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6-K 1 a6-kx1q25earningsrelease.htm 6-K Document


 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE
SECURITIES EXCHANGE ACT OF 1934

For the month of May 2025

Commission File Number 001-36906

INTERNATIONAL GAME TECHNOLOGY PLC
(Translation of registrant’s name into English)

10 Finsbury Square, Third Floor
London, EC2A 1AF
United Kingdom
(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:
Form 20-F Form 40-F




First Quarter 2025 Results of International Game Technology PLC

On May 13, 2025, International Game Technology PLC (NYSE:IGT) (the "Company") reported results for the quarter ended March 31, 2025.

On May 13, 2025, the Company also announced that the Board of Directors declared a quarterly cash dividend of $0.20 per share on its ordinary shares. The dividend is payable on June 12, 2025 to holders of record as of the close of business on May 29, 2025.

A copy of the news release relating to the above matters is set forth in Exhibit 99.1, which is being furnished herewith. In addition, a slide presentation relating to the results is set forth in Exhibit 99.2, which is being furnished herewith.


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EXHIBIT INDEX



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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: May 13, 2025 INTERNATIONAL GAME TECHNOLOGY PLC
  By: /s/ Pierfrancesco Boccia
    Pierfrancesco Boccia
    Corporate Secretary


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EX-99.1 2 igtq125earningspressrelease.htm EX-99.1 Document


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NEWS RELEASE

INTERNATIONAL GAME TECHNOLOGY PLC REPORTS
FIRST QUARTER 2025 RESULTS

•Q1'25 results confirm sustained player demand for instant tickets, draw games, and iLottery; lower U.S. multi-state jackpot activity & associated LMA impacts, in addition to product sales timing, impact prior year comparisons

•Income from continuing operations of $8 million includes $33 million non-cash impact of foreign exchange translation; margin of 1.4%

•Adjusted EBITDA of $250 million and Adjusted EBITDA margin of 42.8% highlight attractive profit structure of pure play lottery business

•Strong cash conversion and financial condition; ample liquidity to fund important contract renewals


LONDON – May 13, 2025 – International Game Technology PLC (“IGT” or the "Company") (NYSE:IGT) today reported financial results for the first quarter ended March 31, 2025. Today, at 8:00 a.m. EDT, management will host a conference call and webcast to present the results; access details are provided below.

“Global sales of instant ticket and draw games continue to expand, driven by a steady pipeline of game innovation and portfolio optimization strategies,” said Vince Sadusky, CEO of IGT. “While the world is currently faced with great uncertainty, we are excited about the initiatives we are working on to drive sustainable, long-term growth and shareholder value."

"First quarter profit was in line with expectations at constant currency and we delivered strong cash conversion," said Max Chiara, CFO of IGT. "Given lower U.S. multi-state jackpot activity and the current worsening macroeconomic environment, we believe it is likely we will be at the low end of the full-year revenue and Adjusted EBITDA guidance provided in February. With a solid financial profile and ample liquidity in advance of important contract renewals, we remain well-positioned for the future." Note: Reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures, and other disclosures regarding non-GAAP financial measures, are provided at the end of this news release
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Overview of Consolidated First Quarter 2025 Results

Quarter Ended Y/Y Change Constant Currency Change
All amounts from continuing operations
March 31,
2025 2024
($ in millions, except per share data)
GAAP Financials:
Revenue 583 661 (12)% (10)%
Operating income
138 219 (37)% (35)%
Operating income margin 23.7% 33.1%
Income from continuing operations 8 116 (93)%
Income from continuing operations margin 1.4% 17.5%
Earnings per share - diluted $(0.11) $0.35 NA
Net cash provided by operating activities 168 65 159%
Cash and cash equivalents 631 317 99%
Non-GAAP Financial Measures:
Adjusted EBITDA 250 327 (24)% (22)%
Adjusted EBITDA margin 42.8% 49.5%
Adjusted earnings per share - diluted $0.09 $0.28 (69)%
Free cash flow 92 30 204%
Net debt 5,047 5,222 (3)%

2



Financial Highlights
Revenue of $583 million compared to $661 million in the prior-year period
•Primarily driven by higher U.S. multi-state jackpot activity, associated LMA incentives, and multi-year central system software licenses and terminal sales in the prior year
•Instant ticket and draw wager-based revenue impacted by calendar shifts; global same-store sales up 1.4% when normalized for leap year in the U.S. and Rest of world, and a like number of instant ticket sell-in days and Lotto draws in Italy
•Higher instant ticket printing in the current year

Income from continuing operations of $8 million compared to $116 million in the prior year period
•Lower operating income, primarily driven by the items affecting Adjusted EBITDA as noted below
•Foreign exchange loss versus foreign exchange gain in the prior year, primarily reflecting the non-cash impact of fluctuations in the EUR/USD exchange rate on debt
•Partially offset by reduced interest expense and provision for income taxes

Adjusted EBITDA of $250 million compared to $327 million in the prior-year period
•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
•Negative foreign currency translation

Diluted loss per share from continuing operations of $0.11 compared to diluted earnings per share from continuing operations of $0.35 in the prior year; adjusted diluted earnings per share from continuing operations of $0.09 compared to $0.28 in the prior year driven by lower operating income, partially offset by reductions in net interest and income tax expense

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

Cash and Liquidity Update
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

Other Developments
On March 14, 2025, the Company successfully executed a €1 billion term loan due 2030
•€500 million drawn and used for repayment of borrowings under credit facilities
•€500 million committed but undrawn; to be utilized if awarded Italy Lotto license

The Company's Board of Directors declared a quarterly cash dividend of $0.20 per common share
•Record date of May 29, 2025
•Payment date of June 12, 2025

Full Year 2025 Outlook
Given lower U.S. multi-state jackpot activity and the current worsening macroeconomic environment, the Company now expects revenue of approximately $2.55 billion and 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 May 13, 2025, at 8:00 a.m. EDT

3



Earnings Conference Call and Webcast

To register to participate in the conference call, or to listen to the live audio webcast, please visit the "Events Calendar" on IGT’s Investor Relations website at www.IGT.com. A replay will be available on the website following the live event.

Comparability of Results
All figures presented in this news release are prepared under U.S. GAAP, unless noted otherwise. Amounts reported in millions are computed based on amounts in thousands. As a result, the sum of the components may not equal the total amount reported in millions due to rounding. Certain columns and rows within tables may not add due to the use of rounded numbers. Percentages and earnings per share amounts presented are calculated from the underlying unrounded amounts.

About IGT
IGT (NYSE:IGT) is a global leader in gaming. We deliver entertaining and responsible gaming experiences for players across all channels and regulated segments, from Lotteries and Gaming Machines to Sports Betting and Digital. Leveraging a wealth of compelling content, continuous investment in innovation, player insights, operational expertise, and leading-edge technology, our solutions deliver unrivaled gaming experiences that engage players and drive growth. We have a well-established local presence and relationships with governments and regulators in more than 100 jurisdictions around the world, and create value by adhering to the highest standards of service, integrity, and responsibility. IGT has approximately 11,000 employees. For more information, please visit www.IGT.com.

Cautionary Statement Regarding Forward-Looking Statements
This news release may contain forward-looking statements (including within the meaning of the Private Securities Litigation Reform Act of 1995) concerning International Game Technology PLC and its consolidated subsidiaries (the “Company”) and other matters, including with respect to the proposed sale of the Gaming & Digital business to funds managed by affiliates of Apollo Global Management, Inc. (the "Buyer"). These statements may discuss goals, intentions, and expectations as to future plans and strategies, expected growth, transactions, including the sale of Gaming & Digital to the Buyer and the use of proceeds therefrom, trends, events, dividends, results of operations, and/or financial condition or measures, including our expectations on future revenue, Adjusted EBITDA, cash from operations, and any other future financial performance guidance for continuing operations, based on current beliefs of the management of the Company as well as assumptions made by, and information currently available to, such management. Forward-looking statements may be accompanied by words such as “aim,” “anticipate,” “believe,” “plan,” “could,” “would,” “should,” “shall," “continue,” “estimate,” “expect,” “forecast,” “future,” “guidance,” “intend,” “may,” “will,” "outlook," “possible,” “potential,” “predict,” “project” or the negative or other variations of them. These forward-looking statements speak only as of the date on which such statements are made and are subject to various risks and uncertainties, many of which are outside the Company’s control. Should one or more of these risks or uncertainties materialize, or should any of the underlying assumptions prove incorrect, actual results may differ materially from those predicted in the forward-looking statements and from past results, performance, or achievements. Therefore, you should not place undue reliance on such statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include (but are not limited to) macroeconomic, regulatory and political uncertainty, including as a result of new or increased tariffs, trade wars, and other restrictions on trade between or among countries in which the Company operates, and related changes in discretionary consumer spending and behavior, fluctuations in foreign currency exchange rates, and the other factors and risks described in the Company’s annual report on Form 20-F for the financial year ended December 31, 2024 and other documents filed or furnished from time to time with the SEC, which are available on the SEC’s website at www.sec.gov and on the investor relations section of the Company’s website at www.IGT.com. Except as required under applicable law, the Company does not assume any obligation to update these forward-looking statements. You should carefully consider these factors and other risks and uncertainties that may affect the Company’s business, including management's discussion and analysis of potential or actual impacts to operations and financial performance.
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Nothing in this news release is intended, or is to be construed, as a profit forecast or to be interpreted to mean that the financial performance of International Game Technology PLC for the current or any future financial years will necessarily match or exceed the historical published financial performance of International Game Technology PLC, as applicable. All forward-looking statements contained in this news release are qualified in their entirety by this cautionary statement. All subsequent written or oral forward-looking statements attributable to International Game Technology PLC, or persons acting on its behalf, are expressly qualified in their entirety by this cautionary statement.

Non-GAAP Financial Measures
Management supplements the reporting of financial information, determined under GAAP, with certain non-GAAP financial information. Management believes the non-GAAP information presented provides investors with additional useful information, but it is not intended to, nor should it be considered in isolation or as a substitute for the related GAAP measures. Moreover, other companies may define non-GAAP measures differently, which limits the usefulness of these measures for comparisons with such other companies. The Company encourages investors to review its financial statements and publicly filed reports in their entirety and not to rely on any single financial measure.

Adjusted EBITDA represents net income (loss) from continuing operations (a GAAP measure) before income taxes, interest expense, net, foreign exchange gain (loss), net, other non-operating expenses (e.g., gains/losses on extinguishment and modifications of debt, etc.), net, depreciation, impairment losses, amortization (service revenue, purchase accounting, and non-purchase accounting), restructuring expenses, stock-based compensation, litigation expense (income), and certain other non-recurring items. Other non-recurring items are infrequent in nature and are not reflective of ongoing operational activities.

Adjusted EBITDA margin represents Adjusted EBITDA divided by revenue.

Adjusted EPS represents diluted earnings per share (a GAAP measure), excluding the effects of foreign exchange, impairments, amortization from purchase accounting, discrete tax items, and other significant non-recurring adjustments that are not reflective of on-going operational activities (e.g., gains/losses on sale of business, gains/losses on extinguishment and modifications of debt, etc.). Adjusted EPS is calculated using diluted weighted-average number of shares outstanding, including the impact of any potentially dilutive common stock equivalents that are anti-dilutive to GAAP net income (loss) per share but dilutive to Adjusted EPS. Management believes that Adjusted EPS is useful in providing period-to-period comparisons of the results of the Company's ongoing operational performance.

Net debt is a non-GAAP financial measure that represents debt (a GAAP measure, calculated as long-term obligations plus short-term borrowings) minus capitalized debt issuance costs and cash and cash equivalents, including cash and cash equivalents classified as held for sale. Cash and cash equivalents, including cash and cash equivalents held for sale, are subtracted from the GAAP measure because they could be used to reduce the Company’s debt obligations. Management believes that net debt is a useful measure to monitor leverage and evaluate the balance sheet.

Net debt leverage is a non-GAAP financial measure that represents the ratio of Net debt as of a particular balance sheet date to Adjusted EBITDA for the last twelve months (“LTM”) prior to such date. Management believes that net debt leverage is a useful measure to assess IGT's financial strength and ability to incur incremental indebtedness when making key investment decisions.

Free cash flow is a non-GAAP financial measure that represents cash flow from operations (a GAAP measure) less capital expenditures. Management believes free cash flow is a useful measure of liquidity and an additional basis for assessing IGT’s ability to fund its activities, including debt service and distribution of earnings to shareholders.

Constant currency is a non-GAAP adjustment to certain financial measures that expresses current financial data using the prior-year/period exchange rate (i.e., the exchange rate used in preparing the financial statements for the prior year). Management believes that constant currency is a useful measure to compare period-to-period results without regard to the impact of fluctuating foreign currency exchange rates.
5




A reconciliation of the non-GAAP measures to the corresponding amounts prepared in accordance with GAAP appears in the tables in this release. The tables provide additional information as to the items and amounts that have been excluded from the adjusted measures.

Full Year 2025 Outlook and Guidance Policy
Given lower U.S. multi-state jackpot activity and the current worsening macroeconomic environment, the Company now expects revenue of approximately $2.55 billion and 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.

The Company provides guidance of select information related to its financial and operating performance, and such measures may differ from year to year. The guidance is only an estimate of what the Company believes is realizable as of the date of this release. Actual results will vary from the guidance and the variations may be material. The Company undertakes no intent or obligation to publicly update or revise any of these projections, whether as a result of new information, future events or otherwise, except as required by law.

A reconciliation of the Company's forward-looking non-GAAP financial measures to the most directly comparable GAAP financial measure cannot be provided without unreasonable effort. This is due to the inherent difficulty of accurately forecasting the occurrence and financial impact of the adjusting items necessary for such a reconciliation to be prepared, for example, the provision for income taxes or net foreign exchange gain/loss, as such items have not yet occurred, are out of the Company's control, or cannot be reasonably predicted.

Contact:
Phil O’Shaughnessy, Global Communications, toll free in U.S./Canada +1 (844) IGT-7452; outside U.S./Canada +1 (775) 448-0257
Matteo Selva, Italian media inquiries, +39 366 6803635
James Hurley, Investor Relations, +1 (401) 392-7190
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Select Performance and KPI data: ($ in millions, unless otherwise noted)
Constant
Q1'25 Q1'24 Currency
Revenue Y/Y Change
Change(1)
Service
Instant ticket & draw wager-based revenue 500 514 (3)% (1)%
U.S. multi-state jackpot wager-based revenue 17 31 (46)% (46)%
Upfront license fee amortization (48) (50) 3% —%
Other 89 124 (28)% (25)%
Total service revenue 557 619 (10)% (8)%
Product sales 26 42 (39)% (35)%
Total revenue 583 661 (12)% (10)%
Income from continuing operations 8 116 (93)%
Operating income 138 219 (37)% (35)%
Adjusted EBITDA(1)
250 327 (24)% (22)%
Same-store sales growth (%) at constant currency (wager-based growth) (2)
Global
Instant ticket & draw games (0.1  %) (3) (0.2  %)
U.S. multi-state jackpots (46.1  %) (0.8  %)
Total (3.8  %) (0.3  %)
U.S.
Instant ticket & draw games (1.3  %) (3) (2.6  %)
U.S. multi-state jackpots (46.1  %) (0.8  %)
Total (6.9  %) (2.4  %)
Italy
Instant ticket & draw games (0.7  %) (3) 4.4  %
Rest of world
Instant ticket & draw games 5.2  % (3) 2.6  %
(1) Non-GAAP measure; see disclaimer on page 4 and reconciliations to the most directly comparable GAAP measure in Appendix for further details
(2) Same-store sales represents the change in wagers recorded in lottery jurisdictions where IGT is the operator or facilities management supplier, using the same lottery jurisdictions and perimeter for comparisons between periods

(3)Global instant ticket & draw games same-store sales normalized for leap year in the U.S. and Rest of world in 2024 and like number of sell-in days and Lotto draws in Italy were +1.4%, with U.S. -0.2%, Italy +2.0%, and Rest of world 6.4%
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Constant
Q1'25 Q1'24 Currency
Y/Y Change
Change(1)
Same-store revenue growth (%) at constant currency (Same-store sales inclusive of contract mix) (2)
Global
Instant ticket & draw games (0.7)% 1.5%
U.S. multi-state jackpots (46.4)% (0.9)%
Total (3.3)% 1.4%
U.S.
Instant ticket & draw games (1.6)% (2.6)%
U.S. multi-state jackpots (46.4)% (0.9)%
Total (8.0)% (2.3)%
Italy
Instant ticket & draw games (1.0)% 4.8%
Rest of world
Instant ticket & draw games 5.1% (0.6)%
Revenue (by geography)
U.S. & Canada 259 322 (20)% (19)%
Italy 246 254 (3)% (1)%
Rest of world 79 85 (7)% (3)%
Total revenue 583 661 (12)% (10)%
(1) Non-GAAP measure; see disclaimer on page 4 and reconciliations to the most directly comparable GAAP measure in Appendix for further details
(2) Same-store revenue represents the change in same-store sales net of contract mix

8



International Game Technology PLC
Consolidated Statements of Operations
($ and shares in millions, except per share amounts)
Unaudited
For the three months ended
March 31,
2025 2024
Service revenue 557  619 
Product sales 26  42 
Total revenue 583  661 
Cost of services 305  304 
Cost of product sales 22  26 
Selling, general and administrative 104  102 
Research and development 11  11 
Other operating expense, net — 
Total operating expenses 445  443 
Operating income 138  219 
Interest expense, net 46  53 
Foreign exchange loss (gain), net 33  (11)
Other non-operating expense, net
Total non-operating expenses 82  46 
Income from continuing operations before provision for income taxes 56  173 
Provision for income taxes 48  57 
Income from continuing operations 116 
Income from discontinued operations, net of tax 52  13 
Net income 60  128 
Less: Net income attributable to non-controlling interests from continuing operations 31  45 
Less: Net income attributable to non-controlling interests from discontinued operations
Net income attributable to IGT PLC 27  82 
Net (loss) income from continuing operations attributable to IGT PLC per common share - basic (0.11) 0.35 
Net (loss) income from continuing operations attributable to IGT PLC per common share - diluted (0.11) 0.35 
Net income attributable to IGT PLC per common share - basic 0.13  0.41 
Net income attributable to IGT PLC per common share - diluted 0.13  0.40 
Weighted-average shares - basic 202  200 
Weighted-average shares - diluted 202  203 
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International Game Technology PLC
Consolidated Balance Sheets
($ in millions)
Unaudited
March 31, December 31,
2025 2024
Assets
Current assets:
Cash and cash equivalents 631  584 
Restricted cash and cash equivalents 108  120 
Trade and other receivables, net 432  468 
Inventories, net 113  113 
Other current assets 124  114 
Assets held for sale 4,806  4,765 
Total current assets 6,215  6,165 
Systems, equipment and other assets related to contracts, net 607  581 
Property, plant and equipment, net 88  85 
Operating lease right-of-use assets 99  102 
Goodwill 2,668  2,650 
Intangible assets, net 86  89 
Other non-current assets 578  606 
Total non-current assets 4,126  4,113 
Total assets 10,340  10,278 
Liabilities and shareholders' equity
Current liabilities:
Accounts payable 688  718 
Current portion of long-term debt 216  208 
Other current liabilities 602  619 
Liabilities held for sale 1,003  1,142 
Total current liabilities 2,510  2,687 
Long-term debt, less current portion 5,463  5,153 
Deferred income taxes 167  170 
Operating lease liabilities 80  83 
Other non-current liabilities 127  125 
Total non-current liabilities 5,836  5,530 
Total liabilities 8,346  8,217 
Commitments and contingencies
IGT PLC’s shareholders’ equity 1,642  1,652 
Non-controlling interests 353  409 
Shareholders’ equity 1,994  2,061 
Total liabilities and shareholders’ equity 10,340  10,278 
10



International Game Technology PLC
Consolidated Statements of Cash Flows
($ in millions)
Unaudited
For the three months ended
March 31,
2025 2024
Cash flows from operating activities
Net income 60 128
Less: Income from discontinued operations, net of tax 52 13
Adjustments to reconcile net income to net cash provided by operating activities from continuing operations:
Amortization of upfront license fees 48 50
Depreciation 45 41
Foreign exchange loss (gain), net 33 (11)
Amortization 9 8
Stock-based compensation 7 9
Deferred income taxes (18) 5
Other non-cash items, net 6 4
Changes in operating assets and liabilities, excluding the effects of dispositions:
Trade and other receivables 51 (45)
Inventories 1 (2)
Accounts payable (54) (25)
Accrued interest payable (25) (37)
Accrued income taxes 56 6
Other assets and liabilities 1 (53)
Net cash provided by operating activities from continuing operations 168 65
Net cash provided by operating activities from discontinued operations 55 55
Net cash provided by operating activities 224 120
Cash flows from investing activities
Capital expenditures (76) (35)
Other (2) (2)
Net cash used in investing activities from continuing operations (78) (37)
Net cash used in investing activities from discontinued operations (39) (46)
Net cash used in investing activities (116) (83)
Cash flows from financing activities
Proceeds from long-term debt 540
Net payments of short-term borrowings (9)
Net payments on financial liabilities (77) (63)
Net repayments of Revolving Credit Facilities (130) (72)
Principal payments on long-term debt (208)
Dividends paid (40)
Dividends paid - non-controlling interests (11) (100)
Return of capital - non-controlling interests (10)
Other (19) 1
Net cash provided by (used in) financing activities from continuing operations 54 (253)
Net cash used in financing activities from discontinued operations (133) (9)
Net cash used in financing activities (79) (262)
Net increase (decrease) in cash and cash equivalents and restricted cash and cash equivalents 29 (225)
Effect of exchange rate changes on cash and cash equivalents and restricted cash and cash equivalents 19 (18)
Cash and cash equivalents and restricted cash and cash equivalents at the beginning of the period 775 739
Cash and cash equivalents and restricted cash and cash equivalents at the end of the period 823 497
Less: Cash and cash equivalents and restricted cash and cash equivalents of discontinued operations 84 83
Cash and cash equivalents and restricted cash and cash equivalents at the end of the period of continuing operations 739 414
Supplemental disclosures of cash flow information for continuing operations:
Interest paid 72 91
Income taxes paid 9 46
11



International Game Technology PLC
Net Debt
($ in millions)
Unaudited
March 31, December 31,
2025 2024
4.125% Senior Secured U.S. Dollar Notes due April 2026 748  748 
3.500% Senior Secured Euro Notes due June 2026 810  777 
6.250% Senior Secured U.S. Dollar Notes due January 2027 748  748 
2.375% Senior Secured Euro Notes due April 2028 539  517 
5.250% Senior Secured U.S. Dollar Notes due January 2029 746  746 
4.250% Senior Secured Euro Notes due March 2030 534  513 
Senior Secured Notes 4,125  4,050 
Euro Term Loan Facilities due January 2027 428  619 
Euro Term Loan Facilities due September 2030 538  — 
Revolving Credit Facility A due July 2027 344  157 
Revolving Credit Facility B due July 2027 27  328 
Long-term debt, less current portion 5,463  5,153 
Euro Term Loan Facilities due January 2027 216  208 
Current portion of long-term debt 216  208 
Total debt 5,679  5,361 
Less: Cash and cash equivalents 631  584 
Less: Debt issuance costs, net - Euro Term Loan Facility due September 2030 — 
Net debt 5,047  4,777 
Note: Net debt is a non-GAAP financial measure
12



International Game Technology PLC
Reconciliation of Non-GAAP Financial Measures
(Unaudited, $ in millions, except per share amounts)


For the three months ended March 31,
2025 2024
Income from continuing operations 116 
Provision for income taxes 48  57 
Interest expense, net 46  53 
Foreign exchange loss (gain), net 33  (11)
Other non-operating expense, net
Operating income 138  219 
Depreciation 45  41 
Amortization - service revenue (1)
48  50 
Amortization - non-purchase accounting
Amortization - purchase accounting
Stock-based compensation
Other — 
Adjusted EBITDA 250  327 
Cash flows from operating activities - continuing operations 168  65 
Capital expenditures (76) (35)
Free Cash Flow 92  30 
For the three months ended March 31,
2025 2024
Pre-Tax Impact
Tax Impact (2)
Net Impact Pre-Tax Impact
Tax Impact (2)
Net Impact
Reported EPS from continuing operations attributable to IGT PLC - diluted (0.11) 0.35 
Adjustments:
Foreign exchange loss (gain), net 0.16  (0.02) 0.18  (0.06) 0.02  (0.08)
Amortization - purchase accounting 0.01  —  0.01  0.01  —  0.01 
Other (non-recurring adjustments) 0.01  —  0.01  —  —  — 
Net adjustments 0.20  (0.07)
Adjusted EPS from continuing operations attributable to IGT PLC - diluted 0.09  0.28 
Reported effective tax rate
85.3  % 33.1  %
Adjusted effective tax rate
47.8  % 38.2  %
Adjusted EPS weighted average shares outstanding (in millions)
204
(3)
203
(3)
(1) Includes amortization of upfront license fees
(2) Calculated based on nature of item, including any realizable deductions, and statutory tax rate in effect for the relevant jurisdiction
(3) Includes the dilutive impact of share-based payment awards
13

EX-99.2 3 q125earningsslidedeckfin.htm EX-99.2 q125earningsslidedeckfin
Period ended March 31, 2025 1


 
2 Cautionary Statement Regarding Forward-Looking Statements This presentation may contain forward-looking statements (including within the meaning of the Private Securities Litigation Reform Act of 1995) concerning International Game Technology PLC and its consolidated subsidiaries (the “Company”) and other matters, including with respect to the proposed sale of the Gaming & Digital business to funds managed by affiliates of Apollo Global Management, Inc. (the "Buyer"). These statements may discuss goals, intentions, and expectations as to future plans and strategies, expected growth, transactions, including the sale of Gaming & Digital to the Buyer and the use of proceeds therefrom, trends, events, dividends, results of operations, and/or financial condition or measures, including our expectations on future revenue, Adjusted EBITDA, cash from operations, and any other future financial performance guidance for continuing operations, based on current beliefs of the management of the Company as well as assumptions made by, and information currently available to, such management. Forward-looking statements may be accompanied by words such as “aim,” “anticipate,” “believe,” “plan,” “could,” “would,” “should,” “shall," “continue,” “estimate,” “expect,” “forecast,” “future,” “guidance,” “intend,” “may,” “will,” "outlook," “possible,” “potential,” “predict,” “project” or the negative or other variations of them. These forward-looking statements speak only as of the date on which such statements are made and are subject to various risks and uncertainties, many of which are outside the Company’s control. Should one or more of these risks or uncertainties materialize, or should any of the underlying assumptions prove incorrect, actual results may differ materially from those predicted in the forward-looking statements and from past results, performance, or achievements. Therefore, you should not place undue reliance on such statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include (but are not limited to) macroeconomic regulatory and political uncertainty, including as a result of new or increased tariffs, trade wars, and other restrictions on trade between or among countries in which the Company operates, and related changes in discretionary consumer spending and behavior, fluctuations in foreign currency exchange rates, and the other factors and risks described in the Company’s annual report on Form 20-F for the financial year ended December 31, 2024 and other documents filed or furnished from time to time with the SEC, which are available on the SEC’s website at www.sec.gov and on the investor relations section of the Company’s website at www.IGT.com. Except as required under applicable law, the Company does not assume any obligation to update these forward-looking statements. You should carefully consider these factors and other risks and uncertainties that may affect the Company’s business, including management's discussion and analysis of potential or actual impacts to operations and financial performance. Nothing in this news release is intended, or is to be construed, as a profit forecast or to be interpreted to mean that the financial performance of International Game Technology PLC for the current or any future financial years will necessarily match or exceed the historical published financial performance of International Game Technology PLC, as applicable. All forward-looking statements contained in this news release are qualified in their entirety by this cautionary statement. All subsequent written or oral forward-looking statements attributable to International Game Technology PLC, or persons acting on its behalf, are expressly qualified in their entirety by this cautionary statement. Comparability of Results All figures presented in this presentation are prepared under U.S. GAAP, unless noted otherwise. Non-GAAP Financial Measures Management supplements the reporting of financial information, determined under GAAP, with certain non-GAAP financial information. Management believes the non-GAAP information presented provides investors with additional useful information, but it is not intended to, nor should it be considered in isolation or as a substitute for the related GAAP measures. Moreover, other companies may define non-GAAP measures differently, which limits the usefulness of these measures for comparisons with such other companies. The Company encourages investors to review its financial statements and publicly filed reports in their entirety and not to rely on any single financial measure. Adjusted EBITDA represents net income (loss) from continuing operations (a GAAP measure) before income taxes, interest expense, net, foreign exchange gain (loss), net, other non-operating expenses (e.g., gains/losses on extinguishment and modifications of debt, etc.), net, depreciation, impairment losses, amortization (service revenue, purchase accounting, and non-purchase accounting), restructuring expenses, stock-based compensation, litigation expense (income), and certain other non- recurring items. Other non-recurring items are infrequent in nature and are not reflective of ongoing operational activities. Adjusted EBITDA margin represents Adjusted EBITDA divided by revenue. Adjusted EPS represents diluted earnings per share (a GAAP measure), excluding the effects of foreign exchange, impairments, amortization from purchase accounting, discrete tax items, and other significant non-recurring adjustments that are not reflective of on-going operational activities (e.g., gains/losses on sale of business, gains/losses on extinguishment and modifications of debt, etc.). Adjusted EPS is calculated using diluted weighted-average number of shares outstanding, including the impact of any potentially dilutive common stock equivalents that are anti-dilutive to GAAP net income (loss) per share but dilutive to Adjusted EPS. Management believes that Adjusted EPS is useful in providing period-to-period comparisons of the results of the Company's ongoing operational performance. Net debt is a non-GAAP financial measure that represents debt (a GAAP measure, calculated as long-term obligations plus short-term borrowings) minus capitalized debt issuance costs and cash and cash equivalents, including cash and cash equivalents held for sale. Cash and cash equivalents, including cash and cash equivalents classified as held for sale, are subtracted from the GAAP measure because they could be used to reduce the Company’s debt obligations. Management believes that net debt is a useful measure to monitor leverage and evaluate the balance sheet. Net debt leverage is a non-GAAP financial measure that represents the ratio of Net debt as of a particular balance sheet date to Adjusted EBITDA for the last twelve months (“LTM”) prior to such date. Management believes that net debt leverage is a useful measure to assess IGT's financial strength and ability to incur incremental indebtedness when making key investment decisions. Free cash flow is a non-GAAP financial measure that represents cash flow from operations (a GAAP measure) less capital expenditures. Management believes free cash flow is a useful measure of liquidity and an additional basis for assessing IGT’s ability to fund its activities, including debt service and distribution of earnings to shareholders. Constant currency is a non-GAAP adjustment to certain financial measures that expresses the current financial data using the prior-year/period exchange rate (i.e., the exchange rate used in preparing the financial statements for the prior year). Management believes that constant currency is a useful measure to compare period-to-period results without regard to the impact of fluctuating foreign currency exchange rates. A reconciliation of the non-GAAP measures to the corresponding amounts prepared in accordance with GAAP appears in the tables in this release. The tables provide additional information as to the items and amounts that have been excluded from the adjusted measures. Full Year 2025 Outlook and Guidance Policy Given lower U.S. multi-state jackpot activity and the current worsening macroeconomic environment, the Company now expects revenue of approximately $2.55 billion and 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. The Company provides guidance of select information related to its financial and operating performance, and such measures may differ from year to year. The guidance is only an estimate of what the Company believes is realizable as of the date of this release. Actual results will vary from the guidance and the variations may be material. The Company undertakes no intent or obligation to publicly update or revise any of these projections, whether as a result of new information, future events or otherwise, except as required by law. A reconciliation of our forward-looking non-GAAP financial measures to the most directly comparable GAAP financial measure cannot be provided without unreasonable effort. This is due to the inherent difficulty of accurately forecasting the occurrence and financial impact of the adjusting items necessary for such a reconciliation to be prepared, for example, the provision for income taxes or net foreign gain/loss, as such items have not yet occurred, are out of our control, or cannot be reasonably predicted.


 
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Q1’25 Results Confirm Sustained Player Demand for Instants & Draw Games (1) U.S. and Rest of world normalized for leap year in 2024; Italy normalized for a like number of sell-in days and Lotto draws Y/Y comparisons reflect U.S. MSJP/LMA impacts & calendar shifts Global instant ticket & draw game same-store sales up 1.4%, normalized for calendar shifts(1) Significantly lower U.S. multi-state jackpot sales and associated LMA incentives, as expected iLottery wagers up 25+% on double-digit growth across geographies Attractive & resilient profit structure of pure play lottery business Strong cash conversion & financial condition 4


 
Same-store Sales (SSS) Q1’25 as Reported U.S. Instants & Draw Multi-state Jackpots (6.9%) (1.3%) (46.1%) Italy (0.7%) Rest of World 5.2% Total Instants & Draw Multi-state Jackpots (3.8%) (0.1%) (46.1%) Game Innovation Drives Underlying Growth in Same-store Sales for Instants & Draw Games 5 *Gross wagers represents wagers recorded in lottery jurisdictions where IGT is the operator or facilities management supplier (1) U.S. and Rest of world normalized for leap year in 2024; Italy normalized for a like number of sell-in days and Lotto draws Q1'24 Q1'25 U.S. Multi-state Jackpots Draw Games Instant Tickets 26,052 $ in millions 27,229 U.S. -0.2% Italy 2.0% Normalized(1) Instants & Draw SSS Gross Wagers* by Game Type U.S. Multi-State Jackpots Dra Games Instant Tickets Global 1.4% Rest of world 6.4%


 
Expanding Retail Touch Points & POS Network OptimizationProduct Innovation Good Progress in Key Areas of Strategic Focus to Drive Sustainable Long-term Growth 6 FPO Increasing iLottery AdoptionGrowing Instant Ticket Services


 
Lottery Sales Historically Resilient in Times of Macroeconomic Uncertainty 7 March 2001– Sep 2001 March 2008–June 2009 March 2020– June 2020 0 20 40 60 80 100 Instant Other Draw Keno Multi-state Games Recession June 2001 - Dec 2001 June 2003 – Sep 2003 June 2008 - June 2009 Sep 2011- March 2013 Dec 2019 - June 2020 0 5 10 15 20 25 Lotto Scratch & Win Recession U.S. Lottery Industry Sales ($B) IGT Italy Lottery Sales (€B)


 
8 Important Milestones on the Horizon Italy Lotto Tender Process Underway Gaming & Digital Sale on Track for Q3’25 Closing Capital Allocation Strategy to be Communicated Post-Lotto Outcome & Around Gaming & Digital Closing


 
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Q1’25 Profit In Line with Expectations Note: EUR/USD FX daily average 1.05 in Q1’25, 1.09 in Q1’24 Amounts in millions unless otherwise noted *Non-GAAP measure; see disclaimer on page 2 and reconciliations to the most directly comparable GAAP measures in Appendix for further details 10 Lottery business demonstrated profit resilience vs. outlook despite lower-than-expected revenue from incremental MSJP/LMA headwinds & shift in product sales timing within the year


 
322 261 259 254 252 246 85 82 79Calendar shifts account for -$9M Q1’24 Instant Ticket & Draw U.S. Multi-state Jackpots Other Service & Upfront License Fee Amortization Product Sales Excluding FX FX Q1’25 661 595 583 Calendar Shifts & Expected U.S. MSJP/LMA Dynamics Mask Underlying Resilient Trends for Instants & Draw Games 11 Amounts in $ millions, unless otherwise noted RoW Italy U.S. & Canada Revenue -5 -14 -31 -15 -12 $1.1B Mega Millions & ~$950M Powerball jackpots in PY U.S. MSJP & LMA incentive revenue highly dependent on timing of very large jackpots +$4M net of calendar shifts


 
Profit Performance As Expected; U.S. MSJP/LMA & Product Sales Mix Impact Y/Y Comparison 116 8 Q1’24 Operating Income Interest Expense FX Tax Provision Q1’25 327 256 250 -41 U.S. MSJP & LMA Q1’24 Service Margin Product Sales Margin SG&A R&D Excluding FX FX Q1’25 17.5% 49.5% 42.8%1.4% Adjusted EBITDAIncome from Continuing Operations -51 -13 -6 -2 -6 Margins Margins Amounts in $ millions, unless otherwise noted 12 -80 8 -44 9 Non-cash EUR/USD rate impact on debt Q1’25 includes incremental investments to drive long-term, sustainable growth & expense associated with Lottery rebranding Higher volume & margin mix in PY


 
Strong Cash Generation; Ample Liquidity to Fund Lotto License Fee Note: cash flow results reflect continuing operations *Non-GAAP measure; see disclaimer on page 2 and reconciliations to the most directly comparable GAAP measures in Appendix for further details $168M Cash from Operations $92M Free Cash Flow* $76M CapEx Proactive issuance of €1B Term Loan €500M drawn & used for repayment of borrowings under credit facilities €500M committed but undrawn; to be utilized if awarded Italy Lotto license $4.05B cash infusion upon closing of Gaming & Digital sale transaction Significant liquidity of $2.2B $0.6B in unrestricted cash and $1.5B in additional borrowing capacity from undrawn credit facilities Not including additional €500M in committed but undrawn term loan Net Debt as of March 31, 2025 5,047 3,047 Pro forma for $2B debt repayment 2.8x As Reported Pro forma net debt leverage 13


 
FY’25 Outlook *A reconciliation of our forward-looking non-GAAP financial measures to the most directly comparable GAAP financial measure cannot be provided without unreasonable effort. This is due to the inherent difficulty of accurately forecasting the occurrence and financial impact of the adjusting items necessary for such a reconciliation to be prepared, for example, the provision for income taxes or net foreign exchange gain/loss, as such items have not yet occurred, are out of our control, or cannot be reasonably predicted. 14 1Reflects 100% consolidation of Italy joint venture; minority partner contributions representing their pro rata share are recorded in cash flows from financing activities Revenue Adjusted EBITDA* ~$2.55B ~$1.10B Cash from Operations ~($350M) CapEx ~$450M Moving revenue & Adjusted EBITDA outlook to low end of previous ranges given lower U.S. multi-state jackpot activity & current worsening macroeconomic environment Revenue and Adjusted EBITDA reflect flow-through of U.S. MSJP/LMA impacts in H1’25 Cash from operations includes €800M (~$900M) related to first two installments of Italy Lotto upfront license fee1 CapEx reflects increased investments related to large contract wins, extensions & upcoming bids


 
Growth & Resilience of Player Demand for Instant Ticket & Draw Games 15 Well-positioned for Future; Strong Financial Profile & Historically Resilient Business Model Investing in the Future to Drive Sustainable Long-term Growth Strong Balance Sheet & Ample Liquidity


 
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U.S. Multi-state Jackpots & Related LMA Contract Impacts on Sales & Profits 18 Higher incentive or penalty recognition typically in IGT’s H1 period as U.S. LMA customer fiscal YTD activity, including impact of multi- state jackpots, increases likelihood of achieving target level 1.0 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 U.S. Multi-state Jackpots Over $1B ($ billion) Powerball Mega Millions Q1’23 Q2’23 Q3’23 Q4’23 Q1’24 Q2’24 Q3’24 Q4’24 Q1’25 Q2’25 Only one $1B+ jackpot in U.S. LMA customer FY’25-to-date Five $1B+ jackpots in U.S. LMA customer FY’24 Revenue & profit from U.S. multi-state jackpot sales is recognized in “real time” LMA contracts provide for potential incentives or penalties based on the achievement of certain annual targets Quarterly incentive or penalty amounts are recognized based on confidence in achieving full-year targets Higher incentive or penalty amounts are typically recognized later in the LMA customer fiscal year, which is the first half of IGT’s fiscal year* Incentive or penalty is recognized in “Other” service revenue Recognition of incentive or penalty is highly sensitive to U.S. multi-state jackpot activity *LMA customers in IN & NJ have July-June fiscal year; IGT’s fiscal year is January-December


 
94% 6% Service Product Sales 49% 38% 13% U.S. & Canada Italy Rest of world 11% 27% 47% Income from continuing operations Operating income Adjusted EBITDA Revenue by Type Revenue by Geography Profit Margins FY’24 Revenue & Profit Profile – Continuing Operations 19 Wager-based Revenue by Game Type 95% 5% Instant Ticket & Draw U.S. Multi-state Jackpots


 
$ in millions except otherwise noted (1) Same-store sales represent the change in wagers recorded in lottery jurisdictions where IGT is the operator or facilities management supplier, using the same lottery jurisdictions and perimeter for comparisons between periods; Global instant ticket & draw games same-store sales normalized for leap year in the U.S. in 2024 and like number of sell-in days and Lotto draws in Italy were +1.4%, with U.S. -0.2%, and Italy +2.0% Q1'25 Select Performance and KPI Data For the three months ended March 31, Constant Q1'25 Q1'24 Y/Y Change Currency Change Revenue Service Instant ticket & draw wager-based revenue 500 514 (3)% (1)% U.S. multi-state jackpot wager-based revenue 17 31 (46)% (46)% Upfront license fee amortization (48) (50) 3% —% Other 89 124 (28)% (25)% Total service revenue 557 619 (10)% (8)% Product sales 26 42 (39)% (35)% Total revenue 583 661 (12)% (10)% Income from continuing operations 8 116 (93)% Operating income 138 219 (37)% (35)% Adjusted EBITDA 250 327 (24)% (22)% Same-store sales growth (%) at constant currency Q1'25 Constant Q1'24 Constant (wager-based growth)(1) Currency Change Currency Change Global Instant ticket & draw games (0.1)% (0.2)% U.S. multi-state jackpots (46.1)% (0.8)% Total (3.8)% (0.3)% U.S. Instant ticket & draw games (1.3)% (2.6)% U.S. multi-state jackpots (46.1)% (0.8)% Total (6.9)% (2.4)% Italy Instant ticket & draw games (0.7)% 4.4% Rest of world Instant ticket & draw games 5.2% 2.6% 20


 
Q1'25 Select Performance and KPI Data $ in millions except otherwise noted (1) Same-store revenue represents the change in same-store sales net of contract mix Same-store revenue growth (%) at constant currency (SSS growth plus impact of contract mix) (1) Q1'25 Constant Currency Change Q1'24 Constant Currency Change Global Instant ticket & draw games (0.7)% 1.5% U.S. multi-state jackpots (46.4)% (0.9)% Total (3.3)% 1.4% U.S. Instant ticket & draw games (1.6)% (2.6)% U.S. multi-state jackpots (46.4)% (0.9)% Total (8.0)% (2.3)% Italy Instant ticket & draw games (1.0)% 4.8% Rest of world Instant ticket & draw games 5.1% (0.6)% Constant CONSOLIDATED Q1'25 Q1'24 Y/Y Change Currency Change Revenue (by geography) U.S. & Canada 259 322 (20)% (19)% Italy 246 254 (3)% (1)% Rest of world 79 85 (7)% (3)% Total revenue 583 661 (12)% (10)% 21


 
Q1'25 Summarized Income Statement All amounts from continuing operations For the three months ended March 31, Q1'25 Q1'24 Y/Y Change Service revenue 557 619 (10)% Product sales 26 42 (39)% Total revenue 583 661 (12)% Total operating expenses 445 443 —% Operating income 138 219 (37)% Interest expense, net 46 53 Foreign exchange loss (gain), net 33 (11) Other non-operating expense, net 4 4 Total non-operating expenses 82 46 Income before provision for income taxes 56 173 Provision for income taxes 48 57 Income from continuing operations 8 116 Income from discontinued operations, net of tax 52 13 Net income 60 128 Less: Net income attributable to non-controlling interests 31 45 Less: Net income attributable to non-controlling interests from discontinued operations 2 2 Net income attributable to IGT PLC 27 82 Net (loss) income from continuing operations attributable to IGT PLC per common share - diluted $(0.11) $0.35 Adjusted net income attributable to IGT PLC per common share - diluted $0.09 $0.28 $ in millions except otherwise noted 22


 
For the three months ended March 31, 2025 2024 Net cash provided by operating activities from continuing operations 168 65 Capital expenditures (76) (35) Free Cash Flow 92 30 Cash flow provided by discontinued operations (116) — Debt Proceeds / (Repayment), Net 202 (81) Shareholder dividends paid (40) — Minority distributions (11) (109) Other - Net (98) (65) Other Investing / Financing Activities (64) (255) Net Cash Flow 29 (225) Effect of Exchange Rates/Other 19 (18) Net Change in Cash and Restricted Cash 48 (243) $ in millions Q1'25 Summarized Cash Flow Statement 23


 
For the three months ended March 31, 2025 2024 Income from continuing operations 8 116 Provision for income taxes 48 57 Interest expense, net 46 53 Foreign exchange loss (gain), net 33 (11) Other non-operating expense, net 4 4 Operating income 138 219 Depreciation 45 41 Amortization - service revenue (1) 48 50 Amortization - non-purchase accounting 7 6 Amortization - purchase accounting 2 3 Stock-based compensation 7 9 Other 3 — Adjusted EBITDA 250 327 Cash flows from operating activities - continuing operations 168 65 Capital expenditures (76) (35) Free Cash Flow 92 30 $ in millions (1) Includes amortization of upfront license fees Reconciliation of Non-GAAP Financial Measures 24


 
For the three months ended March 31, For the three months ended March 31, All amounts from continuing operations 2025 2024 Pre-Tax Impact Tax Impact (1) Net Impact Pre-Tax Impact Tax Impact (1) Net Impact Reported EPS from continuing operations attributable to IGT PLC - diluted (0.11) 0.35 Adjustments: Foreign exchange loss (gain), net 0.16 (0.02) 0.18 (0.06) 0.02 (0.08) Amortization - purchase accounting 0.01 — 0.01 0.01 — 0.01 Other (non-recurring adjustments) 0.01 — 0.01 — — — Net adjustments 0.20 (0.07) Adjusted EPS attributable to IGT PLC - diluted 0.09 0.28 Reported effective tax rate 85.3 % 33.1 % Adjusted effective tax rate 47.8 % 38.2 % Adjusted EPS weighted average shares outstanding (in millions) 204 (2) 203 (2) Reconciliation of Non-GAAP Financial Measures All amounts presented are in $ (1) Calculated based on nature of item, including any realizable deductions, and statutory tax rate in effect for the relevant jurisdiction (2) Includes the dilutive impact of share-based payment awards 25