IGT revenue down in Q3 after gaming and digital sale

Neha Soni November 13, 2024

SiGMA news

International Game Technology (IGT) has reported a decline in its year-on-year revenue for the third quarter. The company’s reported revenue accounted for $587 million for the quarter, down 2.3 percent from the previous year.

The company registered a net loss from continuing operations of $46 million, compared with last year’s $77 million profit. This is the first quarter in which gaming and digital businesses were classified as discontinued operations following confirmation of the division’s sale to Apollo Global.

Private equity giant Apollo Global announced that it would acquire IGT and Everi in a combination worth $6.3 billion on 26 July. As part of the deal, IGT elected to report gaming and digital as discontinued operations in the third quarter. This comes as the company shifts its focus to being a lottery-only business if the sale is completed by Q3 next year.

IGT CEO Vince Sadusky said he is positive about the new-look business in the long-term despite the results. He said the transformation will help IGT become a “leaner, more focused” operation.

“Our Q3 and year-to-date performance underscores the strength and resilience of our business model marked by our scale, attractive margin structure and strong cash generation,” Sadusky said.

Revenue and expenses

B2B services’ revenue comprised $566 million of the total revenue in the quarter, down 1.7 percent from last year. This is despite revenue rising 1.1 percent from the main sources within the services segment, which are instant ticket and lottery draw based.

For the quarter, operating expenses rose 8.9 percent to $477 million, which was mainly due to an additional $38 million in costs related to the restructuring of the business.

IGT also released an update on its guidance for the fourth quarter and the full year, with revenue likely to be between $640 million and $690 million. In Q4, adjusted earnings before interest, taxes, depriciation and amortisation (EBITDA) is expected to range from $280 million to $300 million. For the full year, revenue is estimated at $2.50 billion to $2.55 billion, with adjusted EBITDA set to be between $1.16 billion and $1.18 billion.