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International Game Technology (IGT) reported a marginal year-on-year revenue increase of 1% to $1.07bn in Q1 2024.

Despite this modest growth, the company has raised its earnings guidance for full-year 2024.

Adjusted EBITDA for the quarter stood at $461m, at a margin of 43.1%.

Meanwhile, operating income mirrored the prior year at $256m, but the operating income margin of 24% surpassed expectations by approximately 400 basis points.

Excluding separation & divestiture costs, operating income grew by 7% to a record $273m.

The company’s global lottery division spearheaded revenue growth, marking a 6% year-on-year increase to $661m.

This surge was fuelled by robust product sales in key markets such as Canada, Singapore, and Germany, alongside sustained same-store sales strength in Italy.

However, IGT’s gaming & digital segment witnessed a nearly 7% decline in revenue to $406m.

This dip was attributed to decreased product sales due to fewer terminal unit shipments, and heightened intellectual property and software licence costs compared to the prior year.

However, the revenue reduction was partially offset by increased service revenue, driven by global installed base growth, and a 10% rise in iGaming revenue.

Management commentary

“Innovative game, hardware, and systems solutions drove better-than-expected Global Lottery and Gaming & Digital performance in the first quarter,” said IGT CEO Vince Sadusky.

“As a result, we are upgrading our full-year 2024 revenue and profit goals, which reflect broad-based momentum across key performance indicators in the balance of the year.

He added that the company is making progress on separating its global lottery division from gaming & digital and preparing for the business combination with Everi.

“We delivered a record organic profit performance in the first quarter, if we exclude separation and divestiture costs,” IGT CFO Max Chiara added.

“The company is operating from a position of strength with historically low net debt leverage, ample liquidity, and manageable near-term debt maturities.”

Outlook

Looking ahead, IGT anticipates Q2 2024 revenue to hover around $1.05bn, with a full-year 2024 revenue projection of at least $4.4bn.

This figure represents a slight upward revision from the initial estimate of $4.3bn to $4.4bn.  

The company forecasts an operating profit margin of 21%, or 24% when excluding separation and divestiture costs.

Additionally, cash from operations is expected to reach approximately $1bn, with capital expenditure estimated at around $500m.

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