LONDON - International Game Technology PLC (NYSE:IGT) reported its second quarter financial results, revealing an earnings per share (EPS) of $0.36, slightly below analyst expectations of $0.38. IGT shares were down 1.8% in Tuesday's premarket session following the announcement.
The company's revenue for the quarter was $1.05 billion, just falling short of the $1.06B expected.
IGT's second quarter results showed a marginal decline in revenue compared to the same period last year, with a 1% decrease from $1.055 billion in 2023. The company's operating income also experienced a downturn, dropping from $251 million in the prior year to $230 million. Despite these challenges, IGT's adjusted EBITDA, excluding separation and divestiture costs, remained stable at $446 million.
CEO Vince Sadusky credited the company's robust first-half results, including record operating income and adjusted EBITDA net of separation and divestiture costs, to consistent investments in technology and game content. He also highlighted the sale of IGT's Gaming & Digital business for $4.05 billion as a strategic move to unlock the company's value.
CFO Max Chiara noted the generation of over $460 million in cash from operations in the first half of the year and emphasized the company's strong balance sheet, which he said provides significant flexibility for future investments.
The Global Lottery segment experienced a 2% decline in revenue YoY, primarily due to a multi-year software license sale in the previous year. However, the Gaming & Digital segment saw a 1% increase in revenue, bolstered by installed base growth and intellectual property sales, offset by lower terminal unit shipments.
IGT's net interest expense was $73 million, slightly higher than the $71 million from the previous year. The company also reported a net income of $85 million, down from $90 million in the prior-year period, with diluted EPS falling from $0.23 to $0.20.
Looking ahead, IGT has withdrawn its full-year 2024 outlook due to the planned sale of its Gaming & Digital business. The company expects to provide an updated outlook for continuing operations once the preparation of the discontinued operations reporting is complete.
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