IGT revenue down 4% in Q4, still second-highest quarter on record
International Game Technology (IGT) has reported a decline in its year-on-year revenue for the fourth quarter. The company registered $651 million in revenue for the quarter, down 4 percent from the same period in 2023.
The drop was attributed to “comparisons with record product sales revenue in the prior year.” Despite the decline, the company noted that the revenue was still the second-highest quarter for product sales revenue in IGT’s history. For the , income from continuing operations was up by 60 percent yearly, amounting to $116 million. The associated margin registered was 17.9 percent.
IGT’s top-performing segment in the fourth quarter was its instant ticket & draw wager-based revenue, which saw a 2 percent year-over-year increase, reaching $511 million. This was offset by US multi-state jackpot wager-based revenue dropping by 21 percent year-over-year, totaling $26 million. For the quarter, product sales revenue fell by 32 percent year-over-year, amounting to $60 million.
Full-year digits
For the full-year 2024, IGT’s total revenue was $2.51 billion. This marked a one percent decline from the same period in 2023. Income from continuing operations increased by 2 percent year-over-year, totaling $271 million. The revenue decline was primarily driven by lower product sales and a decline in jackpot-based revenues, but this was offset by strong growth in instant ticket and draw game sales in key markets like the US, Canada, and Italy.
Looking ahead to fiscal year 2025, IGT is expecting revenue growth in the low-to-mid single digits. The company has projections ranging from $2.55 billion to $2.65 billion. The company believes this growth will be driven by sustainable instant ticket services and low-single-digit increases in global same-store sales. Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) for FY25 is expected between $1.1 billion and $1.15 billion.
IGT CEO Vince Sadusky said, “Our unmatched capabilities in developing world-class Lottery solutions and innovative game content support several important investments to drive long-term growth and shareholder returns. We are well-positioned to continue strengthening our global lottery leadership”.
The executive also commented on the sale of its Gaming & Digital business. He said, “2024 was a year of momentous transformation with the conclusion of our strategic review and the announced sale of our Gaming & Digital business for $4.05 billion in cash”.
IGT and Everi merger
Last year, International Game Technology PLC (IGT) and Everi Holdings Inc. announced a definitive agreement for their simultaneous acquisition by a newly formed holding company owned by funds managed by affiliates of Apollo Global Management, Inc. The all-cash transaction values the acquired businesses at approximately $6.3 billion.
In February last year, IGT and Everi had entered into agreements for IGT to separate its Gaming & Digital business (IGT Gaming) via a taxable spin-off to IGT shareholders, and then immediately combine this business with Everi. Under the new agreements, the Apollo Funds will acquire IGT Gaming and Everi. Following the closing, IGT Gaming and Everi will be privately owned companies that are part of one combined enterprise.
