Connect with us
MARE BALTICUM Gaming & TECH Summit 2024

Latest News

INTERNATIONAL GAME TECHNOLOGY PLC REPORTS SECOND QUARTER 2022 RESULTS

Published

on

Reading Time: 6 minutes

 

  • Revenue of $1.02 billion, down 2% as reported and up 3% at constant currency, led by 23% growth in Global Gaming
  • Operating income of $228 million; operating income margin of 22% at high end of outlook on substantial increase in Global Gaming profitability and resilience in Global Lottery margin
  • Adjusted EBITDA of $409 million, in line with prior year’s record level at constant currency as Global Gaming performance offsets Lottery discrete benefits in the prior year; 40% adjusted EBITDA margin remains among the highest in Company history
  • Recognized a non-operating expense of $150 million representing the probable loss associated with legal proceedings related to Double Down Interactive LLC and its social gaming business sold in 2017
  • Diluted EPS from continuing operations of $(0.02); Adjusted diluted EPS from continuing operations of $0.57, up 78% from the prior year
  • Compelling shareholder returns with $135 million deployed for cash dividends and share repurchases year-to-date
  • Tightening full-year 2022 revenue outlook to reflect currency movements and perimeter impact from previously announced divestiture; reconfirming operating income margin outlook as fundamentals remain strong

 

International Game Technology PLC reported financial results for the second quarter ended June 30, 2022. Today, at 8:00 a.m. EDT, management will host a conference call and webcast to present the results; access details are provided below.

“Strong customer and player demand for IGT’s products and solutions drove some of our strongest profit results ever in the second quarter and first half of the year,” said Vince Sadusky, CEO of IGT. “Our business profile is supported by significant recurring revenue streams backed by long-term contracts and resilient end markets, providing a solid foundation on which to grow. We are laser focused on executing our strategic objectives and creating compelling value for our stakeholders.”

“Our first half results set us firmly on the path to achieving our 2022 financial targets,” said Max Chiara, CFO of IGT. “Rigor on costs and incremental revenue opportunities allow us to maintain our full-year operating income margin outlook despite unfavorable currency movements and macroeconomic challenges. At the same time, we are returning significant capital to shareholders via dividends and share repurchases.”

Advertisement

Overview of Consolidated Second Quarter 2022 Results

Quarter Ended

Y/Y
Change
(%)

Constant
Currency
Change
(%)

All amounts from continuing operations

Advertisement

June 30,

2022

2021

($ in millions)

GAAP Financials:

Advertisement

Revenue

 Global Lottery 

648

725

(11) %

Advertisement

(4) %

 Global Gaming

330

274

21 %

Advertisement

23 %

 Digital & Betting

43

42

1 %

Advertisement

4 %

Total revenue

1,021

1,041

(2) %

Advertisement

3 %

Operating income (loss)

Global Lottery

230

300

Advertisement

(23) %

(16) %

Global Gaming

57

1

Advertisement

NM

NM

Digital & Betting

8

9

Advertisement

(11) %

(10) %

Corporate support expense

(29)

(26)

Advertisement

(11) %

(26) %

Other(1)

(39)

(40)

Advertisement

3 %

2 %

Total operating income

228

244

Advertisement

(7) %

1 %

Operating income margin

22 %

23 %

Advertisement

Net cash provided by operating activities

196

249

(21) %

Cash and cash equivalents

Advertisement

673

639

5 %

Earnings per share – diluted

$(0.02)

Advertisement

$(0.48)

96 %

Non-GAAP Financial Measures:

Adjusted EBITDA

Global Lottery

Advertisement

330

414

(20) %

(13) %

Global Gaming

Advertisement

87

35

145 %

150 %

Digital & Betting

Advertisement

12

13

(7) %

(6) %

Corporate support expense

Advertisement

(20)

(21)

4 %

(14) %

Total Adjusted EBITDA

Advertisement

409

442

(7) %

(1) %

Adjusted EBITDA margin

Advertisement

40 %

4 %

Adjusted earnings per share – diluted

$0.57

$0.32

Advertisement

78 %

Free cash flow

117

176

(34) %

Advertisement

Net debt

5,722

6,312

(9) %

(1) Primarily includes purchase price amortization

Advertisement

Note: Reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures are provided at the end of this
news release

Key Highlights:

  • Recently completed acquisition of iSoftBet, a leading iGaming content provider and third-party aggregator, greatly expanding the Company’s proprietary content library and providing a world-class game aggregation platform
  • Won “Lottery Supplier of the Year” at 2022 SBC Awards North America in July
  • Introduced high-performing Money Mania wide area progressive game to commercial gaming jurisdictions following a successful launch in tribal casinos
  • Signed agreement with NUSTAR Resort & Casino to deploy IGT ADVANTAGE™ casino management system and a variety of leading games and cabinets
  • Announced expanded sports betting partnership with SuperBook® Sports to Tennessee, the fourth state where IGT’s PlaySports platform is powering the SuperBook Sports mobile betting app
  • Awarded a gold medal sustainability rating from EcoVadis, a leading sustainability rating agency
  • Recently released 2021 Sustainability Report which outlines the Company’s demonstrated environmental, social, and governance (ESG) performance

Financial Highlights:
Consolidated revenue of $1.02 billion, down 2% as reported, or up 3% at constant currency, from $1.04 billion in the prior year

  • Global Lottery revenue of $648 million compared to $725 million in the prior-year period, which included $70 million in prior-year benefits primarily from the closure of gaming halls in Italy
  • Global Gaming revenue increases 21%, or 23% at constant currency, to $330 million, driven by strong U.S. & Canada replacement unit demand, higher average selling prices, and increased installed base yields
  • Digital & Betting revenue of $43 million, stable with the prior year, as iCasino growth in the U.S. is partially offset by softness in other markets; North America sports betting market gross gaming revenue impacted by lower hold levels

Operating income of $228 million, down 7% as reported, or up 1% at constant currency, from $244 million in the prior-year period

  • Global Lottery operating income down, primarily due to about $60 million related to prior-year benefits referenced above
  • Global Gaming rises on higher revenue and profit flow through, partially offset by increased supply chain costs
  • Digital & Betting operating income of $8 million was relatively stable with the prior year

Adjusted EBITDA of $409 million matches prior year’s record level at constant currency; Adjusted EBITDA margin of 40% remains among the highest in Company history

Net interest expense of $75 million compared to $91 million in the prior year, driven by lower average debt balances and interest rates

During the second quarter, the Company recognized a pre-tax non-operating expense of $150 million ($114 million after tax) representing the probable loss associated with ongoing litigation (Benson v. Double Down Interactive LLC, No. 2:18-cv-00525 (W.D. Wash.)) and associated claims related to Double Down Interactive LLC and its social gaming business sold in 2017 by International Game Technology, a wholly-owned subsidiary of the Company

Income tax benefit of $11 million compared to a provision of $32 million in the prior year, primarily driven by recognition of the non-operating expense mentioned above and foreign exchange losses in the prior year with no tax benefit

Advertisement

Income from continuing operations of $34 million versus a loss from continuing operations of $39 million in the prior-year period, driven by income tax benefit, gains in foreign exchange, and lower debt retirement costs

Net loss attributable to IGT PLC of $4 million compared to net income of $306 million in the prior year due to gain on sale and income from discontinued operations in the prior-year period

Net loss from continuing operations attributable to IGT PLC per diluted share of $0.02 compared to a net loss from continuing operations attributable to IGT per diluted share of $0.48 in the prior year, on higher net income; adjusted net income per diluted share increased 78% to $0.57

Net debt of $5.7 billion compared to $5.9 billion at December 31, 2021; Net debt leverage of 3.5x was stable compared to December 31, 2021

Cash and Liquidity Update

Advertisement
  • Total liquidity of $2.1 billion as of June 30, 2022; $0.7 billion in unrestricted cash and $1.5 billion in additional borrowing capacity
  • Executed amendment and extension of revolving credit facilities in July 2022
    • Increased liquidity by $150 million to $1.83 billion and rebalanced EUR/USD mix to match operational exposure
    • Extended maturities to July 2027
    • Lowered interest margin and added ESG provision to allow for further potential reductions
    • Raised annual permitted restricted payments basket from $300 million to $400 million at current credit rating; potential to increase to $550 million

Other Developments
The Company’s Board of Directors declared a quarterly cash dividend of $0.20 per common share

  • Ex-dividend date of August 15, 2022
  • Record date of August 16, 2022
  • Payment date of August 30, 2022

Repurchased 750,000 shares for $15 million in the second quarter at an average price of $20.48 per share; 2.2 million shares repurchased for $54 million on a year-to-date basis at an average price of $24.89 per share

The Company expects to close on the sale of its Italian proximity payments/commercial services business in mid-to-late September

Tightening Full-year Revenue Outlook for Currency Rates and Business Disposition; Introducing Third Quarter 2022 Outlook
Full Year

  • Revenue of $4.1 billion – $4.2 billion
    • Lowered high end of range by $100 million
    • Reflecting changes in currency rates and impact from sale of Italian proximity payments/commercial services business in Q3’22
  • Operating income margin of 20% – 22% remains unchanged
  • Cash from operations of $850 – $950 million
    • Lowered high end of range by $50 million
    • Primarily driven by a working capital investment in higher inventory levels to proactively manage supply chain disruptions
  • Capital expenditures of approximately $350 million, lowered by $50 million to adjust for updated timing of spending
  • Free cash flow outlook remains unchanged

Third Quarter

  • Revenue of approximately $1.0 billion – $1.1 billion
  • Operating income margin of 18% – 20% includes approximately 150 – 200 basis point impact from project-related expenses

Outlook assumptions

  • EUR/USD exchange rate of 1.00 in the second half of 2022
  • Impact from sale of Italian proximity payments/commercial services business in mid-to-late September 2022
  • Operating income margin includes approximately 150 – 200 basis point impact from project-related and restructuring expenses expected in the second half of 2022
Continue Reading
Advertisement

Latest News

Impressive fields assembled for Royal Ascot automatic qualifiers at Gulfstream Park

Published

on

impressive-fields-assembled-for-royal-ascot-automatic-qualifiers-at-gulfstream-park

 

Automatic spots and a trip to Royal Ascot are on the line this Saturday at Gulfstream Park, with a pair of two-year-old turf stakes (the Royal Palm Juvenile and Royal Palm Juvenile Fillies) bearing important international implications. These five-furlong sprints each carry $120,000 purses and boast capacity fields of 12.

The Royal Palm series, launched last May, produced immediate returns in its inaugural year, with Crimson Advocate winning the Juvenile Fillies at Gulfstream Park before going on to land the prestigious Group 2 Queen Mary Stakes. Once again, this innovative series’ winners will receive an automatic berth into one of six two-year-old events at Royal Ascot, alongside a free equine travel stipend for shipping from the US.

Innovative partnerships like the Royal Palm are helping to improve North American participation and boost international interest at the world’s biggest meetings. 1/ST are putting their shoulders to the wheel for other ground-breaking initiatives in the immediate future, including recent partnerships with The Jockey Club (for the Group 1 Coral-Eclipse and the My Pension Expert July Cup) and France Galop (for the Group 1 Sumbe Prix Jean Romanet Stakes).

Meet the contenders for the Royal Palm Juvenile Fillies (Race 8):

Advertisement

#1-CHINA BLUE: Outrun fifth of 6 at Gulfstream May 2 and would be wheeling back on 9 days’ rest for trainer Javier Gonzalez. Last year’s runners in this race who had a Gulfstream prior outing finished fourth, eighth and ninth.

#2-KIP THE DISTANCE: Close-up second in debut dirt sprint at Gulfstream 9 days ago when finishing 6 lengths in front of returning rival China Blue. Sent off at nearly 22-1 at first asking for trainer Angel Rodriguez. Last year’s runners in this race who had a Gulfstream prior outing finished fourth, eighth and ninth.

#3-BUNRATTY MANOR: Trainer George Weaver (pictured above) swept last year’s Royal Palm Juvenile Fillies and Juvenile in the inaugural year for the event. Son of No Nay Never, who sired last year’s Royal Palm Juvenile winner No Nay Mets. Pair of turf works at Palm Beach Downs among the morning prep work for Saturday’s first outing. Sold for $195,000 at Goff’s yearling sale.

#4-YOU NEED ME: Rookie colt is by Triple Crown winner American Pharoah’s less-accomplished full-brother St. Patrick’s Day. Sold for $50,000 at Ocala in March and debuts off a series of dirt works for trainer J. David Braddy.

#5-BULLET: Trainer Mark Casse was third in this race last year with The Myth. Brings this $425,000 Keeneland September Yearling Sale buy to her debut off a long series of works at Casse farm and Palm Meadows. War Front colt is a maternal grandson of Surfside and great-grandson of Flanders, providing optimism for superior 2-year-old performances.

Advertisement

#6-RAMSEY POND: Owner Ken Ramsey’s sharp-working debut runner by Divisidero drew $100,000 at the Keeneland September Yearling Sale. Trainer Saffie Joseph Jr. and jockey Samy Camacho have strong 8-17 mark in tandem in recent years.

#7-THE QUEENS M G: 45-1 upset winner of her Keeneland dirt debut from tough post 11 was privately purchased and transferred to Saffie Joseph Jr.’s barn after that race. Last year’s winner Crimson Advocate was coming off a debut third on dirt at Keeneland. Has turf in her damside pedigree as her fourth dam Parade Green won the 1997 Mrs. Revere and 1998 Joe Namath (latter at Gulfstream) on turf.

#8-BOIS BLANC: Keeneland turf sprint debut runner-up at 24-1 odds was clearly second-best in that 11-runner lineup. Expect some early developers by sire First Samurai. Trainer Justin Wojczynski had a productive Keeneland meet with limited starters, just as his overall 2024 stats indicate.

#9-PERFECT SHANCES: Led every step in her lone start, a Keeneland dirt dash that clocked fifth-fastest of 9 two-year-old races at the 2024 Spring Meet. Trainer Wesley Ward finished second in this race last year with Ocean Mermaid, bet to 4-5 favoritism in her career debut. Last year’s winner Crimson Advocate was coming off a debut third on dirt at Keeneland. By dirt sprint star Shancelot, but her dam is full-sister to Sweet Harmony, who opened her career 2-2 including Monmouth’s Colleen Stakes turf sprinting.

#10-GOOD LONG CRY: Rookie enters on a modest string of 3-furlong drills on turf and dirt. Trainer George Weaver swept last year’s Royal Palm Juvenile Fillies and Juvenile in the inaugural year for the event. Sire Long On Value opened his career 3-3, earned more than $1 million and was a Grade 1-winning turf sprinter.

Advertisement

#11-MY EMMY: Trainer Mark Casse was third in this race last year with The Myth and notably campaigned this filly’s sire War of Will to 2019 Preakness glory and eventually Grade 1-winning turf credentials. Trio of published workouts at Palm Meadows includes a pair of half-miles on turf.

#12-UNCHAINED ELAINE: Clear-cut runner-up in her April 12 Gulfstream dirt sprint debut. Daughter of Triple Crown winner American Pharoah, who, at stud, has had his most success with turf fillies. Trainer Patrick Biancone, who trained the dam Razorback Lady to success sprinting on dirt and turf, turns to jockey Keith Asmussen, fresh off the conclusion of the Oaklawn Park meeting. Last year’s runners in this race who had a Gulfstream prior outing finished fourth, eighth and ninth.

Meet the contenders for the Royal Palm Juvenile (Race 10):

#1-MAKEIT TO CHEYENNE: From the female family of elite sprinter Munnings, this son of Breeders’ Cup Dirt Mile winner Liam’s Map debuts for trainer Mark Casse. Series of workouts at Palm Meadows includes one on turf and a bullet on dirt May 4.

#2-ENTERDADRAGON: $17,000 purchase by Outwork debuts off a series of 7 workouts at Palm Meadows, the most recent of which came on turf. Outwork sired last year’s brilliant early season 2-year-old filly Brightwork, winner of the Debutante, Adirondack and Spinaway Stakes. Jose D’Angelo trains the direct descendent of the legendary mare Personal Ensign, his fourth dam.

Advertisement

#3-MADROC: Constitution colt chased and tired to be fifth in his Keeneland turf debut April 25, finishing behind Royal Palm Juvenile rival Bright Skittle. Ocala-based colt returns to Florida for trainer Mary Lightner. Dam Holly Hundy was a Colonial Downs turf sprint stakes winner.

#4-CLASSY WAR: Trainer Mark Casse notably campaigned this colt’s sire War of Will to 2019 Preakness glory and eventually Grade 1-winning turf credentials. Boasts bullet drills on turf not once, but twice, at Palm Meadows for the debut, notable this time of year when working amongst older horses.

#5-REACH FOR THE ROSE: Home-bred debuts for owner Ken Ramsey and trainer Saffie Joseph Jr. By Holy Bull-Florida Derby winner Audible and whose second dam was a juvenile turf stakes winner for the Ramseys. Solid turf work coming into this capped a string of 6 clocked morning moves.

#6-I KNOW I KNOW: Long, strong series of 8 workouts for the debut, including a bullet on turf at Palm Meadows on Sunday. Trainer Patrick Biancone tabs Keith Asmussen to ride, fresh off the Oaklawn meeting that closed last weekend. Sire Jess’s Dream, the impeccable son of Curlin-Rachel Alexandra, won his 1 and only start before going to stud. His best success at stud has been with turfer My Dani Girl.

#7-GABALDON: $9,000 purchase by Gone Astray debuts after 7 Palm Meadows published workouts for Jose D’Angelo. Solid turf move April 26 among those. D’Angelo teams with Emisael Jaramillo, winning at a 20% rate in tandem over the past year-plus.

Advertisement

#8-RAISE THE BAR: Cruised to victory in his lone start, a Keeneland dirt dash that clocked second-fastest of 9 two-year-old races at the 2024 Spring Meet. Trainer Wesley Ward finished seventh in this race last year with 4-5 favorite and debut runner Holding the Line. Ward has trained 2 other offspring of this mare, both of which found the winner’s circle in their first or second start.

#9-BRIGHT SKITTLE: Late-running debut third on turf at Keeneland on April 25, finishing 1 length in front of Royal Palm Juvenile rival Madroc after a troubled break. $142,000 pricetag on this son of Twirling Candy and the debut-winning mare Harbor Lights (her first foal to race). Trainer Rusty Arnold has had many top turf sprinters in his care, including Leinster and Gear Jockey.

#10-GOVERNOR SAM: Trainer George Weaver swept last year’s Royal Palm Juvenile Fillies and Juvenile in the inaugural year for the event, winning this race with debut runner No Nay Mets. This rookie sold for $275,000 at Ocala in April and is from the first crop of $2.7 million earner Improbable. Grandsire City Zip long known for turf sprint success at stud. Bullet workout on dirt at Palm Beach Downs April 25 among 2 published drills. Dam I’m Betty G was a multiple stakes winner on turf.

#11-INCANTO: Stonestreet Stable looks to continue its annual treks to Royal Ascot with this Irish-bred rookie who is working bullets. Jack Sisterson trains, while much of the Stonestreet-to-Ascot history came with Wesley Ward. Sire Mehmas best known to US players for exported offspring Going Global and Chez Pierre.

#12-GARDEN OF WAR: Like Classy War in this same field, trainer Mark Casse notably campaigned this colt’s sire War of Will to 2019 Preakness glory and eventually Grade 1-winning turf credentials. Back-to-back bullet workouts at Palm Meadows on dirt and turf coming into the career debut. Casse turns here to jockey Miguel Vasquez, a 21% winning combination over the past year-plus.

Advertisement

 

Continue Reading

Latest News

FAIRPLAY SPORTS MEDIA LAUNCHES INDUSTRY-FIRST AMERICAN FOOTBALL CONTENT SERVICE FOR MEDIA PARTNERS

Published

on

fairplay-sports-media-launches-industry-first-american-football-content-service-for-media-partners

 

NFL Odds & AI Projections Season Pass To Empower Partners with Innovative Content Monetization Tools

FairPlay Sports Media (FPSM), the global sports media network fuelled by data and powered by fans, has announced the launch of the NFL Odds & AI Projections Season Pass, an AI-powered insights and odds service for global media partners looking to improve revenue streams from American Football content and capitalize on enhanced consumer engagement.

The pass utilizes FairPlay’s Live AI Sports Projections platform, leveraging the unique deep-learning neutral network capabilities of recently acquired Quarter4, to fire up consumer engagement and open new revenue streams for publishers and media partners through the integration of odds feeds, no-code widgets, and an insights platform.

Available on an in-season only basis, the NFL Odds & AI Prediction Service allows partners to present consumers with deeper insight via real-time futures projections with 100% uptime, pre-match data 14 days out from gameday, and in-play odds across every NFL and NCAA match.

Advertisement

Smart monetization tools, including first-of-its-kind offer widgets that give bettors the confidence to act across thousands of core and micro-betting markets are also integrated, with US partners able to offer state-specific promotions and deep links to operator betslips, while global partners can also access 100m live prices weekly covering over 90 territories.

Quarter4’s Live AI Sports Projections platform will also provide bettors with the edge on player-specific data, with its ‘Player Effect,’ ‘Hottest Props,’ and ‘Diamond In the Rough’ projections while editorial teams will be able to access detailed insight that translates the real-time impact of player injuries, trades, and hidden value to best craft content that further engages readers.

Stuart Simms, Group CEO at FairPlay Sports Media, said: “This American Football service is a potent combination of Quarter4’s acclaimed AI projections and the FairPlay group’s media and affiliate expertise. Together, this service removes hurdles and empowers partners to drive user engagement and, in turn, monetize their content to generate new, more sustainable revenue streams.

“With this launch, we’re turning on the power of both the fan and the machine to level the playing field for bettors looking for an edge, as well as media partners aiming to cut through with quality content in a more effective manner, no matter their location or size.”

Having been trialed with various top-tier media partners in recent months, the NFL Odds & AI Projections Season Pass is available now via ‘Starter’ or ‘Advanced’ subscription packages, with partners able to sign up for an annual or season-only service, while more sports will be added in due course with associated cost-savings when bundled together.

Advertisement

 

Continue Reading

Latest News

BGaming donates to Brazilian art institute in support of creative children’s projects

Published

on

bgaming-donates-to-brazilian-art-institute-in-support-of-creative-children’s-projects
Reading Time: 2 minutes

 

Popular iGaming content provider BGaming has bolstered its ongoing commitment to grassroots arts by making donations to the A7MA Galeria Institute in Sao Paulo, Brazil, which supports children’s creative development.

As part of its ‘When Art Meets Gaming’ project, BGaming has collaborated with several local artists to create murals for industry events over the last year. For SiGMA Americas in April, the studio also chose to give back to the host city by funding art projects for children.

BGaming made a donation to support three charity initiatives. A portion was donated to coordinate a visit to the A7MA Gallery, where children from the Felicidarte Project took a tour of popular tourist attraction ‘Batman’s Alley’ and learnt about the art. Later, A7MA funded an activity where children were invited to transform the facades of their homes into colourful murals.

Advertisement

Another part of the donation was allocated to renovations for Felicidarte Project’s warehouse space, to revamp the area so it can invite school groups each week and distribute food to the underprivileged areas.

The significant charitable push follows a successful SiGMA Americas in Sao Paulo from 23rd to 26th April, where BGaming collaborated with artistic duo, Clandestinos Art, to reinterpret BGaming’s iconic game heroes, and create a limited edition merchandise collection, branded gifts and their stand design.

Marina Ostrovtsova, CEO at BGaming, said: “At BGaming, it brings us so much joy to see our donations promoting art among the young people of Sao Paulo.

“As we have proven over the past year with our ‘Art Meets Gaming’ project, creativity unites us all and we were delighted to hear how much the children enjoyed the activities provided. We can’t wait to hear about these budding artist’s creations in the future.”

Marcos Ramos Enivo, Artist and Counsellor at A7MA Galeria Institute, said: “We are grateful to BGaming for their support of our work at A7MA. The activities exceeded our expectations, with 47 artists present and 46 facades revitalised by the children.

Advertisement

“It was an absolute success. People in the favelas who are sometimes invisible to the government can now feel seen, recognised and valued.”

 

BGaming is a fast-growing iGaming content provider converting gambling into gaming. Thanks to an expert team and a player-driven approach, the studio creates innovative and engaging products featured on reputable platforms and 1,100+ online casinos worldwide. BGaming is the world’s first to support cryptocurrencies and offer Provably Fair games. Today the brand’s portfolio includes 150+ products with HD graphics and a clear user interface for every device. The studio is also known for its brand exclusives created in partnerships with leading operators in the industry.

The post BGaming donates to Brazilian art institute in support of creative children’s projects appeared first on European Gaming Industry News.

Advertisement
Continue Reading

Trending