … pretty good, pretty strong.”
During the call, IGT said it raised its 2023 revenue expectations to $4.2 billion to $4.3 billion, reflecting the upper half of the previous range. The company also honored Fabio Cairoli, who led the company’s global-lottery business until he died in July.
IGT shares fell 74 cents, or 0.74%, Tuesday to close at $33.09 on the New York Stock Exchange. The shares sank further after hours, sliding 9 cents, or 0.27%, to settle at $33.
