Casino equipment maker and digital gaming content provider IGT reported fourth-quarter revenue growth of 3.8% year-on-year to $1.09 billion on Tuesday. Financial performance for the three months to Dec. 31 “exceeded the high price” in the company’s forecast commentary, it said.
IGT’s Q4 revenue was up 2.8% from the previous quarter.
Adjusted earnings for the fourth quarter before interest, taxation, depreciation and amortization were $419 million, up 8.3% year-over-year.
Despite increased revenue, IGT posted a net loss of $64 million in shareholder attribution in the last quarter of 2022, compared to $19 million in profit in the same period last year.
The company’s board of directors announced on March 28 that it would pay a quarterly cash dividend of $0.20 per share of common stock. 파친코
The company said its quarterly performance was “above the counter” due to increased non-cash foreign exchange losses.
IGT posted a foreign exchange loss of $95 million in the fourth quarter, up from a $4 million increase in the year-ago quarter. The company also posted $110 million in income tax provisions, compared with $56 million a year ago, “mainly due to non-deductible foreign exchange losses and incremental valuation allowances on deferred tax assets.”
The group’s fourth-quarter global game revenue was $389 million, up 21.2% from a year earlier. It attributed it to “strong double-digit growth across service and product sales revenue sources.”
The gaming segment generated $68 million in operating revenue, up 88.9% year-on-year, “due to significant operating leverage partially offset by increased supply chain costs,” the company said. The group’s gaming business had a “record operating profit margin of 18%,” it added.
Revenue from the digital and betting sectors was $65 million, up 54.8% year-over-year. IGT reported revenue of $639 million in the lottery segment, down 7.0% year-over-year.
IGT said it sold 9,483 game consoles worldwide in the last three months of 2022, up 28.7% from the previous quarter. It included 728 new units and 8,755 replacements.
IGT reported full-year 2022 net income of $275 million, down from $482 million a year earlier. Revenue in the latest fiscal period rose 3.3% year-on-year to nearly $4.23 billion.
Adjusted EBITDA fell 1.3% Y/Y to just over $1.66 billion in 2022.
“Last year, we achieved all our financial goals while strengthening our product leadership position across global lottery, global gaming and play digital activities,” IGT CEO Vince Sadusky said in a prepared statement.
“Important strategic work implemented over the past few years has transformed IGT into a company with higher growth prospects, better profit profiles and a solid path to long-term goals,” he added
IGT reduced its net debt by $771 million to $5.15 billion as of December 31, 2022.
In Tuesday’s filing, IGT expects to generate revenue in the range of $4.1 billion to $4.3 billion this year, with operating margins ranging from 21% to 23%.
In January, IGT said one of its subsidiaries exercised options to fully repay $60.5 million, 5.35% interest due 2023.
In a separate press release on Tuesday, IGT said it exercised its right to repay 188 million euros ($200 million) of its 500 million and 3.50% bonds due by July 15, 2024. It also decided to repay $1.1 billion, $200 million of 6.50% bonds due by February 15, 2025.
“Each redemption is contingent on IGT receiving sufficient revenue under the Senior Revolving Credit Facility to complete such redemption,” the company said.