The multinational gambling producer of slot machines and gambling technology has published its Q4 and full year results for 2022, announcing it has reached all of its financial goals for the year while managing to strengthen its “product leadership positions” across Global Gaming, PlayDigital, and Global Lottery operations.
Strategic Work Has Paid Off
According to chief executive officer Vince Sadusky, the good results were a direct consequence of the strategic work put in by International Game Technology (IGT) in the last few years which has led to “higher growth prospects, a better profit profile, and a solid path” toward their goals in the long run.
The same efforts also helped IGT trigger record capital returns of shareholders last year, helping the company access the new year from a solid position while enjoying “good momentum across business segments.”
The company’s chief financial officer Max Chiara called it “another year of significant financial accomplishments” mostly due to their improved earnings strength.
IGT managed to generate good cash flow while its funding helped grow its investments promoting future growth. Together with the proceeds obtained from the sale of its non-core businesses, IGT managed to significantly cut debt and leverage which led to the lowest figures ever to be recorded in the company’s history.
Thanks to its improved credit profile and important liquidity, IGT will continue to enjoy powerful support and more flexibility while executing its plans spreading across several years.
Q4 2022 Financial Performance Results
For the fourth quarter, IGT reported $1.1 billion in revenue, marking a 4% rise compared to the $1 billion in revenue for Q4 of the previous year. The growth was mostly triggered by the 21% rise in Global Gaming revenue to $389 million.
The company obtained robust growth across its revenue streams from service and product sales. PlayDigital operations also brought a massive contribution to the Q4 revenue number, with a massive 239% increase to $17 million based on the solid rise in revenue and smaller jackpot expenses. This was possible in spite of the higher investments costs in research development, and talent, along with iSoftBet’s integration costs
The company also announced a 24% growth of its operating income that reached the $230 million mark. Its operating income margin sat at 21%, signaling an increase of 340 basis points compared to the previous year in profits recorded by Global Gaming and PlayDigital.
The Adjusted EBITDA for Q4 reached $419 million, marking an 8% rise as reported and a 13% increase at constant currency. The increase reflected the steady profit growth in PlayDigital and Global Gaming as well as the important contribution of IGT’s Global Lottery operations.
Full Year 2022 Results for IGT
The company reported $4.2 billion in revenue, marking a 3% YoY rise as reported or an 8% increase at constant currency. The growth was generated by the powerful rise in Global Gaming and PlayDigital operations.
IGT also announced a record operating income of $922 million and a 22% operating income margin that included an important improvement in its Global Gaming operations. With a free cash flow of $582 million and $899 million in cash from operations, IGT also announced a record $276 million to shareholders and a debt that went down by $771 million.
IGT projected a full year revenue for 2023 between $4.1-$4.3 billion with an operating margin ranging between 21% and 23%. For Q1 2023, IGT is expected to generate around $1.0 billion in revenue and an operating margin between 22% and 24%.
Earlier in the week, IGT announced it scored in the top 88% of companies in the casino and gaming industry of the 2022 S&P Global Corporate Sustainability Assessment.