Revenue for the second quarter of 2024 was $1.05 billion, according to the financial statistics released by International Game Technology (IGT). The $1.06 billion recorded during the same period of previous year and this amount are almost equal. Nevertheless, IGT experienced a decrease in operating income, which decreased from $251 million to $230 million in the previous year.
Significantly contributing to IGT’s income, the Global Lottery division reported a modest decline in earnings, from $621 million to $613 million. A strong comparison base from the previous year and varying jackpot activities were blamed for the decline in this category.
Growth in Gaming and Digital Segments
Despite the overall dip in operating income, IGT reported positive developments in its Global Gaming and PlayDigital segments. The Global Gaming sector generated $317 million in revenue, up from $313 million, thanks to increased sales of gaming machines and better placements in key markets.
The PlayDigital segment, focusing on digital and sports betting services, saw its revenue rise to $119 million, compared to $112 million in the same quarter last year. This growth was driven by expanding market opportunities and innovative product developments, reflecting IGT’s commitment to digital transformation.
Operational cash flow was robust, exceeding $460 million for the first half of 2024. This strong performance supports IGT’s debt reduction efforts and shareholder returns. “IGT delivered strong first-half results, including record operating income and Adjusted EBITDA net of separation and divestiture costs,” said Vince Sadusky, CEO of IGT. “Consistent investments in technology, game content, and other innovative solutions provide us a solid foundation to build from as we execute on our growth objectives.”
During the quarter, IGT announced a definitive agreement to sell its Gaming and Digital (IGT Gaming) business to Apollo Global Management’s funds for $4.05 billion in cash. Following this announcement, IGT withdrew its full-year 2024 financial outlook, pending the transaction’s completion and integration.
This strategic divestiture aligns with IGT’s broader plan to optimize its portfolio. The company intends to use the proceeds to reduce debt and invest in growth opportunities within its remaining business segments. CFO Max Chiara noted, “We generated over $460 million in cash from operations in the first half of the year and our balance sheet is as strong as ever. Our ample liquidity and manageable near-term debt maturities provide us significant flexibility in light of upcoming investments to extend and secure our long-term lottery contract portfolio for the coming years.”
IGT’s recent financial performance and strategic moves indicate a company focused on leveraging its strengths while positioning itself for future growth through strategic divestitures and strong operational cash flow.
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