IGT Plc believes that its commercial pipeline can withstand a “worsening macroeconomic environment” impacting its Q1 results.
The group posted $583m in revenue, down from $661m in Q1 2024. Operating income dropped 37% to $138m, while income from continuing operations fell sharply to $8m, including a $33m non-cash FX hit tied to EUR/USD fluctuations on debt.
Adjusted EBITDA slipped 24% to $250m, with margins narrowing to 42.8%. IGT attributed the weaker performance to lower jackpot-linked marketing incentives, FX translation losses, and the timing of central system and terminal sales booked in the prior year.
“Instant ticket and draw game demand remains strong, but the comparative headwinds from last year’s high jackpot cycle and licensing deals were always going to show,” said CEO Vince Sadusky.
Q1 marked the first quarter since IGT announced the divestment of its Gaming and Digital division to Apollo Global in a $4bn deal. The restructuring, which refocuses IGT as a pure-play lottery firm, incurred incremental rebranding and strategic separation costs.
Despite the income drop, the firm maintains a strong balance sheet. Cash and equivalents rose to $631m, and total liquidity reached $2.2bn including $1.5bn in undrawn credit lines. Net debt stood at $5.05bn, with leverage at 2.8x on a pro forma basis, reflecting the $2bn reduction expected after the Apollo transaction closes.
In March, IGT secured a €1bn term loan due 2030. Half was drawn to repay existing credit borrowings, while the remaining €500m is being held for the upcoming Italy Lotto licence.
Guidance for 2025 was reiterated, with IGT targeting $2.55bn in revenue and $1.10bn in adjusted EBITDA — the low end of the range issued in February. However, cash from operations is now forecast to show a $350m outflow, largely due to FX impacts on Italy licence fee payments.
Group CFO Max Chiara said: “We remain well-positioned with a solid financial profile and ample liquidity ahead of important contract renewals. Q1 profit was in line with expectations at constant currency and we delivered strong cash conversion.”
