Why Is International Game Technology Stock Falling Today?

Author: Anusuya Lahiri | March 12, 2024 10:23am

International Game Technology PLC (NYSE:IGT) reported fourth-quarter fiscal 2023 revenue growth of 3% year-on-year to $1.13 billion (2% Y/Y constant currencies), beating the consensus of $1.11 billion. 

The gaming technology firm registered an adjusted EPS of $0.56, beating the consensus of $0.41.

Revenue from Global Lottery climbed by 7% Y/Y to $681 million, Global Gaming was flat at $390 million, and PlayDigital was down 10% to $59 million.

Adjusted EBITDA rose 9% Y/Y to $454 million on higher operating income and depreciation and amortization, with a margin improvement of 190 basis points Y/Y to 40.2%. 

Operating income grew 11% Y/Y to $256 million, led by double-digit growth in Global Lottery and Global Gaming, with margin expansion of 160 basis points to 22.7% for the quarter.

As of December 31, 2023, total liquidity is $1.8 billion, with $572 million in unrestricted cash and $1.2 billion in additional borrowing capacity from undrawn credit facilities.

Dividend: The board declared a quarterly cash dividend of $0.20 per share, payable on April 9, 2024, to record as of March 26, 2024.

Vince Sadusky, CEO of IGT, said, “We believe the recent determination to split the business and create separate lottery and gaming pure play companies, each with experienced management teams and simplified business models, better positions each company to service customers and create significant value for stakeholders.”

Outlook: IGT expects fiscal 2024 revenue of $4.30 billion – $4.40 billion versus a consensus of $4.403 billion with an operating margin of 20% – 21%.

IGT expects first-quarter revenue of ~$1.0 billion against the consensus of $1.077 billion.

Price Action: IGT shares are trading lower by 4.59% at $24.00 on the last check Tuesday.

Posted In: IGT