International Game Technology has reported fourth quarter and full year 2022 results. Q4 financial performance exceeded the high end of outlook with revenue of $1.1 billion, propelled by 7% same-store sales growth in Global Lottery, a 21% increase in global gaming revenue, and a record contribution from PlayDigital.
Additionally, the last quarter of the past year saw a 24% increase in operating income to $230 million, and an operating income margin of 21%, up 340 basis points versus the previous year “on substantial increase in global gaming and PlayDigital profitability.”
The full-year 2022 performance also met the high end of the outlook with revenue of $4.2 billion, up 3% as reported and 8% at constant currency. Moreover, the gaming tech giant posted a record operating income of $922 million, with a 22% operating income margin that includes a “significant” global gaming improvement.
“We achieved all our financial goals last year while strengthening product leadership positions across our global lottery, global gaming, and PlayDigital activities,” said Vince Sadusky, CEO of IGT.
“Important strategic work executed over the last few years has transformed IGT into a company with higher growth prospects, a better profit profile, and a solid path to delivering on our long-term goals,” he added. “It has also enabled record capital returns to shareholders in 2022. We enter 2023 from a position of strength with good momentum across business segments.”
During the past year, the business delivered $899 million in cash from operations and $582 million in free cash flow “on strong performance and disciplined management of invested capital.” The company further reduced its net debt by $771 million and returned a record $276 million to shareholders.
The business now expects full-year 2023 revenue of $4.1 – $4.3 billion with operating margin of 21% – 23%. And on a more immediate basis, for the first quarter of the current year, IGT predicts revenue of approximately $1.0 billion with operating margin of 22% – 24%
“2022 was another year of significant financial accomplishments,” commented Max Chiara, CFO of IGT. “With reduced interest expense and improvements to the effective tax rate, 2022 adjusted EPS highlights IGT’s significantly improved earnings power. We generated strong cash flow while funding increased investments for future growth.”
“This, coupled with proceeds from sales of non-core businesses, allowed us to meaningfully reduce debt and leverage to the lowest levels ever,” Chiara further pointed out. “The company’s enhanced credit profile and significant liquidity provide solid support and flexibility as we execute our multi-year plan.”
IGT reported fourth-quarter earnings per share of $0.40, $0.04 better than the analyst estimate of $0.36. Revenue for the quarter came in at $1.1 billion versus the consensus estimate of $1.03 billion.