IGT Clocks 21% Revenue Growth In Q3, Declares Dividend

International Game Technology PLC IGT reported third-quarter FY21 revenue growth of 21% year-on-year to $984 million, above the consensus of $981.1 million.
Global Lottery revenue grew 14% Y/Y to $652 million as sustained momentum drives 9% global same-store sales growth.
Global Gaming revenue rose 34% Y/Y to $289 million as market recovery progresses.
Digital & Betting revenue increased 37% Y/Y to $43 million, with double-digit growth across activities.
The operating margin expanded by 1,100 bps to 22%, while operating income rose 144% Y/Y to $212 million.
The adjusted EBITDA margin expanded 600 bps to 41%.
EPS of $0.31 missed the consensus of $0.34.
IGT held $435 million in cash and equivalents and generated $113 million in operating cash flow.
Dividend: The board declared a quarterly cash dividend of $0.20 per share, payable on December 7, 2021, to shareholders of record on November 23, 2021.
"Broad-based momentum across our Lottery, Gaming, and Digital & Betting activities drove significant improvement in key financial and performance metrics in the third quarter," CEO Marco Sala said.
Outlook: IGT sees FY21 revenue of $4.1 billion versus the consensus of $4.04 billion.
The company updated its operating income outlook to ~$900 million from ~$800 million.
Price Action: IGT shares traded higher by 3.23% at $31.31 on the last check Tuesday.

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