IGT, the London-based gambling company posted revenue of $1 billion in Q2 2024, mirroring the results it posted in the same period last year.
IGT’s Q2 2024 revenue was driven by its Global Lottery segment, which reported revenue of $613 million in the quarter. By comparison, IGT’s lottery business revenue reached $624 million in Q2 2023. In addition to the revenue decline, IGT reported zero revenue in the second quarter for its gaming and digital segment, which has been a hot topic of discussion in the gaming industry in recent weeks. IGT’s gaming and digital business generated $436 million in revenue in Q2 2024, down from $432 million in the same period in 2023.
Last week, Apollo Global Management agreed to acquire IGT’s Gaming & Digital and Everi businesses in a deal valued at $6.3 billion. IGT is spinning off the businesses and Everi to a new holding company for asset manager Apollo Funds following a strategic review. The review prompted IGT to consider spinning off its Gaming & Digital businesses into a taxable shareholder unit, with the company selling IGT Gaming and Everi to Apollo Funds.
IGT CEO Vince Sadusky said:
This simple and straightforward transaction provides a clear separation of the global lottery business from gaming and digital for IGT shareholders. There is a significant cash accretion of nearly $1.5 billion, providing faster value realization post-close, thereby eliminating IGT shareholders’ exposure to execution risk with respect to integration efforts and synergies.
IGT made an effort to strengthen its lottery business in the second quarter by securing a three-year contract extension with the Mississippi Lottery Corporation. As part of the deal, IGT will continue to provide online gaming systems and instant ticket services in the state through 2029.
The company also secured a contract with the Colorado Lottery. IGT will replace the state’s current central system with its Aurora system as part of its seven-year agreement.
IGT reported operating income of $230 million in the second quarter of 2024, down 8% from the prior year. As of June 30, IGT had $1.7 billion in total liquidity. The company is withdrawing its previously announced full-year 2024 revenue guidance amid the upcoming sale of Apollo Funds.
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