International Game Technology PLC (NYSE:IGT) stock rose 3.03% (As on May 14, 11:25:58 AM UTC-4, Source: Google Finance) after the company reported a leap in first-quarter income from what it classifies as its pending discontinued IGT Gaming business for the land-based casino sector. The company reported first quarter earnings that fell short of analyst expectations, as lower U.S. multi-state jackpot activity and product sales timing impacted results. The company also lowered its full-year revenue and profit guidance. The company cited lower U.S. multi-state jackpot activity and associated LMA impacts, as well as product sales timing, as key factors impacting the year-over-year comparisons. Global same-store sales for instant tickets and draw games rose 1.4% when normalized for calendar effects. Income from continuing operations of $8 million compared to $116 million in the prior year period. Adjusted EBITDA of $250 million compared to $327 million in the prior-year period, driven by high profit flow-through from elevated U.S. multi-state jackpot sales and associated LMA incentives in the prior year, higher terminal sales and beneficial product mix in prior year, Incremental investments to drive sustainable long-term growth, Rebranding costs associated with separating Lottery from Gaming & Digital and Negative foreign currency translation. Net debt of $5.0 billion compared to $4.8 billion at December 31, 2024, including an approximate $130 million impact from fluctuations in the EUR/USD exchange rate; net debt leverage of 2.8x pro forma for $2 billion committed debt reduction expected following the closing of the Gaming & Digital sale transaction. Total liquidity of $2.2 billion as of March 31, 2025; $0.6 billion in unrestricted cash and $1.5 billion in additional borrowing capacity from undrawn credit facilities.

IGT in the first quarter of FY25 has reported the adjusted earnings per share of 9 cents, missing the analysts’ estimates for the adjusted earnings per share of 27 cents. The company had reported the adjusted revenue decline of 12 percent to $583 million in the first quarter of FY25, beating the analysts’ estimates for revenue of $636.61 million.

For the full year 2025, IGT now expects revenue of approximately $2.55 billion, down from its previous outlook and below the $2.573 billion analyst consensus. The company said it’s likely to be at the low end of its original guidance ranges provided in February due to lower jackpot activity and a worsening macroeconomic environment. The company expects Given lower U.S. multi-state jackpot activity and the current worsening macroeconomic environment, the Company now expects Adjusted EBITDA of approximately $1.10 billion, which align with the low end of the original ranges provided in February 2025; cash from operations is now expected to be a use of approximately $350 million, primarily to account for the incremental FX impact on the first two installments of the Italy Lotto license fee.