In the event of "bad times," IGT plans to reduce debt while increasing Q3 revenue to $1.06 billion.
IIGT Question 2
Although it was down 4.0% year-on-year, IGT's Global Lottery segment still managed to rake in $626 million in revenue.
With a decline of 5.1%, the majority of this amount, $588m, came from services. Meanwhile, sales of lottery products reached $39 million in revenue.
Nevertheless, the Global Gaming division's persistent performance more than made up for this dip, with revenue increasing by 30.9% to $379m.
Services contributed $184 million, up 7.2%, while goods sales brought in $195 million, up 66.5%.
With the completion of the acquisition of game aggregator iSoftBet, IGT saw a 27.2% increase in digital and betting revenue to $54 million during the quarter.
In total, IGT earned $826 million from services and $234 million from product sales.
On the other hand, operational expenses climbed by 10.0% to $849m, which is a little faster than sales. Of this, $415 million went towards service expenditures and $149 million towards product sales costs.
Consequently, IGT's operational income was $211 million, a decrease of less than 0.5 percent from the previous year.
An additional $103 million came from the supplier's non-operating items, the majority of which was attributable to a $120 million gain from the class action lawsuit it settled earlier this year. This resulted in a pre-tax profit of $315 million, which is over twice the amount from Q3 of 2021.
After accounting for taxes, IGT's profit was $294 million, about three times what it had been the previous year.
Decreased using
Although IGT has successfully reduced its debt, in part through the sale of Lottomatica, and is now within its target leverage rate for 2025, CFO Max Chiara announced that the company intends to further reduce its debt. He was asked about the possibility of returning cash to shareholders after reaching the 2025 target. He responded that although it has always been a goal, IGT is also working to reduce its leverage ratio with any free cash.
We still have a ways to go before we can relax knowing that we are well-prepared for any future storms by being at the low end.
"We anticipate maintaining program execution moving forward, but the primary objective is to further reduce leverage to the lower half of the targets."
IGT anticipates
Q4 and full-year predictions were also made public by IGT. It predicted quarterly revenue of $1 billion and full-year revenue of between $4 billion and $4.2 billion.
For the entire year, IGT anticipates a cash flow from operations of $850 million to $950 million.
