Global lottery supplier IGT reported revenue of US$587 million in the third quarter of 2024, down 2% year-on-year in the first reporting period in which the results of its Gaming & Digital business has been classified as discontinued operations.
The sale of the Gaming & Digital business to funds managed by affiliates of Apollo Global Management was unveiled in July in a deal that is expected to officially close in 2025.
With IGT now a lottery-only supplier, the company reported a subdued 3Q24 performance with the year-on-year operating income of continuing operations down 33% to US$110 million and Adjusted EBITDA down 6% to US$264 million. Gross profit of US$263 million was down from US$278 million in 3Q23.
IGT said it had enjoyed last year a better profit flow-through from US multi-state jackpot activity, as well as stronger terminal sales and more favorable product mix.
“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,” IGT CEO Vince Sadusky.
“Over the first nine months, we generated US$1.9 billion in revenue, led by steady Italy growth and improved third quarter trends in the US. 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.”
IGT is forecasting revenue of between US$640 million and US$690 million, and Adjusted EBITDA of between US$280 million and US$300 million for the fourth quarter. For FY24, revenue is expected to come in at US$2.50 billion to US$2.55 billion with Adjusted EBITDA of up to US$1.18 billion.
