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International Game Technology PLC Reports Financial Performance for Q4 and Full Year 2024

International Game Technology PLC (IGT), a leader in gaming technology, has unveiled its financial results for the fourth quarter and full year ended December 31, 2024. The company’s performance showcased significant resilience amidst industry challenges, with total revenue reaching $651 million in Q4, slightly below the previous year’s $681 million, primarily influenced by a remarkable product sales record in 2023. However, this figure marks the second-highest quarter for product sales in the company's history, underscoring the robust demand for its offerings.

During the fourth quarter, IGT recorded a net income from continuing operations of $116 million, marking a substantial 60% rise compared to the $73 million reported in the same quarter last year. The income margin also saw an uplift, reaching 17.9% from 10.7% in the prior year. This impressive growth can largely be attributed to enhanced instant ticket and draw game sales, particularly across the U.S. and European markets, including Italy where sales grew by 7%. The company generated an adjusted EBITDA of $290 million, which reflects a margin of 44.5%.

Full Year Highlights

For the entire year, IGT reported revenues of $2.5 billion, in line with its expectations and driven primarily by the persistent growth of instant ticket and draw game sales. Continuing operations yielded an income of $271 million, translating to a margin of 10.8%. In terms of cash generation, the company reported a consolidated cash flow from operations of $1.03 billion, including $689 million from continuing operations and a strong free cash flow of $659 million. Interestingly, over 80% of this cash flow was generated from core operations, demonstrating the resilience and growth capability of its lottery business model.

CEO Vince Sadusky emphasized that the year 2024 was pivotal for IGT, marking the conclusion of their strategic review and the planned sale of its Gaming Digital segment for $4.05 billion to affiliates of Apollo Global Management, expected to close by the end of Q3 2025. This move is anticipated to allow IGT to invest further strategically and enhance shareholder returns by focusing on its industry-leading lottery solutions and game content.

CFO Max Chiara stated that the strong cash flow generated is vital for investing in future growth, debt reduction, and returning capital to shareholders, hinting at a solid foundation leading into 2025. IGT's core business is poised to grow with expectations of low-to-mid single-digit growth in 2025, alongside estimates for adjusted EBITDA of $1.10 to $1.15 billion.

Strategic Developments

The company also made notable strides in expanding its operational reach in the lottery segment during 2024. IGT secured a significant seven-year facilities management contract with the Colorado Lottery, alongside contract extensions across various jurisdictions, including a notable extension with the Tennessee Education Lottery and new service agreements in Europe.

As of year-end 2024, IGT's net debt stood at approximately $4.8 billion, down from $5.2 billion at the end of 2023, further showcasing their effective financial management strategies. The board has declared a quarterly cash dividend of $0.20 per common share, adding value to its shareholders as the company progresses in its strategic objectives.

Overall, IGT's 2024 fiscal year offends underpinned by a robust market performance, transformative changes, and an optimistic outlook for sustained growth in its future endeavors, especially within its core lottery business.