IGT has reaffirmed its full-year guidance estimates, as the group reflects on a “best revenue, profit, and cash flow performance in the last four years”.
This, says IGT, ensured that the group met or exceeded “ target levels on strong performance across the portfolio,” which saw a fourth quarter revenue increase of 19 per cent to $1.05bn (2020: $885m) help its full-year performance reach $4.08bn, a 31 per cent uptick from $3.11bn.
On a segmented basis across the quarter, global lottery increased eight per cent year-on-year to $687m (2020: $630m), with its gaming division rising 45 per cent to $321m (2020: $222m), primarily driven by higher replacement unit sales and average selling prices.
Furthermore, the company’s digital and betting section reached $42m from $33m, which IGT says was propelled by new jurisdictions and customers.
Operating income of $186m, up 93 per cent from $96m, which it aligns to revenue growth with strong profit flow-through and a sustained focus on cost discipline, with adjusted EBITDA of $387m, an uptick of 31 per cent from the $295m recorded in the prior year.
“We made important progress on several strategic objectives, and I am excited to be leading IGT in the next chapter of its evolution,” noted Vince Sadusky, CEO of IGT.
“We have set aggressive but achievable multi-year goals and we have a focused strategy to maximise value for all stakeholders.”
For the full-year, revenue increase was reported as being “driven by impressive growth across segments,” with lottery up 20 per cent to $2.81bn (2020: $2.16bn), driven by 20 per cent per cent same-store sales growth.
Gaming increased 33 per cent to $1.11bn (2020: $837m) due to, IGT noted, continued recovery driving key performance indicators higher, with digital and betting up 44 per cent to $165m (2020: $115m).
Operating income of $902m across FY has swung from a loss of $107m one year earlier, which the group aligns to double-digital revenue growth, strong profit flow-through in global lottery, “solid operating leverage” across digital and betting, and improved operating leverage from revenue growth coupled with benefit of structural cost savings in gaming.
Net income closed at $670m compared to a loss of $839m in 2020, with adjusted EBITDA closing at $1.68bn, up 67 per cent from 2020’s $1bn.
“Improving leverage to 3.5x a year ahead of schedule enables us to pursue a balanced capital allocation framework that supports investing for growth, continued debt reduction, and the reinstatement of capital returns through quarterly dividends and share repurchases,” said Max Chiara, CFO of IGT.
“As we enter 2022, the company is in a very good place with a solid financial condition and a strong foundation for further growth.”
Furthermore, IGT has also disclosed a Q1 2021 outlook, with revenue expected to reach between $1bn and $1.1bn with an operating margin of 20 per cent to 22 per cent.
The company has also reaffirmed full-year guidance of $4.1bn-$4.3bn in revenue, cash from operations of $850m-$1bn, and capital expenditures of $400m-$450m.