CasinoBeats has analyzed crucial financial figures from key players in the gaming industry, spotlighting third-quarter results from IGT, Flutter Entertainment, and GiG, along with the latest regulatory developments in New Zealand.
IGT reported third-quarter revenue of $587 million, reflecting a decrease of 2% compared to $601 million in the same period last year. When adjusted for constant currency, the decline is 3%. For the year through September 30, IGT's revenue reached $1.86 billion, a slight increase from $1.85 billion in 2023. The company attributed its quarterly revenue to ongoing growth in Italy and better performance in US instant ticket and draw game wagers.
Gross profit for Q3 also fell by 5% year-over-year to $263 million, down from $278 million in 2023, while operating income saw a more significant drop of 33% to $110 million compared to $163 million last year. Year-to-date figures reflected a 2% gross profit decline to $882 million and a 9% drop in operating income to $507 million. The operating income was significantly impacted by a $38 million restructuring charge due to the OPtiMa 3.0 initiative, which aims to optimize administrative and operational functions.
IGT's net income for Q3 was $43 million, a decrease from $123 million the previous year. Income from discontinued operations was $88 million, compared to $46 million in 2023, but the loss from continuing operations was $46 million, reversing from a $77 million profit last year. Adjusted EBITDA for the quarter was $264 million, down 6% year-over-year, with a margin of 44.9%. Year-to-date adjusted EBITDA fell by 2% to $880 million with a margin of 47.3%. IGT highlighted the profitable nature of its lottery business in these results.
CEO Vince Sadusky remarked on the company’s performance, emphasizing the strength and adaptability of IGT’s business model, which has shown resilience amid significant changes in the industry. He noted growth in Italy and improvements in US trends, indicating a promising direction as IGT transitions into a more focused global lottery business.
In another significant development, Flutter Entertainment announced a revenue increase of 27% year-over-year, reaching $3.25 billion in Q3, up from $2.56 billion. The average monthly players also saw a 16% rise, totaling 12.9 million. Excluding US operations, revenue surged by 15% to $2 billion. The company reported a reduced net loss of $114 million for the quarter, an improvement from the $262 million loss in 2023, aided by strong revenue growth despite facing non-cash impacts related to accrued intangible amortization and fair value losses.
Adjusted EBITDA for Flutter increased by 74% to $450 million, achieving a margin of 13.9%. Group EBITDA, when excluding the US, grew by 24% to $392 million. However, net cash from operating activities dropped by 48% to $290 million, and free cash flow plummeted by 74% to $112 million. Flutter’s guidance for 2024 was raised by 1%, reflecting strong performance expectations, but the company noted recent unfavorable sports results in the ongoing quarter.
The New Zealand Government has approved new regulations for online casinos, enabling up to 15 operators to apply for licenses. Announced by Internal Affairs Minister Brooke van Velden in July, the new regulatory framework aims to be in place by early 2026, focusing on minimizing harm, aiding tax collection, and protecting consumers. Online gambling will be restricted to individuals aged 18 and older, and operators will be prohibited from offering sports betting or lottery.
Additionally, strict advertising regulations will be in place, allowing limited promotional activities for licensed operators while maintaining a ban on online casino sponsorship. The regulatory framework will also enforce age verification requirements and penalties of up to NZ$5 million for non-compliance.
In the realm of financial performance, Gaming Innovation Group (GiG) reported more than €7 million in revenue for Q3 2024, but faced an adjusted EBITDA loss exceeding €1 million. This revenue represents a 21% decline from the previous year. The company also recorded an operating loss of nearly €10 million.
Despite the setbacks, CEO Richard Carter expressed optimism, labeling Q3 as a pivotal quarter for GiG, which has recently separated from Gentoo Media. The company generated €7.4 million in revenue, down from €9.3 million the year prior, influenced by significant one-off revenue from a previous sale included in last year's results.
GiG's real revenue, excluding client exits and singular enterprise income, registered at €7.3 million, marking a 26% year-over-year increase. The company successfully achieved listing on the Nasdaq First North Premier Growth Market, which aims to boost its marketing initiatives globally.
Following its split from GiG, Gentoo Media celebrated its 15th consecutive quarter of positive revenue growth, reporting €30.4 million for Q3 2024, a 35% increase year-over-year. CEO Jonas Warrer highlighted the company’s sustained performance driven by diversified strategies. Adjusted EBITDA for Gentoo reached €14.6 million, reflecting a 48% margin, while special items from the separation amounted to a maximum of €600,000. The company reported strong operating cash flows and significant contributions from revenue share agreements, particularly from Europe and the Americas.
