IGT’s Q2 2023 Reports Released, Over $1B in Revenues
International Game Technology PLC (IGT), the multinational slots and casino platform developer, has reported its financial results for the second quarter of 2023.
The company’s performance presents a mixed bag, with total revenue reaching $1.06bn, but its global lottery division experiencing a decline.
“Our second quarter and first half results reflect solid revenue and profit momentum across all business segments,” Vince Sadusky, CEO of IGT, said in the report’s press release.
“We achieved the high end of our outlook by executing key strategic initiatives and growing demand for IGT’s compelling content and solutions. We are solidly on track to deliver on our 2025 objectives and remain focused on unlocking the intrinsic value of IGT’s market-leading businesses.
Revenue Growth Amid Global Lottery Division’s Decline
IGT’s total revenue for Q2 2023 was reported at $1.06bn, a significant figure that showcases the company’s overall robust performance.
This figure was driven by strong growth in the company’s global gaming division, which saw a 35% increase in product sales compared to the same period last year.
However, the company’s global lottery division did not fare as well. The division, which has been a consistent performer for IGT, experienced a 4% decline on Q2 2022.
It was, however, still the top performer of all IGT’s operations, posting $624 million in revenues.
Despite those potential worrying figures, IGT management were not overly concerned.
“Our year-to-date performance showcases the strong cash generation of the business. We have a solid foundation to build from as we continue to invest in our growth objectives, further reduce debt, and return capital to shareholders,” said CFO Max Chiara.
“Based on our first-half results, we are confidently raising our full-year 2023 revenue and operating margin outlook.”
New Licenses and Growth Strategy
Despite the mixed results, IGT remains optimistic about its future prospects. The company is focused on its growth strategy, which includes expanding its digital and betting offerings.
Chiara emphasized the company’s commitment to that effect.
“We are focused on supporting our growth strategy, which includes expanding our digital and betting offerings, while also managing our cost structure to drive efficiencies and support profitability,” he said.
Those expansions included an expanded licensing deal with Sony Pictures for a wider range of Wheel of Fortune game show branded slots, and the approval of its license to offer sports betting in the U.S. territory of Puerto Rico.
Late in June, it also signed a deal with the soon-to-be-launched and upgraded Rio Hotel & Casino in Las Vegas to supply casino floor tech.
It wasn’t all good news during the quarter for IGT. Back in early June, it finally gained approval for its joint $419 million lawsuit settlement regarding the actions of its former “social casino” subsidiary, DoubleDown. Neither party admitted wrongdoing, but it was still a large expense on the books.
Overall, IGT’s Q2 2023 results present a picture of a company navigating a challenging landscape with resilience and strategic focus. Despite the decline in its global lottery division, the company’s overall revenue growth and commitment to its growth strategy suggests a positive outlook for the future.