International Game Technology PLC (NYSE:IGT) stock fell 1.55% (As on May 15, 11:24:36 AM UTC-4, Source: Google Finance) after the company beating consensus estimates for the first quarter of FY 24 driven by better-than-expected results for the Global Lottery and Gaming & Digital segments. Global lottery revenue rose 6% year-over-year to $661 million on significantly higher product sales, driven by the delivery of GameTouch 28 self-service terminals in Canada and software upgrades in Singapore and Germany. IGT also pointed to continued same-store sales strength in Italy. The 24% operating margin was 400 basis points higher than anticipated, mostly on better lottery results from Italy same-store sales, and strong North American jackpot activity in late March, in addition to the timing of separation and divestiture costs. The company delivered record operating income of $273 million, excluding separation and divestiture costs.
Moreover, Global Lottery revenue rose 6%, driven by Italy game innovation and strong product sales growth. Global Lottery is now achieved six consecutive quarters of operating margin expansion. Global same-store sales were better than expected largely on strong Italy instant ticket performance and significant us multistage jackpot activity towards the end of the quarter. Thanks to $1 billion plus jackpots for both Powerball and Mega Millions. Same store sales in North America and the rest of the world were slightly below prior year, mostly due to differences in the year-to-year cadence of new instant ticket game launches, especially for higher price games. Global Lottery sales continue to expand at a fast split, up over 20% of the period, led by a growing portfolio of high-performing e-instant games like Ghostbusters in the US and Ultra Numerissimi in Italy. IGT’s best-in-class lottery hardware and software solutions drove another quarter of strong product sales growth.
IGT in the first quarter of FY 24 has reported the adjusted earnings per share of 46 cents, beating the analysts’ estimates for the adjusted earnings per share of 29 cents, according to Zacks Investment Research. The company had reported the adjusted revenue of $1.07 billion in the first quarter of FY 24, beating the analysts’ estimates for revenue of $1.03 billion.
IGT sees full-year revenue of $4.4B, which is better than the prior outlook for $4.3M to $4.4B and the consensus estimate of $4.35B. Looking ahead, International Game Technology plans to spin off its gaming and digital business and combine it with Everi Holdings. That transaction is expected to close in the late part of 2024 or early 2025.