IGT’s resilient performance in FY 2023

Lea Hogg March 12, 2024

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IGT’s resilient performance in FY 2023

International Game Technology (IGT), a leading supplier in the gaming industry, has reported encouraging financial results for the fourth quarter and full year of 2023. Despite the challenges, the company managed to achieve single-digit revenue growth, demonstrating its resilience and strategic prowess.

In Q4 2023, IGT’s total revenue saw a 3% year-on-year increase, reaching $1.1 billion. The global lottery segment was the primary driver of this growth, with a 7% increase to $681 million. Meanwhile, the global gaming segment experienced a slight increase, and PlayDigital’s revenue saw a decrease of 10 percent.

The company’s operating income also saw growth across all three main verticals, with global gaming witnessing the most significant increase at 17 percent. Consequently, total operating income rose by 11 percent to $256 million. Total adjusted EBITDA also saw a positive change, increasing from $419 million in Q4 2022 to $454 million in Q4 2023, with global gaming seeing the highest increase of 23 percent.

Strategic moves and future outlook

For the full year of 2023, IGT’s revenue increased by 2 percent year-on-year to $4.3 billion. Both global gaming and PlayDigital improved their revenue by 9 percent each, while global lottery decreased by 2 percent. Operating income saw improvements across all three main verticals, with PlayDigital witnessing the largest rise of 32 percent. The total adjusted EBITDA for 2023 was set at a record $1.8 billion, up 7 percent from 2022, mainly due to higher operating income and amortisation.

IGT CEO Vince Sadusky expressed satisfaction with the company’s performance, stating that a compelling array of products and solutions fuelled broad-based momentum in key performance indicators. He also highlighted the company’s recent decision to split the business into separate lottery and gaming companies, which he believes will better position each company to service customers and create significant value for stakeholders.

IGT CFO Max Chiara also expressed confidence in the company’s strong financial position as it enters 2024, attributing this to robust cash generation that funded incremental investments in the business and shareholder returns.

Despite the challenges, IGT’s strategic moves and strong leadership have positioned it for future growth. As the company navigates through these obstacles, it remains committed to its long-term expansion strategy, ready to shift the momentum and seize new opportunities.