IGT Records Best Performance in Revenue, Earnings and Cash Flow Over Past Four Years, with Growth in All Segments in 2021
International Gaming Technology (IGT) announced on Tuesday its financial results for the fourth quarter of 2021 and the year ended December 31, 2021. The report shows that the company recorded $4.1 billion across all segments in 2021 with double-digit growth across all segments, an increase of 31%.
The company reported a detailed breakdown of results of each of its segments for 2021with his Global lottery operations hit $2.8 billion in revenueagainst $2.2 billion. Global gaming revenue grew 33% to $1.1 billionwhile Digital & Betting increased earnings to $165 millionup 44% year-over-year.
Adjusted EBITDA totaled nearly $1.7 billion, up 67% over the prior year; The adjusted EBITDA margin of 41% was among the highest in the company’s history.
For the fourth quarter 2021IGT reported a consolidated revenue of $1 billion, up 19% from $885 million in 2020.
Global lottery revenue totaled $687 million in the last three months of the year, compared to $630 million in 2020. Worldwide gaming revenue was $321 millionup 45% over the previous year. Digital and betting revenue hit $42 millionversus $33 million year-over-year, powered by new jurisdictions and new clients.
Adjusted EBITDA for the fourth quarter was $387 millionup 31% from $295 million in 2020.
In an official press release, Vince Sadusky, CEO of IGT, spoke about these results and said, “Our 2021 financial results reflect the best performance in revenue, earnings and cash flow over the past four years, meeting or exceeding target levels thanks to strong performances in the entire portfolio. We have made significant progress on several strategic objectives, and I am delighted to lead IGT through the next chapter of its evolution. We have set aggressive but achievable multi-year goals and we have a focused strategy to maximize value for all stakeholders.”
Max Chiara, CFO of IGTadded, “Improving leverage to 3.5x per year ahead of schedule enables us to pursue a balanced capital allocation framework that supports investment for growth, continued reduction in debt and the restoration of capital returns through quarterly dividends and share buybacks”.
In an earnings call held March 1, Executive President Marco Sala said, “During the quarter, we generated more than $1 billion in revenue, up 19% year-over-year driven by strong global lottery same-store sales growth, to increased shipments of replacement units and ASPs in gaming and 25% growth in digital and betting, driven by continued market expansion and customer demand for our products and technology “. And said: “As we enter 2022, the business is in a very strong position, with a strong financial position and a solid foundation to build on.”
He also referred to some recent leadership changesincluding Vince Sadusky’s new role as CEO and his as Executive Chairman, as a strategy to “best position the company to achieve its long-term growth initiatives and create significant shareholder value”.
Speaking of outlook for 2022Sadusky said: “We put aggressive but achievable financial goals which include impressive cash flow generation over the next few years, and we have a disciplined strategy to allocate this cash flow to maximize value for all stakeholders. We have a powerful and diversified portfolio that not only offers attractive growth prospects, but also significant resilience”.
“This year, we plan to significantly increase the number of new iGaming titlesand we will also start distributing our first third-party games. Our PlaySports solution powers over 60 locations in over 20 states and was recently recognized as Platform Provider of the Year at the SBC Awards North America. The turnkey sports betting solution is gaining momentum, including new partnerships with Meruelo Gaming and Cliff Castle Casino. We also have a solid pipeline of new turnkey customers for 2022”he concluded.
IGT announced at the end of February the signature of a definitive agreement for the sale of its Italian convenience payment business to PostePay – Patrimonio Destinato for 700 million euros ($784 million). Under the terms of the agreement, IGT will sell LIS Holding and indirectly LISPAY. These two wholly owned subsidiaries operate IGT’s proximity payment business, offering services through a wholly owned advanced payment technology platform and a network of 54,000 outlets..
On the sale, Sadusky commented: “This transaction provides us with the opportunity to monetize IGT’s leadership in the Italian proximity payments market at an attractive value as we continue to execute our long-term strategy.”