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International Game Technology (IGT) has reported record-breaking adjusted EBITDA for the full-year 2023 ahead of its planned business split.

The company’s adjusted EBITDA reached $1.78bn for the year, marking a significant 7% increase compared to 2022.

This translated to an adjusted EBITDA margin of 41.3%, up from 39.4% in 2022. 

However, revenue experienced a more modest growth of just 2% year-on-year, reaching $4.31bn.

Growth was primarily fuelled by a 9% increase in both the Global Gaming and PlayDigital sectors, despite a 2% revenue decrease in IGT’s Global Lottery segment.

Q4 results

In Q4 2023, IGT generated revenue of $1.13bn, up 3% on Q4 2022.

Key highlights included a 7% year-on-year rise in Global Lottery revenue to $681m, driven by strong product sales and growth in Italy same-store sales.

Global gaming revenue remained flat compared to the prior year, as higher terminal product sales revenue and increased intellectual property revenue were offset by lower systems sales.

PlayDigital revenue, however, decreased 10% year-on-year to $59m in Q4, due to a one-time benefit related to a jackpot expense in the prior year, as well as lower sports betting volumes and hold rates in Rhode Island in the current year.

Adjusted EBITDA for Q4 2023 reached $454m, up 9% compared to Q4 2022.

Management commentary

“We delivered a strong finish to the year in the fourth quarter, propelling full-year 2023 profits to record levels,” said IGT CEO Vince Sadusky. 

“A compelling array of products and solutions fuelled broad-based momentum in key performance indicators, driving margin improvement across our Global Lottery, Global Gaming, and PlayDigital segments. 

“We believe the recent determination to split the business and create separate lottery and gaming pure play companies, each with experienced management teams and simplified business models, better positions each company to service customers and create significant value for stakeholders,” he added. 

In February, IGT revealed plans to spin off its land-based and digital businesses, which would then immediately merge with Everi Holdings in a $6.2bn deal.

The new entity would retain the IGT brand, while the company’s lottery division would continue as a standalone, pure-play business.

“We achieved all of our financial goals in 2023,” said IGT CFO Max Chiara.

“Robust cash generation funded incremental investments in the business and shareholder returns, while driving leverage to historically low levels, putting IGT in a strong financial position as we enter 2024. 

“This gives us confidence in further expanding our investment in the business to fund future growth.” 

2024 expectations

Looking ahead, IGT has outlined its expectations for Q1 2024 and full-year 2024, projecting revenue of approximately $1bn for Q1 and $4.3bn to $4.4bn for the full year. 

Additionally, the company anticipates an operating income margin of 20% to 21% for the full year, despite an expected negative impact from pre-closing separation and divestiture costs.

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