Appropriately for Halloween, International Game Technology (IGT) has posted $1.06bn in revenue for every quarter this year so far. Spooky.
In Q4 of 2022, the company generated $1.1bn, but there is also no change year-on-year between the third quarter of 2022 and this year.
The incredibly consistent revenue over the past year also compares to rather similar results in both operating income and adjusted EBITDA. IGT’s operating income for this quarter reached $239m, up 13.3% year-on-year, but down 4.8% from the previous quarter. Adjusted EBITDA was up 8% year-on-year to $433m, but down 2.3% from Q2 this year.
Unfortunately, incredible consistency in revenue means there has been no growth.
IGT’s Global Gaming and PlayDigital sectors were credited with driving the most operating income, with double-digit growth; Global Gaming grew by 42% while PlayDigital grew by 32% and Global Lottery fell by 2%. The operating income margin has also expanded by 250 basis points to 22%, which is a record for a Q3 period.
The largest revenue growth was also seen in the Global Gaming sector, although it was only an 8% year-on-year rise. PlayDigital rose 1% year-on-year, while the Global Lottery segment fell 4%.
In the Global Gaming segment, however, the total of new machine units sold in the US and Canada fell 78% year-on-year from 959 to 211, though replacement machine units rose 18% to 6,621. Overall, total units sold rose 3% annually.
During Q3 IGT launched a new title with Caesars Palace Online Casino, signed a multi-year agreement with the Chippewa Indians to provide PlaySports QuickBet Kiosks to Wisconsin’s St Croix Casinos, launched PeakBarTop with St Crox Casinos, installed PlaySports technology in Mississippi’s Palace Casino Resort and made progress on its ESG initiatives with a published 2022 Sustainability Report.
Though revenue and operating income have remained rather flat, IGT CEO Vince Sadusky said, “With a compelling pipeline of innovative products and solutions showcased at recent tradeshows, I am confident we can achieve our near and medium-term goals as we focus on unlocking the intrinsic value of IGT's market-leading assets."
Earlier this month, IGT also extended its contract with the California Lottery for seven more years. The company’s current share price is $26.42, down from $30.19 at the start of this month. Fourth quarter revenue expectations for this year are ~$1.1bn, also consistent with Q4 of 2022.
