International Game Technology (IGT) reported a 3.3% increase in its second-quarter revenue compared to the same period in 2022. The reported revenue for Q2 2023 was $1.05bn, almost on par with Q1’s revenue of $1.06bn. This impressive performance has prompted IGT to revise its full-year revenue outlook for 2023.
IGT’s Revenue Surge in Q2 2023
A major contributor to IGT’s robust revenue growth was its Global Lottery segment, which generated $624m. Despite this figure being slightly lower than the previous year’s Q2 results, the Global Gaming segment saw a substantial growth of 13.0%, bringing in $373.0m. PlayDigital also contributed to the overall revenue with $59m.
IGT’s CEO, Vince Sadusky, attributed the revenue increase to strategic initiatives implemented throughout the first half of 2023. He noted that all business segments reflected solid revenue and profit momentum, and the company was able to achieve the high end of its outlook.
Key strategic initiatives contributing to this success included partnerships with the Connecticut Lottery and the confirmation of a 20-year contract to operate instant and passive lottery with games such as Scratch Cards and Craps in Minas Gerais, Brazil. In addition, IGT extended its long-term partnership with the Belgian National Lottery and its betting partnership with the Rhode Island Lottery.
Full-Year Revenue Outlook for 2023 and Strategic Alternatives
Max Chiara, CFO of IGT, announced that based on the company’s first-half results, they are confidently raising their full-year revenue and operating margin outlook for 2023. The company believes it has a solid foundation to build upon as it continues to invest in its growth objectives and further reduce debt.
In June, IGT also announced that it was considering “strategic alternatives” for its Global Gaming and PlayDigital segments, which could potentially include selling, merging, or spinning-off these segments. However, there is no definitive timeline for this decision.
Bottom Line and Projections for FY23
The net income for Q2 2023 was $90m, almost triple the $34m net income in Q2 2022. The company now expects its full-year revenue to be between $4.20bn and $4.30bn, up from the earlier projection of $4.10bn to $4.20bn.
For the first half of 2023, the total revenue was $2.11bn, a rise of 2.1%. The total operating expenses for this period were $1.61bn, leading to an operating income of $506m. The total net income for H1 was $157m, up by 4.0%.