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LONDON, Aug. 3, 2021 /PRNewswire/ -- International Game Technology PLC ("IGT") (NYSE:IGT) today reported financial results for the second quarter ended June 30, 2021. Today, at 8:00 a.m. EDT, management will host a conference call and webcast to present the results; access details are provided below.
"Impressive second quarter results highlight the vitality of our portfolio," said Marco Sala, CEO of IGT. "Outstanding Lottery performance, the progressive recovery in land-based Gaming, and strong increase in Digital & Betting activities drove substantial revenue and profit growth, delivering Adjusted EBITDA that is among the highest recorded in a quarterly period. On the strength of the first half performance, we are raising our outlook for the year and now expect to exceed 2019 levels for key financial metrics this year."
"Record free cash flow from continuing operations and proceeds from recent asset sales fueled significant debt reduction in the first half," said Max Chiara, CFO of IGT. "Our leverage profile improved substantially, reaching pre-pandemic levels well ahead of expectations, and improving our credit profile and overall financial condition."
Key Highlights:
- Global Lottery delivers second-highest revenue and profit levels in segment history, driven by strong player demand
- Achieved approximately two-thirds of $200M+ 2021 OPtiMa savings targets year-to-date
- Global Gaming returns to profitability as progressive recovery continues; Digital & Betting revenue increases 41% in the quarter
- Growing adoption of IGT's best-in-class cashless solutions, most recently with Agua Caliente Casinos and Washington's Lottery
- Completed sale of Italy B2C gaming businesses; net proceeds used to partially fund full redemption, by make-whole call, of 4.750% Senior Secured Euro Notes due February 2023
- Announced 25th anniversary of Wheel of Fortune® Slots; deployed Wheel of Fortune®-themed Historical Horse Racing games at Churchill Downs in Kentucky
- Signed seven-year systems contract with Maryland Lottery connecting 11,500 Video Lottery Terminals and Electronic Table Games across six casinos
- Expanded availability of PeakSlant49™ cabinet, with high-performing core video content, under purchase model
- Recently won "Casino Supplier of the Year" award in 2021 Global Gaming Awards London
Financial highlights:
Consolidated revenue of $1.0 billion, up 74% from the prior year
- Global Lottery revenue rises 58% to $725 million, driven by 35% growth in same-store sales
- Global Gaming revenue totals $316 million, up 126% from the prior year and 19% sequentially on continued recovery trends
Operating income of $244 million compared to operating loss of $72 million in the prior year
- High profit flow-through of Global Lottery same-store sales growth
- Mix of high-margin Italy lottery sales
- Disciplined cost management and benefits from OPtiMa structural cost-savings program
Net interest expense of $91 million compared to $96 million in the prior year, driven by lower average debt balances and interest rates
Provision for income taxes of $32 million compared to a benefit from income taxes of $3 million in the prior year, on significant increase in operating profitability
Net loss of $39 million versus net loss of $268 million in the prior-year period, primarily driven by significant increase in revenue
Adjusted EBITDA of $442 million compared to $164 million in the prior-year period; Global Lottery delivers near record segment-level Adjusted EBITDA
Net debt of $6.3 billion, down over $1.0 billion from $7.3 billion at December 31, 2020; Net debt leverage of 4.3x, down from 6.4x at December 31, 2020, driven by strong financial results, cash flow generation, and proceeds from sale of Italy gaming businesses
Cash and Liquidity Update
- Total liquidity of $1.9 billion as of June 30, 2021; $639 million in unrestricted cash and $1.3 billion in additional borrowing capacity
- $748 million in net cash proceeds from sale of Italy gaming businesses used to fund redemption of 4.750% Euro bonds due 2023
- Executed amendment and extension of Term Loan Facility in July, increasing liquidity, extending debt maturities, and lowering interest costs
Outlook
- Second half 2021 revenue and operating income from continuing operations of $2.0 billion and $300 million, respectfully, meaningfully higher than prior year
- Global Lottery returns to more normal growth rates applied to higher levels of consumption; third quarter-to-date same-store sales up double digits versus 2019
- Global Gaming progressive recovery continues
- Second half 2021 compared to first half 2021
- Revenue, operating income, and cash from operations lower on normalization of lottery growth trends
- Capital expenditures of approximately $175 million, sequentially accelerating to support growth; full year capital expenditures below 2019 levels
- Depreciation and amortization stable
- Does not factor in any additional impact from COVID-19 restrictions
