IGT Records 25% Revenue Growth In Q1 After B2C Sale

International Game Technology (IGT) reported 30% revenue growth for Q1 2021, attributable to structural cost savings, continued demand from players and the sale of the Italian B2C business to the company Gamenet Group .

The group's total revenue rose to $ 1.01 billion (2020: $ 814m). Although the pattern is still 14.3% is less than $ 1. 19 billion in 2019, the group still hopes that it will be able to return to that level on key metrics by the end of the year.

sale of italian B2C Lottomatica units from before Subsidiary of Apollo Global Management Gamenet € 950 million was a key factor underlying IGT's first quarter results.

Sale price for businesses € 950 million, € 725 million was paid at closing, while € 125 million will be paid on 31 December 2021, then the remaining € 133 million on 30 September 2022. IGT has confirmed that the proceeds will be used to reduce debt.

“During the first quarter, we achieved the highest profit results in history, which was fueled by strong demand from players and significant structural savings,” said Marco Sala , CEO of IGT. “Our global lottery segment has achieved record one-store sales with impressive growth worldwide.

“The global gaming segment is showing a rapid progressive recovery, including the accelerated development of digital technology and betting. We expect to return to 2019 levels for key financials this year. ”

With a 144% increase in lottery revenues to $ 337 million (2020: $ 144 million), IGT's total end-of-quarter revenue for March 31, 2021 ended at $ 260 million - a significant improvement from the loss of $ 218 million recorded a year earlier against COVID - 25 circumstances.

The group's revenues from the global lottery were $ 749 million. 72% y / y an increase from $ 505 million, which was attributed to 32. Sales growth in the same store by 4%. Total net lottery income increased by 84% to $ 447 million (2020: $ 243 million).

However, the group's gaming operations increased losses of $ 25 million (2020: - £ 6 million), representing an annualized decrease of 14% to $ 266 million (2020: 310 million) - indicating trends affecting competitors on IGT and its market, especially the ongoing closure of land-based casinos.

While the recovery in the US gaming markets contributed to an increase of 4.3% compared to the fourth quarter of 2020 to $ 255 million, the game completed 47% net revenue to $ 25 million (2020: $ 32 million).

At the same time, net income was $ 92 million versus a net loss of 248 million in 2020, while adjusted EBITDA increased to 72% in the amount of 450 million (2020: 261 million).

“As our business recovery is in full swing, we are providing strong operating leverage, which, combined with - discipline in invested capital has resulted in strong cash flows this quarter,” said Max Chiara , Chief Financial Officer of IGT.

“This allowed us to accelerate our debt repayment strategy and gave us confidence to return to pre-pandemic leverage levels. before the end of this year. "

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