Double-digit-percentage revenue gains in each of its business segments brightened International Game Technology’s third quarter. Global gaming revenue rose 33.7% to a seven-quarter high.
The London-based company had gains in cash flow, earnings, and revenue; the latter two topped Wall Street forecasts.
In a statement Tuesday, IGT said net income was $101 million, or 31 cents per diluted share, for the three months ended Sept. 30, reversing a net loss of $102 million, or 62 cents per share, a year earlier.
The latest result topped the average 8-cents-per share forecast of analysts surveyed by Seeking Alpha.
Adjusted earnings before interest, taxes, depreciation and amortization, a cash-flow measure that excludes one-time costs, rose 41.8% to $407 million from $287 million.
Revenue rose 20.6% to $984 million from $816 million and topped the average $981 million forecast of Seeking Alpha-polled analysts.
In a conference call with analysts and journalists, IGT Chief Executive Officer Marco Sala touted his company’s lottery segment strength. He said same-store sales were strongest in the company’s main U.S. and Italy markets, both up double-digit percentages from a year earlier. IGT also landed several new contracts, Sala said, including a 10-year facilities-management contract with the Connecticut Lottery, displacing an incumbent.
Abroad, Sala said, IGT entered a seven-year deal to upgrade French lottery operator Française des Jeux to the company’s advanced Aurora platform and secured a new instant-ticket service contract with Germany’s WestLotto.
In all, IGT’s global lottery revenue rose 14% to $652 million, global gaming revenue rose 33.7% to $289 million from $216 million, and digital and betting revenue rose 37% to $43 million.
Chief Financial Officer Max Chiara said solid increases in active units, yield, and number of machines sold helped drive the global-gaming-revenue increase. Terminal-service revenue increased 44%.
Chiara added that IGT cut net debt by $1.2 billion year to date, helped by strong cash flow generation and proceeds from selling Italy gaming businesses.
IGT raised its 2021 operating income outlook to about $900 million from about $800 million and fiscal 21 revenue to $4.1 billion, ahead of the $4.04 billion consensus Wall Street estimate. IGT also declared a quarterly cash dividend of 20 cents per share, payable Dec. 7 to shareholders of record on Nov. 23.
This week, IGT named Gil Rotem president of internet gaming; he’ll work to globally expand IGT’s PlayCasino business, which includes internet gaming, poker, and bingo. In the third quarter, expansion to new markets, including Michigan, Alberta, Finland, and Sweden, and existing customers in New Jersey and Pennsylvania stoked internet gaming growth, Sala said.
IGT shares fell $1.18, or 3.66%, Wednesday to close at $31.08. The shares rebounded after hours, rising 2 cents, or 0.06%, to settle at $31.10. IGT’s stock price has doubled in 2021.
