In its 2021 Q1 trading update, International Game Technology PLC (IGT) said it expects main financial metrics to return to 2019 levels later this year.
To keep investors up to date, the company posted combined revenue of $1,015 million, up 25 percent from the previous year, with global lottery revenue of $749 million, up 48 percent, thanks to a 32.4 percent increase in same-store sales.
Global gaming revenue was $266 million, down from $310 million a year ago and up from $255 million in Q4 2020, as the US gaming industry continues to recover. Operating income was $260 million, compared to a loss of $218 million the year before, and net income was $92 million, compared to a net loss attributable of $248 million the year before.
In Q1, adjusted EBITDA was $450 million, up from $261 million the year before, and net debt was $7.07 billion, down from $7.32 billion at the end of 2020.
Strong Q1 delivery
Marco Sala, the CEO, stated: “We delivered some of our strongest profit results ever during the first quarter, fuelled by robust player demand and significant, structural cost savings. Our Global Lottery segment achieved record same-store sales levels on impressive increases around the world.
“The Global Gaming segment is demonstrating swift, progressive recovery, including accelerated momentum for Digital & Betting activities. We expect to return to 2019 levels for key financial metrics this year.”
Recovery in full swing
CFO Max Chiara added: “With the recovery in our business in full swing, we are delivering strong operating leverage which, when coupled with invested capital discipline, drove strong cash flows in the quarter. This enabled us to accelerate our debt retirement strategy and gives us confidence in a return to pre-pandemic leverage levels by the end of the current year.”
IGT’s lottery division helped the company achieve “…among (the) highest sales and profit levels in company history,” according to the company. It also signed a seven-year contract extension with the Jamaica Lottery, a four-year contract extension with the Kentucky Lottery, and a two-year contract extension with the Mexico Lottery during the quarter.