IGT's Global Gaming Revenue Surges in Q3, Defying Global Lottery Decline

In Q3, IGT reported a remarkable surge in its Global Gaming revenue, marking a 7.9% increase from the previous year. This boost can be attributed to the expansion of the installed base and increased system and software sales. Notably, Global Gaming service revenue witnessed a 7.1% rise, reaching $197 million, while product sales soared by 8.7% to $212 million. This robust performance in the gaming sector played a crucial role in elevating IGT's overall revenue.

Conversely, the Global Lottery segment faced a decline, with revenue dropping by 4.0% to $601 million in the same quarter. Both service and product sales revenue within this segment experienced decreases, with service revenue down by 2.0% to $576 million and product sales revenue sliding by a significant 35.9% to $25 million.

IGT's PlayDigital revenue remained steady at $55 million in Q3. Although there was growth in the online casino sector, it was offset by the impact of exiting certain legacy iSoftBet jurisdictions. The group also noted unusually high sports betting hold levels in the prior year, contributing to the stable revenue in this segment.

While operating costs for Q3 decreased by 2.7% to $826 million, non-operating expenses amounted to $50 million, as opposed to the previous year's $103 million in profit in this area. This led to a 40.0% decrease in pre-tax profit, which reached $189 million. The net profit attributable to IGT was $94 million, down by 65.5% year-on-year. However, adjusted EBITDA showed positive signs, increasing by 7.7% to $433 million.

For the first nine months of the year, IGT posted a total revenue of $3.12 billion, representing a 1.5% increase compared to the same period in the previous year. Service revenue decreased slightly by 0.2% to $2.51 billion, while product sales revenue surged by 8.7% to $672 million.

Looking ahead, IGT has revised its full-year revenue projection to $4.30 billion, positioning it at the upper end of its previous guidance range. The company also forecasts a 23% operating profit for the 12-month period, demonstrating confidence in its financial outlook.