"Broad-based momentum across our Lottery, Gaming, and Digital & Betting activities drove significant improvement in key financial and performance metrics in the third quarter," said Marco Sala, CEO of IGT. "Revenue grew over 20% and operating income more than doubled, highlighting the strength of our portfolio. Based on our excellent year-to-date results and our solid financial condition, the Board reinstated a quarterly cash dividend, signaling their confidence in the Company's prospects."

"We are supporting strong top-line growth with strategic investments in the business while still making good progress on optimizing our cost structure," said Max Chiara, CFO of IGT. "Achieving our goal of  reducing net debt leverage below 4.0x was a big accomplishment in the quarter. We look forward to sharing our strategy, long-term growth initiatives, and capital allocation plans during our upcoming investor day on November 16, 2021."

Key Highlights:

• Sustained player demand in Global Lottery propels strong results; profit and related margins remain among the strongest in segment history


• Global Gaming achieves highest quarterly revenue and profit levels in seven quarters as progressive recovery continues


• Digital & Betting rapidly gaining scale with significantly higher revenue and profit driven by new and existing markets


• Strong year-to-date operating cash flow of $613 million and free cash flow of $445 million


• Successfully amended and extended term loan facility, adding an ESG margin adjustment demonstrating IGT's commitment to sustainability


• Awarded 10-year lottery contract with Connecticut Lottery Corporation following a competitive procurement


• Recently signed seven-year contract with La Française des Jeux, operator of the French National Lottery, to upgrade its lottery central system to IGT's advanced Aurora™ platform featuring enhanced, omnichannel capabilities


• Strengthened Digital & Betting leadership with appointment of Joe Asher as President of Sports Betting and Gil Rotem as President of iGaming


• Announced several turnkey sports betting solutions, including full retail and mobile services for Angel Of The Winds Casino Resort, Oneida Casino, and Snoqualmie Casino


• Extended cashless momentum with agreements to deploy Resort Wallet™ and IGTPay™ at Agua Caliente Casino and Indigo Sky properties


• Won several industry awards, including:




• "Technology Provider of the Year" and "Lottery Product of the Year" at 2021 International Gaming Awards


• "Product Innovation of the Year" for Resort Wallet and IGTPay cashless technologies at 2021 Global Gaming Awards Las Vegas


• "Best Consumer-Service Technology" for CrystalFlex sports betting terminal at 2021 GGB Gaming & Technology Awards

Financial highlights:

Consolidated revenue of $984 million, up 21% compared to the prior year

• Global Lottery revenue rises 14% to $652 million, as sustained momentum drives 9% global same-store sales growth


• Global Gaming revenue of $289 million, up from $216 million in the prior year and $274 million sequentially as market recovery progresses


• Digital & Betting revenue increases 37% to $43 million, with double-digit growth across activities

Operating income of $212 million, up 144% from the prior year

• High profit flow-through of Global Lottery same-store sales growth


• Mix of high-margin Italy lottery sales


• Strong operating leverage across businesses


• Disciplined cost management and benefits from OPtiMa structural cost-savings program

Net interest expense of $79 million compared to $101 million in the prior year, driven by lower average debt balances and interest rates

Provision for income taxes of $37 million compared to a benefit from income taxes of $41 million in the prior year, on significant increase in operating profitability

Net income of $101 million versus net loss of $129 million in the prior-year period, driven by higher revenue and operating profit, and a reduction in foreign exchange losses

Adjusted EBITDA of $407 million compared to $287 million in the prior-year period; Adjusted EBITDA margin of 41%, among the highest level in Company history

Net debt of $6.1 billion, down $1.2 billion from $7.3 billion at December 31, 2020; Net debt leverage of 3.8x, down from 6.4x at December 31, 2020, driven by strong cash flow generation and proceeds from sale of Italy gaming businesses, including €100 million installment received during Q3'21

Cash and Liquidity Update

• Total liquidity of $2.2 billion as of September 30, 2021; $435 million in unrestricted cash and $1.8 billion in additional borrowing capacity


• Executed amendment and extension of Term Loan Facility




• Enhancing credit profile, increasing liquidity, and extending debt maturities


• Includes ESG margin adjustment, highlighting commitment to sustainability; achieved higher ESG rating in Q3'21, lowering borrowing costs

Other Developments
The Company's Board of Directors declared a quarterly cash dividend of $0.20 per common share

• Ex-dividend date of November 22, 2021


• Record date of November 23, 2021


• Payment date of December 7, 2021

Investor Day Details
IGT will host a virtual Investor Day on Tuesday, November 16, 2021, at 8:30 a.m. EST

• Senior management will present an in-depth review of the Company's business strategy, long-term growth prospects, and capital allocation plans


• A live webcast is available under "Events Calendar" on IGT's Investor Relations website at www.IGT.com


• Registration for the event is required and can be completed in advance


• A replay will also be available on the website following the call

Raising Full-year 2021 Outlook (Continuing operations)

• Revenue of ~$4.1 billion


• Updating operating income outlook to ~$900 million from ~$800 million


• Depreciation and amortization of ~$700 - $725 million


• Cash from operations of ~$850 - $900 million


• Capital expenditures below $300 million


• Does not factor in any additional impact from COVID-19 restrictions

Earnings Conference Call and Webcast  
November 9, 2021, at 8:00 a.m. EST

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.

Note: Certain totals in the tables included in this press release may not add due to rounding

Comparability of Results
All figures presented in this news release are prepared under U.S. GAAP, unless noted otherwise. Adjusted figures exclude the impact of items such as purchase accounting, impairment charges, restructuring expense, foreign exchange, and certain one-time, primarily transaction-related items. Reconciliations to the most directly comparable U.S. GAAP measures are included in the tables in this news release. Constant currency changes for 2021 are calculated using the same foreign exchange rates as the corresponding 2020 period. Management uses non-GAAP financial measures to understand and compare operating results across accounting periods, for internal budgeting and forecasting purposes, and to evaluate the Company's financial performance. Management believes these non-GAAP financial measures reflect the Company's ongoing business in a manner that allows for meaningful period-to-period comparisons and analysis of business trends. These constant currency changes and non-GAAP financial measures should however be viewed in addition to, and not as an alternative for, the Company's reported results prepared in accordance with U.S. GAAP. 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.