IGT raises 2021 forecasts benefitting from $200m Q3 cost savings
IGT Plc has raised its full-year corporate forecasts, in light of peak performance results achieved during Q3 trading.
Publishing its Q3 trading statement, IGT more than doubled its operating income to $212 million (Q32020: $83m) as the NYSE gambling technology group registered +$200 million in from its ‘OPTIMA – structural cost-savings program‘.
Period trading saw IGT register group revenues of $984 million, up 21% on corresponding 2020 results of $816 million, propelled by double-digit growth across all business units – Global Lottery (+14%) – Global Gaming (+34%) and Digital & Betting (+37%).
Peak Q3 results were attributed to sustained client demand across its business units, combined with % margin gains for its Global Gaming and Digital & Betting products.
IGT’s revenue uplift was buoyed by a reduction in net interest expenses to $79 million (Q32020: $101m) – attributed to a significant lowering in the tech group’s interest payments on its debt balances.
Operational gains saw IGT record a 42% increase in EBITDA to $407 million – ‘among the highest levels in Company history’. Excluding structural cost-savings, IGT would register a period net income of $101 million (Q32020: $87m).
“Broad-based momentum across our Lottery, Gaming, and Digital & Betting activities drove significant improvement in key financial and performance metrics in the third quarter,” said Marco Sala, Group CEO of IGT.
“Revenue grew over 20% and operating income more than doubled, highlighting the strength of our portfolio. Based on our excellent year-to-date results and our solid financial condition, the Board reinstated a quarterly cash dividend, signaling their confidence in the Company’s prospects.”
Positive Q3 trading, saw IGT raise its full-year outlook as the NYSE firm targets group revenues of $4.1 billion, and operating income of + $900 million
“We are supporting strong top-line growth with strategic investments in the business while still making good progress on optimizing our cost structure,” said Max Chiara, Group CFO of IGT.
“Achieving our goal of reducing net debt leverage below 4.0x was a big accomplishment in the quarter. We look forward to sharing our strategy, long-term growth initiatives, and capital allocation plans during our upcoming investor day on November 16, 2021.”