International Game Technology PLC(US:IGT)2025-02-25 11:45Financial Performance - Revenue for FY'24 was $2.5 billion, driven by sustained growth in instant ticket and draw game sales, with an income from continuing operations of approximately $270 million, representing a 10.8% margin[9]. - Adjusted EBITDA for FY'24 was $1.2 billion, with a margin of 46.6%, while Q4'24 Adjusted EBITDA was $290 million, down 8% year-over-year[18][9]. - Q4'24 total revenue decreased by 4% year-over-year to $1.18 billion, while FY'24 total revenue was $2.512 billion, a slight decline from $2.529 billion in FY'23[55]. - Instant ticket and draw wager-based revenue for Q4'24 was $511 million, a 2% increase from Q4'23, while U.S. multi-state jackpot revenue fell by 21% to $26 million[55]. - Operating income for Q4'24 was $179 million, down 9% from $197 million in Q4'23, with adjusted EBITDA at $290 million, an 8% decrease year-over-year[59]. - Net income from continuing operations attributable to IGT PLC for Q4'24 was $217 million, significantly higher than $27 million in Q4'23[59]. - For Q4 2024, income from continuing operations increased to $116 million, up from $73 million in Q4 2023, representing a 58.9% year-over-year growth[61]. - For the full year 2024, reported EPS from continuing operations attributable to IGT PLC was $0.57, an increase from $0.67 in the previous year[63]. Cash Flow and Expenditures - The company generated over $1 billion in consolidated cash from operations and approximately $660 million in consolidated free cash flow, with 80% coming from continuing operations[9]. - Free cash flow for Q4'24 was $154 million, compared to $253 million in Q4'23, indicating a decrease in cash generation[60]. - Cash from operations is estimated to be approximately ($300 million), impacted by an upfront license fee of €800 million (~$850 million) related to the Italy Lotto[32]. - Capital expenditures for FY'24 were approximately $450 million, reflecting increased investments related to large contract wins and extensions[6]. - The company plans to increase capital expenditures to approximately $450 million, reflecting investments in upcoming bids and joint ventures[32]. - Capital expenditures for the year 2024 totaled $149 million, slightly up from $143 million in 2023[61]. Debt and Financial Position - Pro forma net debt leverage was calculated at 2.4x, with net debt as of December being $2.78 billion[9][29]. - The company announced the sale of its Gaming & Digital business for $4.05 billion in cash, with a significant portion expected to be used for debt reduction and returned to shareholders[9][16]. Future Outlook - Total revenue for FY'25 is projected to be between $2.55 billion and $2.65 billion, reflecting a low-to-mid single-digit growth[32]. - Adjusted EBITDA for FY'25 is expected to be in the range of $1.10 billion to $1.15 billion, with a $25 million increase in business investment[32]. - The company expects FY'25 and FY'26 capital expenditures to be in the range of $400 million to $450 million, including important investments in California, Texas, New York, and Italy[30]. - Future growth strategies include winning important contracts in Italy and Texas, and investing in content and technologies to fuel growth[16]. Market Performance - Gross wagers in the U.S. and Canada decreased by 0.7% in Q4'24, while instant and draw game wagers increased by 2.2%[11]. - Global same-store sales growth for instant ticket and draw games was 3.9% in Q4'24, while U.S. multi-state jackpots saw a decline of 20.2%[57]. Cost Management - The company is focused on structural cost savings, with the OPtiMa 3.0 initiative expected to deliver $40 million in annual savings over the next two years[30]. Taxation - The reported effective tax rate for Q4 2024 was 43.4%, while the adjusted effective tax rate was 42.1%[62]. - The effective tax rate for the full year 2024 was 48.0%, with an adjusted effective tax rate of 44.3%[63]. Other Financial Metrics - The company reported a net foreign exchange loss of $75 million for Q4 2024, compared to a gain of $52 million in Q4 2023[61]. - Stock-based compensation increased to $7 million in Q4 2024 from $5 million in Q4 2023, marking a 40% increase[61]. - The average diluted shares outstanding for adjusted EPS calculations was 204 million shares for Q4 2024[62].