IGT Posts Sluggish Q3 Results On Weak Lottery Business, Tightens FY23 Outlook

International Game Technology PLC IGT reported Q3 FY23 revenue that remained flat Y/Y at $1.065 billion (-1% Y/Y constant currencies), beating the consensus of $1.029 billion. 

Revenue from Global Lottery declined by 4% Y/Y to $601 million, Global Gaming rose 8% Y/Y to $409 million, and PlayDigital at $55 million.

Also Read: IGT Pockets 10-Year Contract Extension For Lottery System In Malaysia

Adjusted EBITDA rose 8% Y/Y to $433 million on higher operating income and depreciation and amortization, with a margin improvement of 270 basis points Y/Y to 40.7%. 

Operating income grew 13% Y/Y to $239 million, led by double-digit growth in Global Gaming and PlayDigital, with margin expansion of 250 basis points to 22.4% in Q3.

Read: International Game Technology's Subsidiary Forays Into The Brazilian Lottery Market

The gaming technology firm registered an adjusted EPS of $0.52, beating the consensus of $0.39.

As of September 30, 2023, total liquidity of $1.9 billion, with $0.6 billion in unrestricted cash and $1.3 billion in additional borrowing capacity from undrawn credit facilities.

Dividend: The board declared a quarterly cash dividend of $0.20 per share, payable on December 13, 2023, to record as of November 29, 2023.

Outlook: IGT expects Q4 revenue of $1.1 billion (consensus $1.09 billion), with Global Lottery revenue up low-to-mid single-digits Y/Y and Global Gaming and PlayDigital revenue in line Y/Y.

The company tightened the FY23 revenue outlook to $4.3 billion ($4.2 billion-$4.3 billion prior) vs. $4.25 billion estimate.

Also Read: Anticipating IGT's Potential Separation: Analyst Foresees Higher Valuation For Lottery Segment

Price Action: IGT shares are trading lower by 4.58% at $25.21 on the last check Tuesday.