End-to-end global gaming company International Game Technology Plc (IGT:NYSE) today announced financial results for the first quarter of 2021 that ended March 31, 2021.
The firm's CEO Marco Sala commented, "We delivered some of our strongest profit results ever during the first quarter, fueled by robust player demand and significant, structural cost savings...Our Global Lottery segment achieved record same-store sales levels on impressive increases around the world. The Global Gaming segment is demonstrating swift, progressive recovery, including accelerated momentum for Digital & Betting activities. We expect to return to 2019 levels for key financial metrics this year."
IGT's CFO Max Chiara stated, "With the recovery in our business in full swing, we are delivering strong operating leverage which, when coupled with invested capital discipline, drove strong cash flows in the quarter...This enabled us to accelerate our debt retirement strategy and gives us confidence in a return to pre-pandemic leverage levels by the end of the current year."
International Game Technology stated that fueled by the strength in its global lottery business in Q1/21, it achieved among the highest revenue and profit levels in its history. The firm added that driven by its operating performance and investment strategy it has been able to deliver strong cash flow and expects to return to pre-pandemic leverage by year-end 2021.
The company advised that it enjoyed an 85% year-over-year increase in digital & betting revenue in Q1/21. In addition, IGT successfully refinanced approximately $1.0 billion in its corporate debt at significantly lower interest rates.
The firm also pointed out that it recently signed multi-year lottery contract extensions in Jamaica, Mexico and the state of Kentucky.
The company reported that consolidated revenue in Q1/21 increased by 25% to $1,015 million, compared to $814 million in Q1/20 due to overall global lottery performance and continued recovery in global gaming, which showed great acceleration in digital & betting activities.
The firm indicated that in Q1/21 global lottery revenue increased 48% YoY to $749 million, which was achieved largely from a 32.4% growth in same-store sales. Global gaming revenue in Q1/21 decreased to $266 million, compared to $310 million in Q1/20, but did improve by $11 million versus the $255 million posted in Q4/20, which the company said was attributed to the continuing recovery in U.S. gaming markets.
IGT reported operating income of $260 million in Q/21, compared to an operating loss of $218 million in Q1/20. The company stated that in Q1/21 it posted income from continuing operations of $138 million and adjusted EBITDA of $450 million, adding that these amounts were among the highest levels in its history.
The company posted net income of $92 million ($0.38 per diluted share) in Q1/21, compared to a net loss of $248 million ($1.28 per diluted share) in Q1/20.
International Game Technology is headquartered in London and employs about 11,000 people in its operations. The company is an international entertainment and gaming company that operates in multiple regulated business segments including digital betting, gaming machines, lotteries and sports betting. The firm has been successful in establishing a local presence in over 100 countries.
International Game Technology began the day with a market capitalization of around $3.6 billion with approximately 204.9 million shares outstanding and a short interest of about 1.2%. IGT shares opened almost 9% higher today at $19.00 (+$1.55, +8.88%) over yesterday's $17.45 closing price and reached a new 52-week high this afternoon of $20.72. The stock has traded today between $18.07 and $20.72 per share and is currently trading at $20.34 (+$2.89 +16.56%).
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