A 17% jump in global gaming revenue helped offset slipping global lottery revenue as International Game Technology posted increases in net income and revenue for the first quarter.
Adjusted earnings, which exclude one-time costs, and revenue both topped Wall Street forecasts.
In an 8-K filing with the Securities and Exchange Commission, London-based IGT said net income was $67 million, or 11 cents per diluted share, for the three months ended March 31, down from net income of $117 million, or 39 cents per diluted share, a year earlier.
Adjusted earnings were 49 cents per share, topping the 48-cent-per-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 3.7% to $449 million from $433 million.
Revenue rose 1% to $1.06 billion from $1.05 billion, topping the $1.03 billion forecast of Seeking Alpha-polled analysts.
Total global lottery revenue fell 8% to $624 million, although same-store sales in the segment, sales on operations a year old or older, rose 8%. That’s the fastest growth in the last six quarters. Italy same-store lottery sales rose more than 10% on higher sales for draw games and instant tickets.
Global gaming revenue rose 17% to $381 million, as service and product revenue both rose.
PlayDigital revenue also rose 17% to $55 million, driven by icasino with contributions from the iSoftBet acquisition and organic growth. IGT acquired iSoftBet for $174 million in April 2022; the deal more than doubled IGT’s PlayDigital content library to about 225 proprietary games.
“Compelling innovation and sustained strength in customer and player demand are fueling momentum across our global lottery, global gaming, and PlayDigital segments,” IGT Chief Executive Officer Vince Sadusky said in a statement. “We believe the focused execution of our strategy to grow, innovate, and optimize should create significant value as we progress toward our 2025 goals.”
Earlier Tuesday, IGT said it signed a licensing deal to develop new chance-based casual games based on International Game Technology content. Financial terms weren’t disclosed.
On April 10, IGT signed a three-year contract extension to continue providing sports betting technology to the Rhode Island Lottery. Financial terms also weren’t disclosed.
IGT shares fell 44 cents, or 1.61%, Tuesday to close at $26.96 on the New York Exchange. The shares continued down after hours, dropping 36 cents, or 1.34% to settle at $27.32.
