LONDON - International Game Technology PLC (NYSE:IGT) reported its fourth quarter earnings, surpassing analyst expectations with an EPS of $0.56, $0.04 higher than the estimated $0.52.
The company's revenue reached $1.13 billion, exceeding the consensus estimate of $1.1 billion. Despite this beat, shares of IGT fell 1.79% in premarket trading due to guidance for the upcoming quarters that did not meet analyst projections.
The company's revenue showed a 3% increase from the same quarter last year, driven by a 7% growth in its Global Lottery segment. Operating income rose by 11% to $256 million, with improvements across Global Lottery, Global Gaming, and PlayDigital segments. The operating income margin expanded by 160 basis points to 22.7%.
For the full year of 2023, IGT reported a revenue of $4.3 billion, marking a 2% rise year-over-year (YoY). The increase was attributed to Global Lottery same-store sales growth and a 9% increase in both Global Gaming and PlayDigital. Operating income for the year rose by 9% to a record $1.0 billion, with the operating income margin improving by 140 basis points to 23.2%.
Looking forward, IGT provided guidance for the first quarter of 2024 with an expected revenue of approximately $1 billion, which falls below the analyst consensus of $1.07 billion. For the full year 2024, the company anticipates revenue to be between $4.3 billion and $4.4 billion, significantly lower than the consensus estimate of $6.93 billion.
IGT's CEO Vince Sadusky expressed confidence in the company's financial position, stating, "We delivered a strong finish to the year in the fourth quarter, propelling full year 2023 profits to record levels." He highlighted the success of their product offerings and the company's determination to split the business into separate lottery and gaming pure-play companies, which he believes will better position each to create significant value for stakeholders.
The company's CFO, Max Chiara, also commented on the financial achievements, noting the robust cash generation that allowed for incremental investments and shareholder returns, as well as driving leverage to historically low levels.
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