IGT Revenue Hits $1.1 Billion Despite Q4 Slowdown in 2024

IGT’s fourth quarter of 2024 recorded contrasting results, with the company seeing a 4% revenue decline yet achieved its second-highest product sales quarter ever. The instant ticket and draw wager-based segment proved particularly strong with a 2% yearly growth to $511 million. The company’s income from continuing operations jumped by 60% year-over-year, reaching $116 million in Q4. Revenue for the full fiscal year 2024 dipped slightly by 1% to $2.51 billion, but IGT managed to keep its market position through robust instant ticket and draw game sales in the US, Canada, and Italy.

IGT Reports Mixed Q4 Performance Amid Market Shifts

IGT’s fourth quarter financial results showed major changes across different segments. The operating income dropped 9% to $179 million with margins shrinking to 27.4% from 29%. The adjusted EBITDA also fell 8% to $290 million.

The segment performance painted an interesting picture. Instant ticket and draw wager-based revenue proved resilient at $511 million. Italy’s market stood out with a 7% increase in same-store sales. The US multi-state jackpot wager-based revenue struggled and fell 21% year-over-year to $26 million.

Product sales revenue dropped 32% yearly to $60 million. This performance ranked as the second-highest quarter in the company’s history for product sales revenue. The decline came from comparing it with last year’s record-breaking product sales.

The quarter’s results highlighted several achievements. Lottery sales momentum stayed strong with a 28% surge in both fourth quarter and throughout 2024. Instant ticket and draw game sales grew 4% in all regions. Italy’s success stood out thanks to successful game launches that included the Tambola holiday bundle and new e-instant games.

The company’s profit generation remained solid. Income from continuing operations reached $116 million, a big jump from $73 million last year. The continuing operations margin grew to 17.9% from 10.7% in the previous year.

IGT managed to keep stable performance in fiscal year 2024 with revenue of $2.50 billion. The cash flow generation proved strong with over $1 billion in consolidated cash from operations and about $660 million in free cash. Lottery operations contributed more than 80% of this. Instant ticket and draw game revenue increased by $35 million, though US multistate jackpot revenue declined by $29 million.

Company Announces Strategic Sale to Apollo Management

Apollo Global Management has made a major strategic move by signing agreements to acquire IGT’s Gaming & Digital business and Everi Holdings. The all-cash deal values these businesses at $6.30 billion [17, 22].

IGT will get $4.05 billion in gross cash proceeds from selling its Gaming division. A special committee of IGT’s Board of Directors unanimously approved this transaction. This deal replaces the earlier merger plans between IGT and Everi.

Once the sale completes, IGT will change into a focused lottery-based company. The company will adopt a new name and stock ticker symbol to reflect its position as a pure-play lottery business. Much of the proceeds will go toward reducing debt and providing returns to shareholders.

IGT’s shareholders will keep full ownership of the Global Lottery business. This separation will create a focused business model. The new capital structure will help drive long-term value for shareholders.

Apollo brings valuable expertise to this deal. Their partner Daniel Cohen stated that the business would be “better positioned under private ownership to capture opportunities ahead to grow and create value”. Apollo’s proven success in the gaming sector played a crucial role in finalizing this deal.

The deal needs standard closing conditions and regulatory approvals. IGT’s shareholders don’t need to approve this transaction. Las Vegas will serve as the headquarters for this new combined enterprise. The deal should close by the end of third quarter 2025.

IGT has launched OPtiMa 3.0, a multi-year program to improve company operations. This program aims to save $40 million annually by 2026’s end. About half of these savings should materialize by late 2025.