Global gaming and digital entertainment company, International Game Technology (IGT), has publicized its financial performance for the initial three months of 2023. The company reported a total income of $1.06 billion (approximately £840.6 million or €966.2 million), marking a slight increase of 0.8% compared to the same period in the previous year.
The chief executive officer of IGT, Vince Sadusky, expressed satisfaction with the quarter’s results, stating that they surpassed anticipated outcomes and reinforced the company’s outlook for the entire year.
Sadusky emphasized that the company’s performance in the first quarter exceeded expectations, placing them on a solid path to achieve their full-year objectives.
He attributed the quarter’s success to the strong performance of IGT’s key business segments, namely Global Lottery, Global Gaming, and PlayDigital.
While revenue from the Global Lottery segment experienced a decrease of 8.2%, reaching $624 million, the Global Gaming and PlayDigital segments witnessed significant growth, with revenue increases of 17.2% and 17.0%, respectively.
Sadusky further highlighted the role of innovation and sustained customer and player demand in driving momentum across the company’s core segments. He emphasized that these factors were reflected in the strong key performance indicators achieved during the quarter.
IGT attributed the decline in Global Lottery revenue to the divestment of its Italian commercial services business.
In terms of segment performance, the Global Gaming segment generated revenue of $381 million, while PlayDigital revenue surpassed $55 million.
Geographically, revenue in the United States and Canada reached $666 million, representing an increase of 11.4%, while revenue in Italy experienced a decline of 18.4%.
Income from services constituted a substantial portion of the quarter’s earnings, reaching $846 million, while product sales made up the remaining $215 million.
Service expenses decreased by 7.0% during the quarter, reaching $398 million. Sales and R&D expenses were $217 million, down 12.4%, while product cost of goods sold was $127 million, up $5 million from the previous year.
Research and development expenses also grew by $5 million, reaching $62 million.
Overall, operating expenses reached $805 million, a 0.7% increase, resulting in operating profit of $255 million, a slight increase of $3 million.
Total non-operating expenses, including interest expense, foreign exchange losses, and other non-operating costs, amounted to $101 million, a 44.3% increase.
Earnings before taxes were $155 million. After an income tax provision of $87 million, net income for the quarter totaled $67 million, a 42.7% increase from the previous year.
Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) was $449 million, a 3.7% increase.
**Prospects for the Second Quarter**
IGT has provided guidance for the second quarter of 2023, expecting revenue of $1 billion and an operating margin of 22%-24%.
Full-year revenue is anticipated to be between $4.1 billion and $4.3 billion, with operating cash flow projected to be between $900 million and $1 billion.
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