In the year 2021, IGT’s total debt declined, hitting its 2022 financial leverage target a year in advance. This was a result of its income rising by 31.1% to $4.09 billion (£3.07 billion/€3.69 billion) and the sale of its Lottomatica division.
Of IGT’s three core business divisions, the Global Lottery segment brought in $2.81 billion in income, a 30.2% increase from the prior year.
Nearly all lottery revenue came from services, including $2.36 billion in net revenue from operational and facility management agreements and $327 million in revenue from other services.
The Global Gaming division, which is land-based gaming, produced $1.11 billion in income, a 33.3% increase from the previous year. Service income accounted for $630 million, with the majority coming from terminals, while product sales generated $482 million.
Finally, the Digital & Betting division generated $165 million in revenue, up 43.8%, with all but $1 million coming from services.
This means IGT’s total service income was $3.48 billion, up 31.9%, while product sales revenue was $606 million, up 27.3%.
More than half of IGT’s income came from the United States and Canada, generating $2.25 billion. Italy generated $1.3 billion in revenue, while the rest of the world generated $539 million.
Despite the increase in income, IGT’s operating expenses decreased by 1.2% in 2021, falling to $3.19 billion.
This was primarily due to the commercial effect from a $296 million goodwill impairment charge associated with COVID-19 in 2020.
Dissecting these operational expenses, the firm paid $1.75 billion in the cost of services, an increase of 7.3%, and $377 million in the cost of goods sold, an increase of 9.1%. Furthermore, it paid $810 million in sales, general, and administrative expenses, an increase of 14.2%, and $238 million in research and development expenses, an increase of 24.6% from the previous year.
These expenses resulted in IGT achieving an operating profit of $902 million in 2021, compared to a loss of $107 million in 2020.
Vendors paid $341 million in interest expense and $98 million in other expenses, but received a $66 million gain from foreign exchange rate fluctuations, compared to a loss of $309 million the previous year.
This indicates that IGT achieved a pre-tax profit of $529 million, after a pre-tax loss of $848 million in 2020.
After paying $274 million in income taxes, it earned a profit of $255 million from continuing operations, compared to a loss of $875 million the previous year.
During the year, the company also divested its Italian B2C business, Lottomatica, to Apollo Global for a total consideration of €950 million. This discontinued operation generated $24 million in revenue before its sale in May, a decrease of 34.5%, while IGT received $391 million from the sale that year.
Taking this into account, IGT’s final income was $670 million, compared to a loss of $839 million in 2020.
A prominent gaming enterprise, IGT, declared robust financial outcomes for the year 2021, surpassing expectations across all domains. Vince Sadusky, the chief executive officer, who assumed leadership shortly after the year’s conclusion, emphasized the company’s remarkable income, earnings, and cash flow, attributing the achievement to exceptional performance across its complete collection of offerings.
Sadusky conveyed his enthusiasm about guiding IGT into its subsequent stage of expansion, underscoring the company’s ambitious yet attainable multi-year objectives and its concentrated strategy to maximize value for all participants.
Mark Chiara, the chief financial officer, mirrored Sadusky’s optimism, stating that IGT commences 2022 with a solid financial base and a strong foundation for continued growth.
The company’s powerful performance in 2022 resulted in a reduction of net debt to $1.4 billion, leading to the lowest leverage ratio in the company’s history.
In the final quarter of 2021, IGT’s revenue attained $1.05 billion, an impressive 18.6% surge compared to the preceding year.
The worldwide lottery business contributed the most revenue, reaching $687 million, a 9.0% increase.
The global gaming business witnessed even faster growth, with revenue rising by 44.6% to $321 million.
Digital and betting revenue also expanded significantly, reaching $42 million, a 25.2% increase.
After accounting for operational expenditures of $864 million, IGT’s operating income reached $186 million, nearly double the final quarter of 2020.
The firm generated a profit of $55 million during the current fiscal period, even after factoring in extraordinary expenditures and discontinued operations. This marks a significant shift from the previous year, when they incurred a loss of $232 million during the same timeframe.
Earlier this week, they divested their Italian payment enterprise, Lispay, to PostePay for €700 million. This equates to approximately £523.9 million or $627.2 million.
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