International Game Technology Group Plc (IGT) has reported robust financial results for 2024, closing a transformative year for its business which has become a pure-play lottery systems technology supplier once more. 

As of H2 trading, IGT has undertaken a revision of its corporate accounts, to modify its financial reporting due to the $4.05bn sale of its Gaming & Digital business to funds managed by affiliates of Apollo Global Management Inc. 

For year trading, the NYSE technology firm reported corporate revenues of $2.5bn, a result which matched the standalone performance of its lottery unit in FY2023. 

Adjusted EBITDA stood at $1.17bn, with a margin of 46.6% (2023: 48%) reflecting ‘pure play lottery operations’. Full-year consolidated cash was $1.03bn (2023: $1.04bn), with $689mn derived from continuing operations (2023: $916mn) and $659mn in consolidated free cash flow.

Vince Sadusky, CEO of IGT, 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.

“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.”

Key metrics driving revenue growth were instant ticket and draw game sales across the US, Canada, and Italy. 

Italian same-store game sales grew by 4.1% YoY, combined with an increase in revenue from ‘non-wager-based service contracts’ across Europe. 

European growth was offset by FY2023 US multi-state jackpot activity and ongoing business costs relating to staff expenses and commercial contract renewals. 

Restructuring costs had a direct impact on full-year operating income, which stood at $686mn (2023: $752mn). Continuing operations income was $271mn (2023: $265mn), with a margin of 10.8% (2023: 10.5%). 

IGT full-year net debt stood at $4.8bn (2023: $5.2bn), positively affected by EUR/USD FX fluctuations – with a further $2bn committed debt reduction from the closing of the company’s Gaming & Digital segment. 

Q4 revenue ($651mn) was down 4% YoY (Q423: $681mn), but represented the best performing quarter for product sales on record following the previous year results.   

Quarterly operating income stood at $179mn (Q423: $197mn). Income from continuing operations was $116m (Q423: $73mn), with a margin of 17.9% (Q423: 10.7%). Adjusted EBITDA in Q4 was $290mn (Q423: $316mn) with a margin of 44.5% (Q423: 46.4%), fueled by increased investments in growth initiatives.

Full-year cash liquidity was $1.9bn, with $584mn in unrestricted cash reserves and $1.4bn additional borrowing capacity. 

Max Chiara, CFO of IGT, commented: “We delivered solid financial results in 2024, including robust cash flow generation to invest in the business, reduce debt, and return capital to shareholders.

“Our core, recurring business has a compelling low-to-mid single digit growth profile and provides a solid foundation as we head into our next CapEx cycle aimed at securing our portfolio and extending its duration to more than eight years.”

Moving Into 2025, IGT will target total revenue of $2.55bn-$2.65bn driven by ‘sustainable’ instant ticket services growth – ‘fully aligning with long-term shareholder expectations’. 

IGT has recently secured key agreements to enhance its presence in the Italian lottery market, including the renewal of its Lotto concession. Moving to strengthen its Italian business, the company has allocated €800m for the first two instalments of the new venture, which will compete to win the Italian government’s new lottery tender, initiated in March 2025. 

IGT said: “The bids are due by 17 March. Once they are in, the awarding commission will be established. There are no specific dates for the [licence] awarding but we expect it to happen in Q2. 

“The time between the award and the new licence needs to allow for the transition of the infrastructure. The first payment will be €500m at the time of the award in Q2, and the second €300m in November Q4.”

Source