Despite sales growth, IGT’s net profit is falling

One of the leading companies in the industry, International Game Technology (IGT), published its financial report showing a decrease in net profit compared to 2023. However, revenue was $4.31 billion (£3.37 billion/€3.94 billion). represents growth of 2.0%, up from $4.23 billion in 2023.

Successful year and plans for 2024

Global gaming And PlayDigital were the main reasons for the increase in sales, while Global Lottery’s results fell. However, the lottery business performed better in the fourth quarter than for the entire year, reflecting the success of other divisions.

Vince Sadusky, CEO of the companycommented: “We had a strong fourth quarter finish and were able to increase full-year 2023 profits to a record level. “An attractive range of products and solutions provided broad momentum across key performance indicators and led to improved margins in our Global Lottery, Global Gaming and PlayDigital segments.”

IGT restructured in February when Global Gaming and PlayDigital merged with another industry giant, Everi. The operations cost a total of $6.20 billion. IGT will own the majority of the shares at 54% Everi will own 46%. The merger is expected to be completed in late 2024 or early 2025 and will then be renamed Everi.

Sadusky said: “We believe the recent decision to split the business and create separate lottery and gaming companies, each with experienced management teams and simplified business models, will better position each company to serve customers and create significant value for the parties.” interested.”

Sales growth

Last year, IGT’s sales increased. Product sales turnover was incredibly high – $963 millionA 11.2% more than in 2022. However, service revenue fell 0.4%, the company said $3.35 billion.

Global lottery was the main source of income in 2023, although the decline is noticeable since it was generated $2.53 billion Loss of sales in 2023. The company cited the sale of a commercial services business in Italy as the main reason for this decline. If you continue to be part of the company, a 6% growth.

Global Gaming also achieved significant growth as its business increased by 9.1% $1.55 billion. The income of PlayDigital They also increased a 9.1% to $228 million, which broke the record for this division.

The operation costs $3.31 billion and the services $1.63 billion. However, non-operating costs increased 372 million dollarsthat is 11.7% more than in 2023. This means that the profit was before taxes were paid $629 million, which represents an increase of 6.8% compared to the previous year. The company paid 322 million dollars for taxes and 151 million dollars by non-controlling interests, so that the net profit was 156 million dollarsThat’s $156 million less than the profit in 2022 275 million dollars, therefore there is a decrease of 43.3%. Still, adjusted EBITDA was $1.78 billionwhich corresponds to an increase of 6.9% and reached a record level in this regard.

Max Chiara, financial director of the companysaid: “We have achieved all of our financial goals in 2023. Strong cash generation funded incremental investments in the business and returns to shareholders, while driving leverage to historically low levels, placing IGT in a strong financial position as we enter 2024. This gives us confidence to further expand our investments in the company to finance future growth.”

Spring: Fletcher, Robert. “Net profit falls despite sales growth at IGT in 2023”. iGaming business. March 12, 2024.

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