International Game Technology (IGT) reported a third-quarter loss that fell short of analyst expectations despite revenue growth. The company’s adjusted earnings per share came in at a loss of 2 cents, missing the consensus estimate of 21 cents. Quarterly sales reached $587 million, a 2% decrease from the previous year and slightly below the analyst consensus of $591.5 million. The decline in sales was attributed to elevated U.S. multi-state jackpot activity in the prior year. Additionally, the company incurred a $38 million restructuring charge related to optimizing administrative and operating activities following recent transformational actions.
However, IGT announced a significant boost to its financial position with the sale of its Gaming & Digital business to funds managed by affiliates of Apollo Global Management, Inc. for $4.05 billion in cash. This transaction is expected to enhance IGT’s financial flexibility and strategic focus.
Despite the overall loss, IGT showed positive performance in certain segments. Italy saw a 2.7% increase in same-store sales, and there was improvement in U.S. instant ticket and draw game trends. Other service revenue grew due to non-wager-based service contracts in Europe. However, operating income declined 33% year-over-year to $110 million, with an operating income margin contracting to 18.7% from 27.1%.
Looking ahead, IGT projects a strong fourth quarter with revenue for continuing operations expected to range between $640 million and $690 million, exceeding the current analyst estimate of $632.04 million. The company anticipates total revenue of $2.5 billion to $2.55 billion for fiscal year 2024, compared to the estimated $2.506 billion. IGT shares are trading higher by 0.47% to $21.50 premarket at last check Tuesday.
