In This Article:
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Revenue: $583 million in Q1 2025, down from $661 million in the prior year.
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Adjusted EBITDA: $250 million with a 43% margin.
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Cash Conversion Ratio: 67%, delivering $168 million in cash from operations and free cash flow of $92 million.
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Net Debt: Increased by $270 million to $5 billion, with a pro forma net debt leverage of 2.8 times.
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iLottery Sales Growth: Increased by 26% in Q1 2025.
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Same-Store Sales Growth: Global instant ticket and draw games rose nearly 1.5%.
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Normalized Same-Store Sales Growth in Italy: 2% increase.
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Full Year 2025 Revenue Outlook: Approximately $2.55 billion.
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Full Year 2025 Adjusted EBITDA Outlook: $1.1 billion.
Release Date: May 13, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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International Game Technology PLC (NYSE:IGT) reported $250 million in EBITDA at a 43% margin, highlighting the resilient profit structure of its lottery business.
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iLottery sales increased by 26% in Q1, driven by strong performance across geographies, particularly in the US with significant growth in Kentucky and Georgia.
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The company successfully launched the Mega Millions game at a $5 price point, which is expected to drive increased sales and revenues.
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IGT is expanding its retail touchpoints with initiatives like self-service lottery vending machines and in-lane purchasing, which are expected to generate incremental sales.
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The company maintains a strong financial condition with pro forma net debt leverage below 3 times, and a significant liquidity buffer of $2.2 billion.
Negative Points
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IGT's Q1 revenue of $583 million was down from $661 million in the prior year, primarily due to lower jackpot activity and associated impacts.
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The company revised its full-year 2025 revenue and adjusted EBITDA guidance to the low end of previous ranges due to macroeconomic uncertainties and lower jackpot activity.
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There was a significant impact from the lack of large multi-state jackpots, which are sporadic and cause period-to-period variability in revenue.
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The company is facing challenges from macroeconomic and geopolitical uncertainties, including tariffs and declining consumer confidence.
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IGT's net debt rose by $270 million from the end of December 2024, partly due to foreign currency translation and working capital impacts.
Q & A Highlights
Q: Can you elaborate on the guidance revision and the impact of macroeconomic factors on IGT's performance? A: Massimiliano Chiara, CFO, explained that the macroeconomic situation is fluid, particularly with tariff discussions. While core player demand remains stable, volatility is mainly due to jackpot performance and LMA impacts. The company is cautious about growth projections, especially in core EUR markets, but expects some growth in the second half of the year. CEO Vincent Sadusky added that the quarter was challenging due to fewer jackpot run-ups compared to the previous year, impacting sales and growth expectations.