[Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This section provides cautionary forward-looking statements on future plans and financial performance, including the proposed IGT Gaming & Digital sale, noting potential deviations from expectations - The report includes forward-looking statements concerning future plans, strategies, growth, and financial conditions, which are subject to significant risks and uncertainties[7](index=7&type=chunk) - A major subject of these forward-looking statements is the proposed sale of the IGT Gaming & Digital business to a buyer owned by Apollo Funds[7](index=7&type=chunk) - Factors that could cause actual results to differ include macroeconomic uncertainty, trade restrictions, currency fluctuations, and other risks detailed in the company's Form 20-F[7](index=7&type=chunk) [PART I: FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) This section presents the unaudited condensed consolidated financial statements, management's discussion, market risk disclosures, and internal controls for the first quarter [Condensed Consolidated Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) This section presents the unaudited condensed consolidated financial statements for Q1 2025, including balance sheets, income, and cash flows, with the IGT Gaming business classified as discontinued operations [Financial Statements Overview](index=5&type=section&id=Financial%20Statements%20Overview) The company's Q1 2025 financial overview shows total assets of $10.34 billion, a revenue decline to $583 million, and increased net cash from operations Key Financial Data (Q1 2025 vs Q1 2024) | Metric | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | **Statement of Operations ($ in millions)** | | | | Total Revenue (Continuing Ops) | $583 | $661 | | Operating Income (Continuing Ops) | $138 | $219 | | Net Income Attributable to IGT PLC | $27 | $82 | | Diluted EPS Attributable to IGT PLC | $0.13 | $0.40 | | **Balance Sheet ($ in millions)** | **March 31, 2025** | **Dec 31, 2024** | | Total Assets | $10,340 | $10,278 | | Total Liabilities | $8,346 | $8,217 | | Total Shareholders' Equity | $1,994 | $2,061 | | **Cash Flow ($ in millions)** | **Q1 2025** | **Q1 2024** | | Net Cash from Operating Activities | $224 | $120 | [Note 3. Discontinued Operations and Assets Held for Sale](index=12&type=section&id=Note%203.%20Discontinued%20Operations%20and%20Assets%20Held%20for%20Sale) IGT agreed to sell its Gaming business for $4.05 billion, classifying it as discontinued operations with $4.81 billion in assets held for sale - IGT agreed to sell its IGT Gaming business for approximately **$4.05 billion** in cash to a buyer owned by Apollo Funds. The deal is expected to close by the end of Q3 2025[32](index=32&type=chunk) Assets and Liabilities Held for Sale (as of March 31, 2025) | Category | Amount ($ in millions) | | :--- | :--- | | Assets held for sale | 4,806 | | Liabilities held for sale | 1,003 | Income from Discontinued Operations | Period | Income from Discontinued Operations, Net of Tax ($ in millions) | | :--- | :--- | | Q1 2025 | 52 | | Q1 2024 | 13 | [Note 4. Revenue Recognition](index=14&type=section&id=Note%204.%20Revenue%20Recognition) Total revenue from continuing operations decreased to $583 million in Q1 2025, driven by declines in both service revenue and product sales Disaggregation of Revenue (Continuing Operations) | Revenue Source ($ in millions) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Service revenue | 557 | 619 | | Product sales | 26 | 42 | | **Total revenue** | **583** | **661** | - At March 31, 2025, the transaction price allocated to unsatisfied performance obligations for contracts longer than one year is approximately **$871 million**[44](index=44&type=chunk) [Note 9. Debt](index=17&type=section&id=Note%209.%20Debt) Total debt increased to $5.68 billion as of March 31, 2025, following a new €1 billion term loan facility agreement Total Debt Summary | Date | Total Debt ($ in millions) | Fair Value ($ in millions) | | :--- | :--- | :--- | | March 31, 2025 | 5,679 | 5,662 | | December 31, 2024 | 5,361 | 5,346 | - On March 14, 2025, the company entered into a new **€1 billion** senior facilities agreement (the "2030 Facilities"), consisting of two **€500 million** tranches. Facility A was utilized on March 24, 2025[57](index=57&type=chunk) [Note 12. Shareholders' Equity](index=20&type=section&id=Note%2012.%20Shareholders'%20Equity) The company declared and paid a quarterly cash dividend of $0.20 per share in Q1 2025, with another declared for June 2025 - In Q1 2025, the Board declared a quarterly cash dividend of **$0.20 per share**, paid on March 25, 2025[70](index=70&type=chunk) - On May 8, 2025, the Board declared another quarterly cash dividend of **$0.20 per share**, payable on June 12, 2025[70](index=70&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2025 financial results for continuing lottery operations, detailing revenue decline, operating margins, and liquidity changes [Business Overview](index=23&type=section&id=Business%20Overview) The company is transitioning to a pure-play lottery business following the pending $4.05 billion sale of its IGT Gaming segment - Following the pending sale of IGT Gaming, the company operates as a pure-play lottery business, providing lottery management services and systems globally[83](index=83&type=chunk)[84](index=84&type=chunk)[86](index=86&type=chunk) - The sale of IGT Gaming to an entity owned by Apollo Funds for **$4.05 billion** cash is expected to close by the end of Q3 2025[85](index=85&type=chunk) [Results of Operations](index=24&type=section&id=Results%20of%20Operations) Total revenue from continuing operations decreased by 12% to $583 million in Q1 2025, primarily due to lower LMA incentive revenue and reduced jackpot activity Revenue from Continuing Operations (Q1 2025 vs Q1 2024) | ($ in millions) | 2025 | 2024 | Change $ | Change % | | :--- | :--- | :--- | :--- | :--- | | Service revenue | 557 | 619 | (62) | -10% | | Product sales | 26 | 42 | (17) | -39% | | **Total revenue** | **583** | **661** | **(78)** | **-12%** | - The revenue decline was driven by a **$32 million** reduction in LMA incentive revenue and a **46.1%** drop in same-store sales for U.S. multi-state jackpot games[94](index=94&type=chunk) Operating Margin (Continuing Operations) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Operating Income ($ in millions) | $138 | $219 | | Operating Margin (%) | 24% | 33% | [Liquidity and Capital Resources](index=28&type=section&id=Liquidity%20and%20Capital%20Resources) Total liquidity increased to $2.15 billion at March 31, 2025, with net cash from continuing operating activities rising to $168 million Total Liquidity | ($ in millions) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Revolving Credit Facilities | 1,519 | 1,364 | | Cash and cash equivalents | 631 | 584 | | **Total Liquidity** | **2,150** | **1,948** | - Net cash provided by operating activities from continuing operations increased to **$168 million** in Q1 2025 from **$65 million** in Q1 2024, primarily due to favorable timing of tax and interest payments[116](index=116&type=chunk) - Net cash used for investing activities from continuing operations increased to **$78 million** from **$37 million** YoY, mainly due to a **$42 million** increase in capital expenditures[117](index=117&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=31&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company states that there have been no material changes to its market risk disclosures since its 2024 Form 20-F filing - There have been no material changes to the disclosure under "Part I, Item 11. Quantitative and Qualitative Disclosures About Market Risk" included in the 2024 Form 20-F[123](index=123&type=chunk) [Controls and Procedures](index=31&type=section&id=Item%204.%20Controls%20and%20Procedures) The company reports no material changes in its internal control over financial reporting during the first quarter of 2025 - No changes in internal control over financial reporting occurred during Q1 2025 that have materially affected, or are likely to materially affect, the company's internal controls[124](index=124&type=chunk) [PART II: OTHER INFORMATION](index=31&type=section&id=PART%20II%20OTHER%20INFORMATION) This section covers legal proceedings, risk factors, and details on unregistered sales of equity securities and use of proceeds [Legal Proceedings](index=31&type=section&id=Item%201.%20Legal%20Proceedings) The company confirms involvement in various legal proceedings with no material developments since the 2024 Annual Report on Form 20-F - The company is party to various legal proceedings in the ordinary course of business[125](index=125&type=chunk) - There have been no material developments to the litigation disclosed in the Annual Report on Form 20-F filed on February 25, 2025[126](index=126&type=chunk) [Risk Factors](index=32&type=section&id=Item%201A.%20Risk%20Factors) The company states that there have been no material changes to its risk factors since its 2024 Form 20-F filing - There have been no material changes to the risk factors disclosed in the 2024 Form 20-F[127](index=127&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=32&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No common stock repurchases occurred in Q1 2025, with $156 million repurchased under the $300 million program since inception - No repurchases of common stock were made during the first quarter ended March 31, 2025[128](index=128&type=chunk) - The company has a **$300 million** share repurchase program authorized in November 2021. Since inception through March 31, 2025, **$156 million** (**6.9 million** shares) has been repurchased[129](index=129&type=chunk)

Financial Data and Key Metrics Changes - The company reported Q1 revenue of $583 million, down from $661 million in the prior year, primarily due to lower jackpot activity and associated LMA impacts [25][30] - Adjusted EBITDA for the quarter was $250 million, with a margin of 43%, despite the challenges faced [7][24] - Cash conversion ratio was 67%, consistent with the previous fiscal years, generating $168 million in cash from operations [29][30] Business Line Data and Key Metrics Changes - Instant ticket and draw games accounted for about 95% of annual wager-based revenue and nearly 80% of total revenue, with same-store sales rising nearly 1.5% globally [6][10] - iLottery sales increased by 26%, driven by successful game launches in states like Georgia and Kentucky [12][20] - In Italy, normalized same-store sales growth was 2%, with strong performance from Scratch and Win and Lotto games [8][10] Market Data and Key Metrics Changes - U.S. sales were stable, with large jurisdictions like California and Florida experiencing growth due to new game launches [10][11] - The company noted that the macroeconomic environment is uncertain, but lottery sales in the U.S. and Italy have historically shown resilience during recessions [20][21] - The Rest of World segment contributed under 15% of total revenue but showed positive growth driven by strong EuroMillions jackpots [66] Company Strategy and Development Direction - The company is focused on product innovation, including the recent shift of Mega Millions to a $5 price point, which is expected to enhance sales [13][51] - Strategic initiatives include expanding retail touchpoints and optimizing the point of sales network, with investments in self-service lottery vending machines and in-lane purchasing solutions [14][16] - The company is transitioning to a cloud-based iLottery platform to improve player experience and scalability [18][84] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the macroeconomic environment and its potential impact on consumer spending, while remaining optimistic about long-term growth prospects [20][30] - The company expects full-year 2025 revenue of approximately $2.55 billion and adjusted EBITDA of $1.1 billion at the low end of the outlook range [30][31] - Management anticipates a normalization of jackpot activity in the second half of the year, which should positively impact profit margins [28][42] Other Important Information - The Italian Lotto license process is underway, with economic proposals to be opened on May 19, which is a significant milestone for the company [21][72] - The company successfully issued a new €1 billion term loan to enhance liquidity ahead of the Lotto license award [29][30] - The gaming and digital assets sale is on track to close in Q3, which will further strengthen the company's financial position [22][30] Q&A Session Summary Question: Can you elaborate on the guidance revision and its relation to the macro environment? - Management indicated that the macro environment is fluid, with stability in core player demand, but volatility primarily associated with jackpot performance and related LMA impacts [36][37] Question: What is the impact of the Mega Millions $5 shift? - Management is optimistic about the potential impact of the price increase, noting that historical price changes have led to increased sales volume [51][52] Question: What is the status of the Texas Lottery renewal process? - The legislative session in Texas is ongoing, with clarity expected after June 2, and the procurement process is still proceeding [55][56] Question: Can you provide insights on the Italian market growth? - Growth in the Italian market is attributed to ongoing innovation in lottery products, with a combination of new product launches and volume growth contributing to the increase [88][89] Question: How does the company plan to manage its financial position amid increasing debt? - Management noted that half of the recent debt increase was due to foreign currency translation, and they expect to maintain positive cash flow despite heavy CapEx [83][84]

Financial Data and Key Metrics Changes - The company reported adjusted EBITDA of $250 million with a margin of 43% for Q1 2025, down from $661 million in the prior year due to lower jackpot activity and associated impacts [21][22] - Revenue for Q1 2025 was $583 million, a decrease from $661 million in the previous year, primarily due to the absence of large jackpots [22][24] - Cash generation from continuing operations was strong, with a cash conversion ratio of 67%, delivering $168 million in cash from operations and free cash flow of $92 million [25] Business Line Data and Key Metrics Changes - Instant ticket and draw games accounted for about 95% of annual wager-based revenue and nearly 80% of total revenue, with normalized same-store sales rising nearly 1.5% in the quarter [5][6] - iLottery sales increased by 26%, driven by successful game launches in states like Georgia and Kentucky [9][10] - In Italy, same-store sales growth was 2%, with notable increases in Scratch and Win and Lotto games [6][11] Market Data and Key Metrics Changes - U.S. sales were stable, with large jurisdictions like California and Florida experiencing growth due to new game launches [8][9] - The company noted that the macroeconomic environment is fluid, with ongoing tariff discussions and consumer spending uncertainty impacting projections [32][39] - The Italian market showed resilience, with growth in lottery products alongside sports betting and iCasino [80] Company Strategy and Development Direction - The company is focusing on product innovation, including the recent shift of Mega Millions to a $5 price point, which is expected to enhance sales and player engagement [11][48] - Expansion of retail touchpoints and optimization of the point-of-sale network are key initiatives, including the rollout of self-service lottery vending machines and in-lane purchasing solutions [12][13] - The company is transitioning to a cloud-based solution for iLottery platforms to improve player experience and scalability [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term prospects of the business despite current macroeconomic challenges, noting historical resilience of lottery sales during recessions [17][18] - The company anticipates a normalization of jackpot activity and expects improved profit margins in the future [25][39] - The upcoming award of the Italy Lotto license is seen as a significant catalyst for growth [19][86] Other Important Information - The company successfully issued a new €1 billion term loan to enhance liquidity ahead of the Italy Lotto award [25] - Net debt rose to $5 billion, with a pro forma net debt leverage of 2.8 times, in line with targets [26] - The company expects full-year 2025 revenue of approximately $2.55 billion and adjusted EBITDA of $1.1 billion at the low end of the outlook range [26] Q&A Session Summary Question: Guidance revision and macro environment impact - Management indicated that the guidance revision was influenced by lower jackpot activity and macroeconomic uncertainty, with expectations for growth in the second half of the year [29][39] Question: Mega Millions $5 shift and player resistance - Management remains optimistic about the $5 Mega Millions price point, noting that the transition was smooth and enhancements are expected to attract players [48][50] Question: Texas Lottery renewal process - The legislative session in Texas is ongoing, with clarity expected after June 2 regarding the future of the Texas Lottery [52][53] Question: Margin expectations and cost impacts - Management confirmed that margins are expected to improve in the second half of the year as jackpot activity normalizes [58][62] Question: Italian market growth and cannibalization concerns - Growth in the Italian market is attributed to ongoing innovation in lottery products, with no significant cannibalization observed between verticals [80][81]

Financial Performance - Q1 2025 - Revenue decreased by 12% Y/Y to $583 million, or 10% on a constant currency basis[35] - Operating income decreased by 37% Y/Y to $138 million, or 35% on a constant currency basis[35] - Adjusted EBITDA decreased by 24% Y/Y to $250 million, or 22% on a constant currency basis[35] - Income from continuing operations significantly decreased by 93% Y/Y to $8 million[35] - Adjusted diluted EPS decreased by 69% Y/Y to $009[35] Sales Trends - Global instant ticket & draw game same-store sales increased by 14%, normalized for calendar shifts[19, 22] - U S multi-state jackpot sales significantly decreased by 461%[22, 60] - iLottery wagers increased by over 25% due to double-digit growth across geographies[19] Liquidity and Debt - The company has significant liquidity of $22 billion, including $06 billion in unrestricted cash and $15 billion in additional borrowing capacity[41] - Pro forma net debt leverage is 28x, considering a $2 billion debt repayment[44] FY25 Outlook - The company expects revenue of approximately $255 billion and Adjusted EBITDA of approximately $110 billion, aligning with the low end of the original ranges[13] - 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[13]

Core Insights - International Game Technology PLC (IGT) reported a decline in revenue and income for Q1 2025, with revenue at $583 million, down 12% year-over-year from $661 million [3][4] - The company anticipates being at the low end of its full-year revenue and Adjusted EBITDA guidance due to lower U.S. multi-state jackpot activity and a worsening macroeconomic environment [2][8] - Despite the challenges, IGT maintains a strong financial profile with significant liquidity to support future contract renewals [2][5] Financial Performance - Revenue decreased to $583 million from $661 million, a 12% decline [3][4] - Operating income fell to $138 million, down 37% from $219 million, with an operating income margin of 23.7% compared to 33.1% in the prior year [3][4] - Income from continuing operations dropped significantly to $8 million, a 93% decrease from $116 million [3][4] - Adjusted EBITDA was $250 million, down 24% from $327 million, with an Adjusted EBITDA margin of 42.8% [3][4] - Diluted loss per share from continuing operations was $(0.11), compared to earnings of $0.35 in the prior year [4][30] Cash Flow and Liquidity - Net cash provided by operating activities from continuing operations was $168 million, a significant increase from $65 million in the prior year [3][32] - Free cash flow reached $92 million, up 204% from $30 million [3][32] - Total liquidity as of March 31, 2025, was $2.2 billion, including $631 million in cash and $1.5 billion in additional borrowing capacity [7] Market Trends and Outlook - Global sales of instant ticket and draw games are expanding, driven by game innovation and portfolio optimization [2] - The company expects full-year revenue of approximately $2.55 billion and Adjusted EBITDA of approximately $1.10 billion, aligning with the low end of previous guidance [8][23] - The decline in U.S. multi-state jackpot activity and macroeconomic challenges are expected to impact future performance [2][23] Other Developments - IGT successfully executed a €1 billion term loan due 2030 [8] - The Board of Directors declared a quarterly cash dividend of $0.20 per common share [8]

Core Insights - Slotomania, a leading social casino mobile game from Playtika, has launched a new free-to-play slot game called Wheel of Fortune Lucky Coins On Stage, which features 5 reels and 40 paylines, bringing the iconic game show experience to mobile devices [1][3] - The game is part of a marketing campaign that includes a TV spot titled "Vegas in PJs," showcasing the excitement of IGT's land-based slots and featuring a real player who won a trip to Europe [2] - The new game aims to enhance player engagement by combining traditional casino elements with innovative mobile gameplay, appealing to both existing fans and new players [3] Company Overview - Slotomania is recognized as the world's 1 free-to-play slots game, offering a wide variety of high-quality slot games with advanced graphics and sound effects, and a strong community of slot enthusiasts [4] - Playtika Holding Corp., the parent company of Slotomania, is a leader in mobile gaming entertainment, known for pioneering free-to-play social games on various platforms since its founding in 2010 [5]

Core Insights - International Game Technology PLC (IGT) has launched its PlaySports technology for retail sports betting at Silver Reef Casino Resort in Ferndale, Washington, marking the 11th casino in the state to adopt this platform [1][2] - The partnership aims to enhance the sports betting experience for customers, leveraging IGT's technology and trading advisory services to attract sports fans and engage guests with localized offers [2] Company Overview - IGT is a global leader in gaming, providing a wide range of gaming experiences across various channels, including lotteries, gaming machines, sports betting, and digital platforms [3] - The company has a strong local presence in over 100 jurisdictions worldwide and employs approximately 11,000 people [3] - IGT PlaySports has been recognized as the "Sportsbook Platform Provider of the Year" at the 2024 EGR North America Awards, highlighting its leadership in the North American sports betting market [2]

Core Insights - IGT has signed a multi-year systems agreement with Red Earth Casino to implement the IGT ADVANTAGE casino management system, replacing a competing system [1][2] - The upgrade includes a full-floor systems-hardware enhancement with advanced AVENTO capabilities and the use of IGT's W2G Accrual and Mobile Responder modules [1][2] - The partnership aims to modernize the player experience and enhance loyalty programs, aligning with Red Earth Casino's long-term strategy for growth in tribal gaming [2] Company Overview - IGT is a global leader in gaming, providing a wide range of gaming experiences across various channels, including lotteries, gaming machines, and digital platforms [4] - The company emphasizes innovation, player insights, and operational expertise to deliver engaging gaming experiences [4] - IGT operates in over 100 jurisdictions worldwide and has approximately 11,000 employees [4] Red Earth Casino Overview - Red Earth Casino is located in Thermal, California, and features over 350 gaming machines along with diverse dining options [5] - The casino is recognized for its exceptional customer service and commitment to providing a clean and safe environment for visitors [6] - Owned by the Torres Martinez Desert Cahuilla Indians, Red Earth Casino focuses on quality and community engagement [6]

Core Insights - IGT has introduced the Wheel of Fortune DiamondRS Premium Wheel cabinet, enhancing its product lineup for 2025, featuring innovative design and technology aimed at delivering high-quality entertainment [1] - The cabinet includes a 20-inch physical wheel, a 32-inch LCD top box, and a 23-inch transmissive display, designed specifically for Wheel of Fortune game content [1] - The new Ultra Link network includes Wheel of Fortune Cash Link™ Reels Double Diamond™ and Wheel of Fortune Cash Link Reels Double Gold, with a wide-area progressive jackpot reset value of $1.125 million [1] Company Overview - IGT is a global leader in gaming, providing responsible gaming experiences across various channels, including Lotteries, Gaming Machines, Sports Betting, and Digital [3] - The company emphasizes innovation, player insights, and operational expertise to create engaging gaming experiences and drive growth [3] - IGT operates in over 100 jurisdictions worldwide, maintaining strong relationships with governments and regulators, and employs approximately 11,000 people [3]

LONDON, April 15, 2025 /PRNewswire/ -- International Game Technology PLC ("IGT") (NYSE:IGT) will host a conference call and live webcast on Tuesday, May 13, 2025 to discuss first quarter 2025 results for the period ended March 31, 2025.    Conference call details:Tuesday, May 13, 20258:00 a.m. EDT Conference call registration: Participants are encouraged to pre-register for the conference call by clicking here. Upon registering, participants will receive a dial-in number and unique PIN. Webcast registration ...