IGT Financial Performance Highlights from Q1 2025 Results
IGT Reports Financial Results for First Quarter of 2025
International Game Technology PLC (NYSE: IGT) has disclosed its financial performance for the first quarter of 2025. The results indicate a steady demand among players for instant tickets, draw games, and iLottery, although declines in U.S. multi-state jackpot activity have been noted as a significant factor influencing the year-over-year comparisons.
Key Financial Figures
During Q1 2025, the company reported an income from continuing operations of $8 million, reflecting a non-cash impact of foreign exchange translation. The profit margin for this quarter stood at 1.4%
The Adjusted EBITDA for the quarter reached $250 million, indicating a robust adjusted EBITDA margin of 42.8%, which underscores the profitable structure of the lottery business. The company's overall financial condition remains strong, with liquid assets positioned to strategically manage contract renewals that are crucial for future operations.
Strategic Insights from Leadership
Vince Sadusky, CEO of IGT, remarked that the ongoing global appeal for instant ticket and draw games is being driven by continuous game innovation and effective portfolio optimization. He expressed optimism regarding the initiatives being implemented to foster sustainable long-term growth and maximize shareholder value despite existing uncertainties.
Max Chiara, CFO of IGT, echoed similar sentiments regarding the quarter’s achievements aligning with expectations in constant currency, alongside strong cash conversion metrics. He also highlighted the potential to remain at the lower end of expected revenue and adjusted EBITDA guidance due to the prevailing macroeconomic factors.
Overview of Financial Performance
The overall revenue for the first quarter of 2025 was registered at $583 million, compared to $661 million during the same period last year, marking a decrease primarily attributable to diminished jackpot activity and associated licensing impacts.
- The decline in revenue can largely be ascribed to previously higher multi-state jackpot activities and licensing incentives during the preceding year.
- Revenue derived from instant tickets and drawn games was affected by calendar shifts, resulting in a normalized growth of 1.4% in global same-store sales.
Income Report
Income from continuing operations plummeted to $8 million compared to the prior year's $116 million. This drop was driven by lower overall operating income influenced by high EBITDA adjustments, involving foreign exchange impacts that altered the previous year’s balance.
Adjusted EBITDA for the current quarter fell to $250 million from $327 million the previous year, owing to a decline in jackpot sales and multi-state incentive structures, alongside incremental investments aimed at fostering long-term growth.
Cash and Debt Overview
The company's liquidity as of March 31, 2025, stands at $2.2 billion, including unrestricted cash of $600 million and additional borrowing capacity. Additionally, the net debt stands at approximately $5.0 billion, reflecting a minor decrease from $5.2 billion at the close of the previous financial year.
Upcoming strategic actions entail a significant reduction in committed debt projected to occur from ongoing operational adjustments and license fee installments tied to future growth initiatives.
Dividend Declaration
The Board of Directors of IGT declared a quarterly cash dividend of $0.20 per common share, with the record date set for May 29, 2025, and a payment date anticipated on June 12, 2025.
Outlook for 2025
For the remaining fiscal year, IGT expects revenue to be approximately $2.55 billion with an adjusted EBITDA forecasted around $1.1 billion. Both these figures are consistent with the low end of the previously established ranges.
Frequently Asked Questions
What were IGT's total revenues in Q1 2025?
IGT's total revenues for Q1 2025 were reported at $583 million.
How much income did IGT derive from continuing operations in Q1 2025?
The income from continuing operations for IGT in Q1 2025 was $8 million, down from $116 million in the prior year.
What was the adjusted EBITDA margin for IGT in Q1 2025?
IGT reported an adjusted EBITDA margin of 42.8% for Q1 2025.
When is the dividend payment from IGT scheduled?
The dividend payment from IGT is scheduled for June 12, 2025.
What is IGT's outlook for the full year of 2025?
IGT forecasts approximately $2.55 billion in revenue and $1.1 billion in adjusted EBITDA for the full year of 2025.
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