Driven by worldwide lottery sales of $661 million, International Game Technology reported first-quarter revenue of almost $1.1 billion, a one percent increase over 2023. Operating income was $256 million, on a par with the first quarter of last year.
When separation and divestiture costs related to the pending Everi Holdings merger were backed out, IGT disclosed record operating income of $273 million, a seven percent increase.
The one blot on the balance sheet was a decline in gaming and igaming revenues from $436 million in early to 2023 to $406 million. According to a formal IGT statement, this “reflects lower product sales due to fewer terminal-unit shipments in the current year and elevated intellectual property and software licenses in the prior year, partially offset by higher service revenue driven by growth in the global installed base.”
Cash flow was $443 million. After separation and divestiture costs were removed, it widened to $461 million.
Quarterly highlights include a contract extension with the United Kingdom’s National Lottery, as well as one with the Maryland Lottery. IGT’s Mystery of the Lamp game won Top Performing New Premium Game at the “2024 EKG Slot Awards Show.” And the company won a contract to supply video lottery terminals in Quebec.
“Innovative game, hardware, and systems solutions drove better-than-expected Global Lottery and Gaming & Digital performance in the first quarter,” explained IGT CEO Vincent Sadusky. “As a result, we are upgrading our full-year 2024 revenue and profit goals, which reflect broad-based momentum across key performance indicators in the balance of the year.
“We continue to make progress on separating Global Lottery from Gaming & Digital and preparing for the proposed transaction with Everi,” Sadusky noted.
Added CFO Max Chiara, “We delivered a record organic-profit performance in the first quarter, if we exclude separation and divestiture costs.” IGT, he said, “is operating from a position of strength, with historically low net debt leverage, ample liquidity, and manageable near-term debt maturities.”
IGT reported liquidity of $1.7 billion, including $1.3 billion in undrawn credit, and $5.2 billion in net debt.
