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]

Financial Data and Key Metrics Changes - Group revenue increased by 8% year over year, with net income growing by 289% and adjusted EBITDA rising by 20% [19][20][29] - Earnings per share increased to $1.57 from a loss of $1.1, with adjusted earnings per share up by 51% [20] - Net cash from operating activities reduced by 44%, and free cash flow decreased by 52% year over year [26] Business Line Data and Key Metrics Changes - U.S. revenue was 18% higher year over year, with sportsbook growth of 15% and iGaming growth of 32% [21][22] - International revenue was $2 billion, reflecting constant currency growth of 32%, driven by strong performance in SEA and CEE regions [22][23] - iGaming in India saw a remarkable year-over-year revenue growth of 45% [16][23] Market Data and Key Metrics Changes - SEA region experienced excellent growth of 14%, driven by 25% AMP growth [23] - UKI saw overall growth moderate to 2%, but iGaming growth remained strong at 9% [23] - CEE's strong growth of 15% was driven by performance in Georgia and Serbia [23] Company Strategy and Development Direction - The company is focused on scaling its U.S. business and leveraging its international operations for diversification [6][11] - The acquisition of SNAI in Italy is expected to enhance scale and operational benefits [14][17] - The company is excited about its outcome-based pricing technology, which aims to innovate across U.S. and international markets [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business despite potential economic pressures, citing historical performance during consumer pressure periods [7][11] - The company remains optimistic about long-term growth opportunities in the global regulated market [18] - Management highlighted the importance of net revenue growth as a key metric, emphasizing a disciplined approach to promotions and customer acquisition [57][63] Other Important Information - The company is committed to a share repurchase program, expecting to return approximately $1 billion to shareholders during 2025 [28] - The acquisition of Snai is expected to generate synergies of €70 million over three years [48] - The company is monitoring developments in prediction markets and exploring opportunities in this space [10][86] Q&A Session Summary Question: Can you elaborate on the basketball-related factors affecting handle? - Management acknowledged some weakness in basketball handle but noted strength in NFL and MLB performance, indicating handle growth is in line with expectations [36][39] Question: How is iGaming performing compared to peers? - Management expressed satisfaction with iGaming performance, highlighting product delivery and unique content as key drivers [37] Question: What is the integration process for Snai? - Management is optimistic about the integration, expecting to realize synergies and operational benefits quickly [47] Question: How does the company view the impact of favorable sports results on guidance? - Management noted that while favorable results can impact cash balances, they remain confident in pricing and structural margin assumptions [87][88] Question: What are the strategic merits of bidding for the Italian Lotto? - Management highlighted the opportunity to cement leadership in Italy and the potential for digital growth in the lottery market [78][79] Question: Is there potential for maturity in U.S. states? - Management indicated that no states have reached maturity yet, with ongoing growth expected in existing states [95]

Financial Data and Key Metrics Changes - In 2024, the company generated over $1 billion in consolidated cash from operations and approximately $660 million of free cash flow, with more than 80% of that free cash flow coming from lottery operations [7][31] - The revenue for the year was $2.5 billion, consistent with 2023, with EBITDA of $1.2 billion at a 47% margin [8][27] - The company reported Q4 revenue of $651 million, down from $681 million in the prior year, primarily due to lower U.S. multi-state jackpot sales [23][24] - Adjusted EBITDA for the full year was $1.17 billion, down from $1.21 billion in the prior year [27] Business Line Data and Key Metrics Changes - Instant ticket and draw game sales increased by 4% in Q4, with a 7% same-store sales growth in Italy [10][23] - U.S. multi-state jackpot sales declined by $29 million due to lower jackpot activity compared to the previous year [25] - iLottery sales rose by 28% in both Q4 and the full year, maintaining a double-digit growth pace [13][14] Market Data and Key Metrics Changes - The company achieved strong growth in Italy, driven by new game launches and special draws [11][12] - Improving trends in large jurisdictions, including California, Florida, Georgia, New York, and Texas, contributed to increased sales [12] - The company is the leading iLottery platform supplier globally, with significant growth in jurisdictions like Georgia and Kentucky [14][15] Company Strategy and Development Direction - The company concluded a strategic review resulting in the sale of its gaming and digital business for over $4 billion, allowing a singular focus on its lottery business [6][21] - Future investments will focus on new game content and technologies to fuel sales growth and strengthen industry leadership [20] - The company is identifying structural cost savings to enhance efficiency and financial profile [21][33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the core recurring business, expecting revenue growth aligned with long-term expectations [36] - The company anticipates a challenging first half of 2025 due to lower U.S. multi-stage jackpot activity impacting service revenue [37][39] - The increase in Mega Millions ticket price to $5 is expected to positively impact sales in the latter half of 2025 [88][92] Other Important Information - The company plans to allocate at least $2 billion of the proceeds from the gaming and digital sale for debt reduction [31][45] - Annual CapEx is expected to be in the range of $400 million to $450 million for 2025 and 2026, with significant investments required for the Italy Lotto contract [34][35] Q&A Session Summary Question: Can you expand on the $25 million investment into new contract extensions and growth initiatives? - Management indicated that these costs are primarily temporary and necessary for securing new contracts and technology setups [50][54] Question: What are the expected uses of proceeds from the gaming and digital business sale? - Management confirmed a commitment to $2 billion for debt repayment, with further discussions on additional allocations to occur around the closing date [59][60] Question: Can you provide an update on the Italy lotto rebid process? - The RFP was issued in early January, with bids due by March 17, and the award is expected in Q2 [74][75] Question: How significant are carriers for driving draw-based sales? - Management noted that the impact of carriers varies by jurisdiction, with minimal effect on overall sales for IGT [78][82] Question: What is the expected impact of the Mega Millions price increase? - Management believes the price increase will lead to fewer tickets sold but at a higher price point, potentially increasing overall revenue [88][92] Question: Can you discuss the new printing press and its expected returns? - The new press is expected to improve both capacity and efficiency, leading to better margins and competitive positioning [100][101] Question: What is the status of the Texas lottery renewal process? - The bid has been submitted, and feedback is expected in the first half of 2025 [121] Question: What is the situation regarding LMA incentives for the first semester? - Management indicated a combination of shortfall and lower incentives compared to the previous year, with a conservative outlook for the first half of 2025 [122][124]