IGT’s Revenue Decline in Q3 

Key Financial Metrics: Q3 2024 Performance

The reported decrease was partly due to an unusually high level of multi-state jackpot activity in the United States during the previous year.

Despite the overall revenue drop, IGT saw growth in specific sectors, including a 2.7% increase in sales within the Italian market and positive trends in instant ticket sales and lottery games across the United States.

IGT’s service revenue reached $566 million, marking a 2% year-over-year decline. Product sales also fell by a notable 17%, bringing in $20 million. Operating income was down 33% from last year, landing at $110 million. This decline was influenced by a $38 million restructuring charge associated with IGT’s new OPtiMa 3.0 program, a strategic initiative aimed at optimizing the company’s operational and administrative framework.

Adjusted EBITDA totaled $264 million, a 6% drop compared to the prior year, reflecting a margin of 44.9%, down from 46.4% previously. Additionally, the company reported a net loss of $0.39 per share, a shift from last year’s earnings of $0.23 per share. Adjusted net loss per share was $0.02, in contrast to an adjusted net income of $0.04 per share in the same period last year.

Introducing OPtiMa 3.0

During Q3 2024, IGT launched its OPtiMa 3.0 program, a major restructuring initiative aimed at reducing costs and realigning the company’s focus towards becoming a global lottery-centric enterprise. This restructuring includes a 3% reduction in workforce, anticipated to save the company $40 million annually by the end of 2026.

Key initiatives under OPtiMa 3.0 include addressing corporate costs related to the divestment of its Gaming & Digital division, reducing global headcount by around 3%, optimizing office space, and cutting indirect expenses to streamline the company’s leaner operating model. IGT expects these adjustments to yield $40 million in annual savings by 2026, with around 50% of these savings anticipated by the end of 2025.

The most pivotal shift for IGT in Q3 2024 was its move to become a lottery-focused business, aligning with its recent agreement to sell its Gaming & Digital division to Apollo Global Management Inc. funds, a deal expected to close by late Q3 2025. This decision supports IGT’s renewed focus on lottery services, as the company realigns its resources and operations to better compete in this market.

As part of its long-term growth initiatives, IGT is intensifying its efforts in the iLottery market, which saw a 26% increase in Q3 and throughout the year. The company is also expanding its instant ticket segment, securing new multi-year printing contracts with SCML in Portugal and FDJ in France.

With the OPtiMa 3.0 program and a narrowed focus on lottery, IGT aims to fortify its global standing in the lottery sector. This shift allows the company to dedicate resources to a growing demand for lottery solutions, positioning it for sustained operational efficiency and competitive strength in an evolving industry.