IGT's Positive Q1 Earnings & Optimistic 2024 Forecast

IGT, a gaming company, reported strong earnings for the first quarter and predicts continued growth through 2024.

International Game Technology (IGT) reported its earnings for the first quarter, showing that it earned $1.07 billion, a small increase from last year. The company did well mainly because its lottery business grew by 6%. However, its gaming and digital section didn't do as well, with a 7% drop in earnings. The company expects to do well overall in 2024.

Quick Facts from IGT's Q1 Report

• Q1 revenue stands at $1.07 billion, a 1% increase year-over-year.
• Global Lottery revenue rose to $661 million, a 6% increase.
• Gaming & Digital revenue fell to $406 million, a 7% decrease.
• Operating income remained steady at $256 million.
• Operating margin exceeded expectations by 400 basis points at 24%.
• Adjusted EBITDA hit $443 million, marginally lower by 1% from last year.
• The cash on hand was $377 million, down by 44%.
• Net debt stable at $5.1 billion.

IGT expects to earn roughly $1.05 billion in the upcoming three months and anticipates their total income for 2024 will be around $4.4 billion.

Company Progress and Accomplishments

IGT is splitting its Gaming & Digital business to join with Everi Digital. They've begun providing online gaming in Rhode Island, are set to provide gaming machines in Quebec, and have renewed their agreement with the UK National Lottery.

They've gained attention for their work in sustainability, earning the highest score from EcoVadis. They've also received several awards, such as Lottery Product of the Year and Best Diversity and Inclusion Employer.

Management's Perspective on First Quarter Results

Vince Sadusky, the CEO of IGT, is pleased with how the company is doing. He mentioned that dividing the company's Gaming & Digital division is happening without problems.

Max Chiara, the chief financial officer, says the company is doing well money-wise. He points out that IGT doesn't have much debt, has plenty of cash on hand, and doesn't need to pay back large amounts of money any time soon.

Looking Ahead

What's coming for IGT? They're doing well with money and want to grow. They're splitting up their company to try and make more money. They had a good beginning of the year and they think 2024 will be good for them too.