International Game Technology Q2 Recap: Strong Revenue, Updated Guidance, Growth In Sports Betting

Global lottery and gaming company International Game Technology IGT reported second-quarter financial results Tuesday. Here's a look at the highlights and what’s next for the company.

What Happened: Second-quarter revenue for the company rose 74% year-over-year to $1 billion. The global lottery segment showed 35% same-store sales growth in the second quarter.

Adjusted EBITDA of $442 million in the second quarter was noted as “among the highest in company history.”

The lottery segment saw the second-highest revenue and profit levels in segment history for the company, which attributed the growth to strong player demand in the quarter. 

“Outstanding lottery performance, the progressive recovery in land-based gaming and strong increase in digital and betting activities drove substantial revenue and profit growth,” IGT CEO Marco Sala said.

The company’s gaming business reported a 126% year-over-year increase in revenue and a return to profitability for the segment. Digital gaming and sports betting revenue was up 41% in the quarter.

International Game Technology is powering around 50 sports betting platforms as of the second quarter.

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What’s Next: International Game Technology is raising its fiscal 2021 outlook after the second-quarter results.

“On the strength of the first half performance, we are raising our outlook for the year and now expect to exceed 2019 levels for key financial metrics this year,” Sala said.

The company could be a reopening play given its exposure to physical casinos and how it's playing the long game with digitalization of lottery and sports betting.

The company said it has over 40 leads in the pipeline for sports betting partnerships, which could mean some deals are announced in the second half of the fiscal year.

IGT Price Action: IGT shares were trading 0.68% lower to $18.85 at last check Tuesday.