"2024 was a year of momentous transformation with the conclusion of our strategic review and the announced sale of our Gaming & Digital business for $4.05 billion in cash," said Vince Sadusky, CEO of IGT. "Our unmatched capabilities in developing world-class Lottery solutions and innovative game content support several important investments to drive long-term growth and shareholder returns. We are well-positioned to continue strengthening our global lottery leadership."

"We delivered solid financial results in 2024, including robust cash flow generation to invest in the business, reduce debt, and return capital to shareholders," said Max Chiara, CFO of IGT. "Our core, recurring business has a compelling low-to-mid single digit growth profile and provides a solid foundation as we head into our next CapEx cycle aimed at securing our portfolio and extending its duration to more than eight years."

Select 2024 & Recent Key Highlights

• Announced $4.05 billion sale of Gaming & Digital business to funds managed by affiliates of Apollo Global Management, Inc.; expected to close by the end of the third quarter of 2025
• Awarded seven-year facilities management contract with Colorado Lottery; recently executed 10-year Lottery and iLottery contract in Luxembourg
• Executed meaningful Lottery facilities management contract extensions, including nine years with Tennessee Education Lottery, 10 years with North Carolina Education Lottery, 12 years in Lithuania, and three years in Mississippi and Virginia; recently awarded seven-year extension in Germany
• Momentum in securing instant ticket service contracts with three-year primary printing contract in Portugal, five-year award in Spain, and three-year extension with FDJ in France

Fourth Quarter 2024 Financial Highlights
Revenue of $651 million, down 4% compared to $681 million in the prior-year period, mainly due to comparisons with record product sales revenue in the prior year; current year period represents the second highest quarter for product sales revenue in Company history

• Strong instant ticket and draw game same-store sales growth across jurisdictions; Italy up 7.0%, 3.9% normalized for same number of selling days
• Elevated U.S. Multi-state Jackpot activity in the prior year inclusive of LMA incentive impact (which is recognized in Other service revenue)
• Higher central system software license, terminal, and instant ticket services in the prior year
• Negative impact of foreign currency rates

Operating income of $179 million compared to $197 million in the prior year, primarily driven by the items affecting Adjusted EBITDA as noted below, partially offset by lower restructuring costs

Income from continuing operations of $116 million versus $73 million in the prior-year period; income from continuing operations margin of 17.9% compared to 10.7% in the prior year

• Improvement in net interest expense primarily due to lower average borrowings on committed bank facilities and the refinancing of a senior-secured note at a lower coupon
• Foreign exchange gain versus foreign exchange loss in the prior year, primarily reflecting the non-cash impact of fluctuations in the EUR/USD exchange rate on debt
• Increased provision for income taxes primarily driven by higher pre-tax income and a discrete tax item, partially offset by foreign exchange gains that are taxable in a low-tax jurisdiction in the current year versus the impact of non-deductible foreign exchange losses in the prior year

Adjusted EBITDA of $290 million versus $316 million in the prior year; Adjusted EBITDA margin of 44.5% compared to 46.4% in the prior-year period

• High profit flow through from same-store sales growth offsets elevated U.S. Multi-state Jackpot activity in the prior year and increased investments in the business including personnel costs and project costs supporting contract renewal and extension activity in the current year
• Elevated product sales and more favorable product mix in the prior year
• Negative impact of foreign currency rates

Diluted earnings per share of $0.40, versus $0.19 in the prior year primarily driven by the after-tax impact of foreign currency gains versus foreign currency losses in the prior year, partially offset by a higher effective tax rate; Adjusted diluted earnings per share of $0.22 versus $0.54 in the prior year driven by lower operating income and higher provision for income taxes

Full Year 2024 Financial Highlights
Revenue of $2.5 billion, in line with the prior-year period

• Strong same-store sales growth led by a 4.1% increase in Italy
• Elevated U.S. Multi-state Jackpot activity in the prior year inclusive of LMA incentive impact (which is recognized in Other service revenue)
• Increased other service revenue related to non-wager-based service contracts in Europe
• Multi-year central system software license and higher terminal sales in the prior year, partially offset by higher instant ticket services in the current year
• Negative impact of foreign currency rates

Operating income of $686 million versus $752 million in the prior-year period, primarily driven by the items affecting Adjusted EBITDA as noted below, and higher restructuring costs

Income from continuing operations of $271 million compared to $265 million in the prior-year period; income from continuing operations margin of 10.8% compared to 10.5% in the prior year

• Foreign exchange gain versus foreign exchange loss in the prior-year period, principally related to the impact of fluctuations in the EUR/USD exchange rate on debt
• Increased provision for income taxes primarily driven by higher pre-tax income and a discrete tax item, partially offset by foreign exchange gains that are taxable in a low-tax jurisdiction in the current year versus the impact of non-deductible foreign exchange losses in the prior year

Adjusted EBITDA of $1.17 billion compared to $1.21 billion in the prior-year period; Adjusted EBITDA margin of 46.6% versus 48.0% in the prior year

• Italy same-store sales growth offset by U.S. multi-state jackpot activity in the prior year and increased investments in the business including personnel costs and project costs supporting contract renewal and extension activity in the current year
• Elevated product sales and more favorable product mix in the prior year
• Lower legal costs partially offset by increased investment in cloud initiatives

Diluted earnings per share of $0.57, versus $0.57 in the prior year primarily driven by the after-tax impact of foreign currency gains versus foreign currency losses in the prior year, partially offset by a higher effective tax rate and restructuring costs; Adjusted diluted earnings per share of $0.67 compared to $0.95 driven by lower operating income and higher provision for income taxes

Consolidated cash from operations of $1.03 billion versus $1.04 billion in the prior-year period; cash from operations from continuing operations of $689 million compared to $916 million in the prior-year period primarily related to the timing of tax payments

Net debt of $4.8 billion versus $5.2 billion at December 31, 2023, including an approximate $140 million benefit from fluctuations in the EUR/USD exchange rate; net debt leverage of 2.4x pro forma for $2 billion committed debt reduction following the closing of the Gaming & Digital sale transaction

Cash and Liquidity Update
Total liquidity of $1.9 billion as of December 31, 2024; $584 million in unrestricted cash and $1.4 billion in additional borrowing capacity

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

• Record date of March 11, 2025
• Payment date of March 25, 2025

Introducing Full Year 2025 Expectations
Strong, core recurring business provides solid foundation for 2025:

• Revenue of $2.55 - $2.65 billion, up low-mid single digits
  • Global same-store sales up low-single-digits
  • Higher product sales, driven by sustainable instant ticket services growth
  • H1'25 impacted by an estimated $40 - $50 million from lower U.S. Multi-state Jackpot activity and associated LMA incentives, accounting for lower expected revenue in Q1'25 versus Q1'24
• Adjusted EBITDA of $1.10 - $1.15 billion
  • Flow-through of lower U.S. Multi-state Jackpot activity and associated LMA incentives referenced above
  • $25 million of increased investment in the business (contract rebids and extensions, cloud-based solutions, network optimization), which are mostly concentrated in H1'25 and are expected to deliver future capital expenditure efficiencies
  • Q1'25 Adjusted EBITDA down approximately $70 million, primarily on lower U.S. Multi-state Jackpot activity and associated LMA incentives, in addition to unfavorable product mix and investment in the business; in the balance of the year, Adjusted EBITDA is aligned with the prior year, including growth in H2'25
• Net cash used in operating activities of approximately $300 million
  • Includes €800 million (approximately $850 million) related to first two installments of Italy Lotto upfront license fee (reflects 100% consolidation of Italy joint venture; minority partner contributions representing their pro rata share are recorded in cash flows from financing activities)
  • Ex-Lotto license fee and compared to FY'24, cash flow performance impacted approximately one-third by the lower forecasted Adjusted EBITDA and two-thirds by the timing of certain working capital items
• Capital expenditures of approximately $450 million; reflects increased investments related to contract wins, extensions, and upcoming bids

Earnings Conference Call and Webcast
February 25, 2025, 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.

Comparability of Results
All figures presented in this 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.