Net profit sees dip

IGT posts 2% revenue increase for 2023, driven by Global Gaming and PlayDigital growth

Reading time 2:04 min

International Game Technology (IGT) has marginally improved its revenue to $4.31 billion for the twelve-month period ending on December 31, 2023, up 2% from the previous year's figure of $4.22 billion.

The net profit for the year stood at $156 million, reflecting a decrease of 43.3% from $275 million in 2022, while total adjusted EBITDA surged to an all-time high of $1.78 billion, marking a 6.9% increase from the previous year.

This growth was primarily driven by the performance of its Global Gaming and PlayDigital segments. Meanwhile, Global Lottery revenue experienced a decline.

However, during the final quarter of 2023, there were slight improvements in Global Lottery revenue, alongside growth in other segments, contributing to a strong finish for the year.

Breaking down 2023 results

For the financial year 2023, IGT saw a decline in service revenue by 0.4%, amounting to $3.35 billion. However, this was offset by a notable increase in product sales revenue, rising by 11.2% to $963 million.

Despite the aforementioned decline, Global Lottery revenue remained the primary source of revenue for IGT, totaling $2.53 billion, albeit down by 2.4%. This decline was attributed to the sale of its Italian commercial services business, with revenue adjusted to a 6% increase when excluding this impact.

Global Gaming revenue experienced a significant uptick of 9.1% year-on-year, reaching $1.55 billion, attributed to strong performance across key performance indicators.

PlayDigital revenue also saw growth, rising by 9.1% to $228 million for the year, marking a new record for the division. This increase was primarily driven by the expansion of iGaming across various markets.

Operating expenses grew marginally, reaching $3.31 billion. Meanwhile, non-operating costs increased by 11.7% to $372 million, resulting in a pre-tax profit of $629 million, up 6.8% from the previous year.

Officials confident on future performance

"We delivered a strong finish to the year in the fourth quarter, propelling full year 2023 profits to record levels," said Vince Sadusky, CEO of IGT. "A compelling array of products and solutions fueled broad-based momentum in key performance indicators, driving margin improvement across our Global Lottery, Global Gaming, and PlayDigital segments."

According to Sadusky, the recent determination to split the business and create separate lottery and gaming pure play companies, better positions each company to service customers and create significant value for stakeholders going forward.

The make-up of IGT will be rather different going forward. IGT is merging its Global Gaming and PlayDigital divisions with Everi to create a “comprehensive and diverse” global enterprise. 

Global Gaming and PlayDigital will be spun off and combine with Everi, with IGT shareholders owning around 54% of shares in the combined business and Everi stockholders the remaining 46%. The merger values the enlarged operation at $6.20 billion.

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

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