- Q3'24 revenue of $587 million reflects sustained momentum in Italy and improved U.S. instant ticket and draw game wagers
- Operating income of $110 million includes $38 million restructuring charge associated with proactively optimizing general & administrative and operating activities following transformational actions over the last several years
- Adjusted EBITDA of $264 million and Adjusted EBITDA margin of 44.9% highlight attractive profit profile of pure play lottery business
- Year-to-date cash from operations of $724 million, with $489 million from continuing operations; continuing operations represents over 85% of year-to-date consolidated free cash flow
- Introducing Q4'24 and FY'24 outlook for continuing operations
"Our third-quarter and year-to-date performance underscores the strength and resilience of our business model marked by our scale, attractive margin structure, and strong cash generation," said Vince Sadusky, CEO of IGT. "Over the first nine months, we generated $1.9 billion in revenue, led by steady Italy growth and improved third quarter trends in the U.S. We are excited to build upon a solid foundation as we transform into a leaner, more focused global lottery pure play and capitalize on attractive industry dynamics."
"Sustained cash flow generation in the first nine months was predominantly driven by continuing operations," said Max Chiara, CFO of IGT. "The value of IGT is enhanced on a go-forward basis by a low pro forma leverage profile and by the launch of a cost optimization initiative as we look to right size the organization while supporting long-term growth initiatives."
Overview of Consolidated Third Quarter 2024 Results
All amounts from continuing operations | Quarter Ended Sept. 30, | Y/Y | Constant | |
|---|---|---|---|---|
2024 | 2023 | |||
($ in millions, except per share data) GAAP Financials: | ||||
| Revenue | 587 | 601 | (2) % | (3) % |
| Operating income | 110 | 163 | (33) % | (33) % |
| Operating income margin | 18.7 % | 27.1 % | ||
| Earnings per share - diluted | $(0.39) | $0.23 | NA | |
| Net cash provided by operating activities | 173 | 226 | (23) % | |
| Cash and cash equivalents | 501 | 483 | 4 % | |
| Non-GAAP Financial Measures: | ||||
| Adjusted EBITDA | 264 | 279 | (6) % | (6) % |
| Adjusted EBITDA margin | 44.9 % | 46.4 % | ||
| Adjusted earnings per share - diluted | $(0.02) | $0.04 | NA | |
| Free cash flow | 144 | 195 | (26) % | |
| Net debt | 5,156 | 5,327 | (3) % | |
| Note: Reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures are provided at the end of this news release | ||||
Key Highlights:
- Announced sale of Gaming & Digital business to funds managed by affiliates of Apollo Global Management, Inc. for $4.05 billion in cash
- Executed 10-year facilities management contract extension with North Carolina Education Lottery
- Awarded three-year primary instant ticket printing contract with Portugal's national lottery, following a competitive procurement process
- Strengthened partnership with La Française des Jeux, operator of the French national lottery, with signing of three-year instant ticket printing contract
- Successfully issued €500M 4.25% Senior Secured Notes due 2030; subsequent call of $500M 6.50% Notes due 2025
For further information on IGT’s financial results for the third quarter ended September 30, 2024, please refer to IGT’s website.
