The global gaming and PlayDigital divisions of IGT have shown strong growth each year, masking a stagnant flagship lotteries division during the second quarter 2023.
IGT published its Q2 Report and reported total corporate revenues of $1.06bn. This is a 3% increase year-over-year, as the digital and gaming wings of the group show double-digit growth. The global gaming technology company has reported a solid quarter, and raised its guidance for revenue and income for the full year.
Global gaming revenue grew by 14% in Q2 to $373m, mainly due to record North American cabinet shipments as well as higher global selling prices.
The PlayDigital unit showed the biggest growth, with the PlaySports platform, which was rolled out in the US earlier this year. The segment’s revenue jumped 38% year-on-year to $59m, largely due to the iSoftBet company it purchased for $140m.
IGT cited some of the major achievements during Q2 that helped drive these growing divisions. These included the 10-year deal with Sony Pictures to license the Wheel of Fortunebrand which helped launch the BeMGM Wheel of Fortune Online Casino in New Jersey.
As it has enjoyed success in selling its new cabinets, the firm has also rolled out their Advantage gaming system at Rio Hotel & Casino.
“Our results for the second quarter and first half reflect a solid revenue and profitability momentum across all segments,” said Vince Sdusky CEO of IGT. We achieved our high-end outlook by executing strategic initiatives, and increasing demand for IGT’s compelling content and solution.
We are on track to achieve our 2025 goals and continue to focus on unlocking the value of IGT’s market-leading business.
IGT’s flagship unit, the lottery, continued to experience a long-term trend that saw revenues decline. Global lottery is still the biggest contributor to revenue with $624m in Q2, but it represents a 5% drop on an annualized basis.
IGT is currently undergoing a review of its future that could include the partial sale or gaming and digital unit. The corporate management will be looking to the lottery sector for growth to achieve long-term success.
The majority of this decline can be attributed to IGT’s Italian Commercial Services business, which was sold last September. Therefore, the Q4 report of the company could provide a truer picture of the state of the lottery unit.
IGT’s bottom-line was positively impacted by the lottery unit, as the $332m adjusted EBITDA remained constant in Q2’22 despite the Italian sales.
PlayDigital’s contribution to the company’s overall success grew 82% to $22m. IGT’s EBITDA totalled $443m in 2014, an increase of 7%.
IGT’s Q2 operating income was $251m, an increase of 9% over the previous year, driven by the PlayDigital unit, which saw a 125% growth.
IGT’s full-year forecast for 2023 has been raised thanks to the quarter’s financial and operational success. First, the group expects a Q3 revenue around $1bn with an operating profit of 223%.
IGT is expecting revenue in the range of $4.2bn to $4.3bn for the entire year with a margin of operating income of approximately 23%.
Our year-to date performance demonstrates the strong cash flow generation of the company. We have a strong foundation on which to build as we continue investing in our growth goals, reduce debt further, and return capital back to shareholders,” said Maxi Chiara CFO of IGT. We are confidently increasing our revenue and operating margin forecast for 2023 based on our first-half performance.