IGT posts 31% year-on-year revenue increase for 2021

International Game Technology (IGT) has announced a year-on-year (YoY) revenue increase of 31% in its full-year 2021 results. Posting $4.1bn (£3.1bn) for 2021, the London-headquartered supplier was up from $3.1bn in the corresponding period for 2020 and stated that key financial metrics were “above 2019 levels”. Operating income hit a record $902m, up from an operating loss of $107m in 2020. IGT pointed to strong profit flow-through in the global lottery vertical and increases in revenue from the digital and betting verticals. The New York-listed gaming supplier also completed the sale of its Italian B2C Lottomatica division to Apollo Global Management in May 2021, for which it received $391m in 2021, part of a total €950m (£791.1m) total consideration. The company took $2.8bn from Global Lottery, which operates 56 lotteries across five continents. This was up 30% YoY from $2.2bn. Gaming generated $1.1bn in revenue, while the digital and betting vertical was up 44% from $115m to $165m. Adjusted EBITDA totalled nearly $1.7bn, an increase of 67% YoY, creating an adjusted EBITDA margin of 41%. Net debt was down $1.4bn from $7.3bn in 2020 to $5.9bn. Vince Sadusky, CEO of IGT, said: “Our 2021 financial results reflect the best revenue, profit and cashflow performance in the last four years, meeting or exceeding target levels on strong performance across the portfolio. “We made important progress on several strategic objectives and I am excited to be leading IGT in the next chapter of its evolution.” In the fourth quarter, IGT pointed towards a 19% increase in revenue compared to the comparative period in 2020 – up from $885m to $1bn. Q4 lottery revenue totalled $687m, with gaming $321m and digital and betting $42m – up $9m on 2020. On Monday, it was announced that IGT had agreed to sell its Italian proximity payments division, LIS Holding, to PostePay in a €700m deal. Shares in IGT were down nearly 14% yesterday, 1 March, closing the day at $26.37.