INTERNATIONAL GAME TECHNOLOGY PLC REPORTS FOURTH QUARTER AND FULL YEAR 2021 RESULTS

 
 

- International Game Technology PLC ("IGT") (NYSE: IGT) today reported financial results for the fourth quarter and full year ended December 31, 2021. Today, at 8:00 a.m. EST management will host a conference call and webcast to present the results; access details are provided below.

 
 

  IGT (NYSE:IGT) is a global leader in gaming. We deliver entertaining and responsible gaming experiences for players across all channels and regulated segments, from Gaming Machines and Lotteries to Sports Betting and Digital. Leveraging a wealth of compelling content, substantial investment in innovation, player insights, operational expertise, and leading-edge technology, our solutions deliver unrivaled gaming experiences that engage players and drive growth. We have a well-established local presence and relationships with governments and regulators in more than 100 countries around the world, and create value by adhering to the highest standards of service, integrity, and responsibility. IGT has approximately 10,500 employees. For more information, please visit www.igt.com. 

 
 

"Our 2021 financial results reflect the best revenue, profit, and cash flow performance in the last four years, meeting or exceeding target levels on strong performance across the portfolio," said   Vince Sadusky , CEO of IGT . "We made important progress on several strategic objectives, and I am excited to be leading IGT in the next chapter of its evolution. We have set aggressive but achievable multi-year goals and we have a focused strategy to maximize value for all stakeholders."

 

"Improving leverage to 3.5x a year ahead of schedule enables us to pursue a balanced capital allocation framework that supports investing for growth, continued debt reduction, and the reinstatement of capital returns through quarterly dividends and share repurchases," said   Max Chiara , CFO of IGT . "As we enter 2022, the Company is in a very good place with a solid financial condition and a strong foundation for further growth."

 

   Overview of Consolidated Fourth Quarter and Full Year 2021 Results   

 
 
                                                                                                                                                                                                                                                                                                                                                                                                          
 
 

  Quarter Ended  

 
 

  Y/Y
Change
(%)
 

 
 

  Constant
Currency
Change
(%)
 

 
 

  Year Ended  

 
 

  Y/Y
Change
(%)
 

 
 

  Constant
Currency
Change
(%)
 

 
 

   All amounts from continuing operations
unless otherwise noted
 
 

 
 

  December 31,  

 
 

  December 31,  

 
 
 

  2021  

 
 
 

  2020  

 
 

  2021  

 
 
 

  2020  

 
 

   (In $ millions, unless otherwise noted)   

 
 
 
 
 
 
 
 
 
 
 
 

    GAAP Financials:    

 
 
 
 
 
 
 
 
 
 
 
 

  Revenue  

 
 
 
 
 
 
 
 
 
 
 
 

  Global Lottery  

 
 

  687  

 
 
 

  630  

 
 

  9%  

 
 

  12%  

 
 

  2,812  

 
 
 

  2,164  

 
 

  30%  

 
 

  28%  

 
 

  Global Gaming  

 
 

  321  

 
 
 

  222  

 
 

  45%  

 
 

  45%  

 
 

  1,112  

 
 
 

  837  

 
 

  33%  

 
 

  32%  

 
 

  Digital & Betting  

 
 

  42  

 
 
 

  33  

 
 

  25%  

 
 

  24%  

 
 

  165  

 
 
 

  115  

 
 

  44%  

 
 

  40%  

 
 

   Total revenue   

 
 

   1,050   

 
 
 

   885   

 
 

   19%   

 
 

   21%   

 
 

   4,089   

 
 
 

   3,115   

 
 

   31%   

 
 

   29%   

 
 
 
 
 
 
 
 
 
 
 
 
 

  Operating income/(loss)  

 
 
 
 
 
 
 
 
 
 
 
 

  Global Lottery  

 
 

  217  

 
 
 

  195  

 
 

  11%  

 
 

  14%  

 
 

  1,088  

 
 
 

  642  

 
 

  69%  

 
 

  65%  

 
 

  Global Gaming  

 
 

  36  

 
 
 

  (42)  

 
 

  NA  

 
 

  NA  

 
 

  43  

 
 
 

  (212)  

 
 

  NA  

 
 

  NA  

 
 

  Digital & Betting  

 
 

  5  

 
 
 

  3  

 
 

  41%  

 
 

  19%  

 
 

  33  

 
 
 

  6  

 
 

  421%  

 
 

  383%  

 
 

  Corporate support expense  

 
 

  (33)  

 
 
 

  (20)  

 
 

  (66)%  

 
 

  (76)%  

 
 

  (104)  

 
 
 

  (76)  

 
 

  (37)%  

 
 

  (33)%  

 
 

  Other (1)  

 
 

  (39)  

 
 
 

  (40)  

 
 

  2%  

 
 

  2%  

 
 

  (158)  

 
 
 

  (468)  

 
 

  66%  

 
 

  66%  

 
 

   Total operating income/(loss)   

 
 

   186   

 
 
 

   96   

 
 

   93%   

 
 

   96%   

 
 

   902   

 
 
 

   (107)   

 
 

   NA   

 
 

   NA   

 
 

   Operating Income margin   

 
 

   18%   

 
 
 

   11%   

 
 
 
 

   22%   

 
 
 

   (3)%   

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

   Net cash provided by operating activities   

 
 

   396   

 
 
 

   251   

 
 

   58%   

 
 
 

   1,010   

 
 
 

   595   

 
 

   70%   

 
 
 
 
 
 
 
 
 
 
 
 
 
 

   Cash and cash equivalents   

 
 

   591   

 
 
 

   907   

 
 

   (35)%   

 
 
 

   591   

 
 
 

   907   

 
 

   (35)%   

 
 
 
 
 
 
 
 
 
 
 
 
 
 

    Non-GAAP Financial Measures:    

 
 
 
 
 
 
 
 
 
 
 
 

  Adjusted EBITDA  

 
 
 
 
 
 
 
 
 
 
 
 

  Global Lottery  

 
 

  336  

 
 
 

  313  

 
 

  7%  

 
 

  10%  

 
 

  1,545  

 
 
 

  1,086  

 
 

  42%  

 
 

  39%  

 
 

  Global Gaming  

 
 

  66  

 
 
 

  (10)  

 
 

  NA  

 
 

  NA  

 
 

  173  

 
 
 

  (38)  

 
 

  NA  

 
 

  NA  

 
 

  Digital & Betting  

 
 

  9  

 
 
 

  8  

 
 

  12%  

 
 

  3%  

 
 

  48  

 
 
 

  22  

 
 

  116%  

 
 

  105%  

 
 

  Corporate support expense  

 
 

  (24)  

 
 
 

  (16)  

 
 

  (49)%  

 
 

  (62)%  

 
 

  (80)  

 
 
 

  (62)  

 
 

  (29)%  

 
 

  (24)%  

 
 

   Total Adjusted EBITDA   

 
 

   387   

 
 
 

   295   

 
 

   31%   

 
 

   33%   

 
 

   1,686   

 
 
 

   1,008   

 
 

   67%   

 
 

   64%   

 
 

   Adjusted EBITDA margin   

 
 

   37%   

 
 
 

   33%   

 
 
 
 

   41%   

 
 
 

   32%   

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

   Free cash flow   

 
 

   326   

 
 
 

   201   

 
 

   62%   

 
 
 

   771   

 
 
 

   340   

 
 

   127%   

 
 
 
 
 
 
 
 
 
 
 
 
 
 

   Net debt (2)   

 
 
 
 
 
 
 

   5,922   

 
 
 

   7,319   

 
 

   (19)%   

 
 
 
 
 
 
 
 
 
 
 
 
 
 

   (1) Primarily includes purchase price amortization  

 
 

   (2) Historical net debt recast to only reflect continuing operations  

 
 

  Note: Reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures are provided at the end of this news release  

 
 
 

   Fourth Quarter and Full Year 2021 Key Highlights:   

 
  • Hosted Investor Day introducing Grow, Innovate, and Optimize strategic initiatives to deliver compelling 2025 financial targets
  •  
    • Mid-single digit organic revenue and mid-teens operating income compound annual growth rates from 2021 - 2025
    •  
    • Cumulative cash from operations of approximately $4.0 billion and free cash flow of about $2.4 billion from 2022 - 2025
    •  
  • Completed sale of Italy B2C gaming businesses; net proceeds used to reduce debt
  •  
  • Created stand-alone Digital & Betting segment; strengthened leadership with appointments of Joe Asher and Gil Rotem  
  •  
  • Achieved over $200 million in OPtiMa structural cost savings versus 2019
  •  
  • Reinstated $0.20 per common share quarterly cash dividend; repurchased 1.5 million shares for $41 million at an average price of $27.22 per share
  •  
  • Awarded 10-year lottery contract with Connecticut Lottery Corporation, replacing an incumbent following a competitive procurement
  •  
  • Won "Casino Supplier of the Year" award in 2021 Global Gaming Awards London
  •  
  • Extended cashless momentum with several deployments and regulatory approval in Nevada  
  •  
  • Company's lottery operations re-certified by World Lottery Association for Corporate Social Responsibility Standards and Responsible Gaming Framework for Suppliers
  •  

   Full Year 2021 Financial Highlights:   

 

Revenue of $4 .1 billion, up 31% from $3 .1 billion in the prior year, driven by impressive growth across segments

 
  • Global Lottery revenue of $2.8 billion , up from $2.2 billion , driven by 20% same-store sales growth and including around $165 million in benefits from certain discrete items in the first half of 2021
  •  
  • Global Gaming revenue rises 33% to $1.1 billion , as continued recovery drives key performance indicators higher
  •  
  • Digital & Betting revenue increases to $165 million , up 44%, propelled by new jurisdictions and customers
  •  

Operating income of $902 million , versus operating loss of $107 million in the prior-year period

 
  • Driven by double-digit revenue growth
  •  
  • Strong profit flow-through in Global Lottery segment enhanced by positive mix of high-margin Italy lottery sales; contribution of about $140 million from certain discrete items in the first half of 2021
  •  
  • Improved operating leverage from revenue growth coupled with benefit of structural cost savings in Global Gaming
  •  
  • Digital & Betting increases significantly on solid operating leverage
  •  

Net interest expense of $341 million , compared to $398 million in the prior year

 
  • Net proceeds from asset sale and free cash flow generation drove lower average debt balances
  •  
  • Proactive liability management actions lowered the average cost of debt
  •  

Provision for income taxes of $274 million versus $28 million in the prior year driven by significant increase in operating profitability and valuation allowances on deferred tax assets

 

Net income of $670 million compared to net loss of $839 million in the prior-year period

 
  • Significant increase in profit
  •  
  • Gain on sale of Italy gaming businesses
  •  
  • Goodwill impairment and non-cash foreign exchange losses in prior year
  •  

Adjusted EBITDA totaled nearly $1.7 billion , up 67% compared to the prior year; Adjusted EBITDA margin of 41%, among the highest level in Company history

 

Cash from operations was $1.0 billion compared to $595 million in the prior-year period

 
  • Strong performance and rigorous management of invested capital
  •  
  • Record free cash flow of $771 million , up from $340 million  
  •  

Shareholder returns reinstated with $41 million deployed for $0.20 per share quarterly cash dividend and $41 million for share repurchases

 

Net debt of $5.9 billion , down $1.4 billion from $7.3 billion at December 31, 2020  

 
  • Strong cash flow generation
  •  
  • Proceeds from sale of Italy B2C gaming businesses
  •  
  • Net debt leverage of 3.5x, down from 6.4x at December 31, 2020 , the lowest level in Company history and achieving the 2022 leverage target a year early
  •  

   Fourth Quarter 2021 Financial Highlights:   

 

Consolidated revenue of $1 .0 billion, up 19% from $885 million in the prior-year period, on double-digit, constant currency growth across segments

 
  • Global Lottery revenue totals $687 million , up from $630 million in the prior year, on 8% same-store sales growth
  •  
  • Global Gaming revenue of $321 million , up 45% from the prior year, primarily driven by higher replacement unit sales and average selling prices
  •  
  • Digital & Betting revenue rises to $42 million compared to $33 million in the prior year, propelled by new jurisdictions and customers
  •  

Operating income of $186 million , nearly doubling from $96 million in the prior year

 
  • Revenue growth with strong profit flow-through
  •  
  • Sustained focus on cost discipline/avoidance
  •  

Net interest expense of $77 million , down from $101 million in the prior-year

 
  • Lower average debt balances
  •  
  • Proactive liability management actions lowered the average cost of debt
  •  

Provision for income taxes of $56 million, down from $73 million, as prior year impacted by non-deductible foreign exchange losses and valuation allowances on deferred tax assets

 

Net income was $55 million versus a net loss of $220 million due to increased profit and lower non-cash foreign exchange losses

 

Adjusted EBITDA of $387 million , up 31% from $295 million in the prior year

 

Cash from operations of $396 million, up 58% from $251 million in the prior-year period

 
  • Solid financial performance and invested capital management
  •  
  • Free cash flow of $326 million , up from $201 million  
  •  
  • Record-level quarterly cash flow generation
  •  

   Cash and Liquidity Update
 
Total liquidity of $2 .3 billion as of December 31, 2021; $591 million in unrestricted cash and $1 .7 billion in additional borrowing capacity

 

Recently received credit rating upgrades with Standard & Poor's rising to BB+ and Moody's to Ba2, both with a stable outlook

 

   Other Developments
 
On January 20, 2022 , the Company announced several Executive and Board leadership changes

 
  • Lorenzo Pellicioli to retire as Chairperson of the Board of Directors
  •  
  •   Marco Sala appointed Executive Chair of the Board of Directors
  •  
  •   Vincent Sadusky appointed CEO and Executive Director
  •  
  •   Maria Pinelli appointed to the Board of Directors and Chair of the Audit Committee
  •  
  •   Ashley M. Hunter appointed to the Board of Directors and Nominating and Corporate Governance Committee
  •  

Yesterday, the Company announced an agreement to sell its Italian proximity payment business

 
  • €700 million purchase price; €630M enterprise value
  •  
  • Net proceeds primarily used to reduce debt
  •  
  • Transaction expected to close during the third quarter of 2022
  •  

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

 
  • Ex-dividend date of March 14, 2022  
  •  
  • Record date of March 15, 2022  
  •  
  • Payment date of March 29, 2022  
  •  

   Reaffirming Full-year and Introducing First Quarter 2022 Outlook   

 

Full-year

 
  • Revenue of ~$4.1 billion - $4.3 billion  
  •  
  • Operating income margin of 20% - 22%
  •  
  • Cash from operations of $850 million - $1,000 million  
  •  
  • Capital expenditures of $400 million - $450 million  
  •  

First quarter

 
  • Revenue of ~$1.0 billion - $1.1 billion  
  •  
  • Operating income margin of 20% - 22%
  •  

Outlook not adjusted for announced sale of Italian proximity payment business or any impact from the Russia / Ukraine conflict

 

   Earnings Conference Call and Webcast:
 
March 1, 2022, 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.

 

   About IGT
 
IGT (NYSE:IGT) is a global leader in gaming. We deliver entertaining and responsible gaming experiences for players across all channels and regulated segments, from Gaming Machines and Lotteries to Sports Betting and Digital. Leveraging a wealth of compelling content, substantial investment in innovation, player insights, operational expertise, and leading-edge technology, our solutions deliver unrivalled gaming experiences that engage players and drive growth. We have a well-established local presence and relationships with governments and regulators in more than 100 countries around the world, and create value by adhering to the highest standards of service, integrity, and responsibility. IGT has approximately 10,500 employees. For more information, please visit www.IGT.com .

 

  Cautionary Statement Regarding Forward-Looking Statements
This news release may contain forward-looking statements (including within the meaning of the Private Securities Litigation Reform Act of 1995) concerning International Game Technology PLC and its consolidated subsidiaries (the "Company") and other matters. These statements may discuss goals, intentions, and expectations as to future plans, trends, events, dividends, results of operations, or financial condition, or otherwise, based on current beliefs of the management of the Company as well as assumptions made by, and information currently available to, such management. Forward-looking statements may be accompanied by words such as "aim," "anticipate," "believe," "plan," "could," "would," "should," "shall", "continue," "estimate," "expect," "forecast," "future," "guidance," "intend," "may," "will," "possible," "potential," "predict," "project" or the negative or other variations of them. These forward-looking statements speak only as of the date on which such statements are made and are subject to various risks and uncertainties, many of which are outside the Company's control. Should one or more of these risks or uncertainties materialize, or should any of the underlying assumptions prove incorrect, actual results may differ materially from those predicted in the forward-looking statements and from past results, performance, or achievements. Therefore, you should not place undue reliance on such statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include (but are not limited to) the factors and risks described in the Company's annual report on Form 20-F for the financial year ended December 31, 2020 and other documents filed from time to time with the SEC, which are available on the SEC's website at www.sec.gov and on the investor relations section of the Company's website at www.IGT.com . Except as required under applicable law, the Company does not assume any obligation to update these forward-looking statements. You should carefully consider these factors and other risks and uncertainties that affect the Company's business. Nothing in this news release is intended, or is to be construed, as a profit forecast or to be interpreted to mean that the financial performance of International Game Technology PLC for the current or any future financial years will necessarily match or exceed the historical published financial performance or International Game Technology PLC, as applicable. All forward-looking statements contained in this news release are qualified in their entirety by this cautionary statement. All subsequent written or oral forward-looking statements attributable to International Game Technology PLC, or persons acting on its behalf, are expressly qualified in their entirety by this cautionary statement.

 

  Non-GAAP Financial Measures
Management supplements the reporting of financial information, determined under GAAP, with certain non-GAAP financial information. Management believes the non-GAAP information presented provides investors with additional useful information, but it is not intended to nor should it be considered in isolation or as a substitute for the related GAAP measures. Moreover, other companies may define non-GAAP measures differently, which limits the usefulness of these measures for comparisons with such other companies. The Company encourages investors to review its financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure.

 

Adjusted EBITDA represents net income (loss) from continuing operations (a GAAP measure) before income taxes, interest expense, foreign exchange gain (loss), other non-operating expenses, depreciation, impairment losses, amortization (service revenue, purchase accounting and non-purchase accounting), restructuring expenses, stock-based compensation, litigation expense (income), and certain other non-recurring items. Other non-recurring items are infrequent in nature and are not reflective of ongoing operational activities. For the business segments, Adjusted EBITDA represents segment operating income (loss) before depreciation, amortization (service revenue, purchase accounting and non-purchase accounting), restructuring expenses, stock-based compensation, litigation expense (income) and certain other non-recurring items.

 

Net debt is a non-GAAP financial measure that represents debt (a GAAP measure, calculated as long-term obligations plus short-term borrowings) minus capitalized debt issuance costs and cash and cash equivalents. Cash and cash equivalents are subtracted from the GAAP measure because they could be used to reduce the Company's debt obligations. Management believes that net debt is a useful measure to monitor leverage and evaluate the balance sheet.

 

Net debt leverage and Leverage are non-GAAP financial measures that represents the ratio of Net debt as of a particular balance sheet date to Adjusted EBITDA for the last twelve months ("LTM") prior to such date. Prior to the disposal of the Italian B2C gaming businesses in the second quarter of 2021, management calculated the Net debt leverage ratio as the ratio of Net debt as of a particular balance sheet date to the LTM of Adjusted EBITDA – combined prior to such date. Management believes that Net debt leverage is a useful measure to assess our financial strength and ability to incur incremental indebtedness when making key investment decisions.

 

Free cash flow is a non-GAAP financial measure that represents cash flow from operations (a GAAP measure) less capital expenditures. Management believes free cash flow is a useful measure of liquidity and an additional basis for assessing IGT's ability to fund its activities, including debt service and distribution of earnings to shareholders.

 

Constant currency is a non-GAAP financial measure that expresses the current financial data using the prior-year/period exchange rate (i.e., the exchange rates used in preparing the financial statements for the prior year). Management believes that constant currency is a useful measure to compare period-to-period results without regard to the impact of fluctuating foreign currency exchange rates.

 

A reconciliation of the non-GAAP measures to the corresponding amounts prepared in accordance with GAAP appears in the tables in this release. The tables provide additional information as to the items and amounts that have been excluded from the adjusted measures.

 

  Contact:
  Phil O'Shaughnessy , Global Communications, toll free in U.S./ Canada +1 (844) IGT-7452; outside U.S./ Canada +1 (401) 392-7452
Francesco Luti , +39 06 5189 9184; for Italian media inquiries
James Hurley , Investor Relations, +1 (401) 392-7190

 

 

 

   Select Performance and KPI data:     (In $ millions, unless otherwise noted)

 
 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
 

   GLOBAL LOTTERY   

 
 
 

   Q4'21   

 
 
 

   Q4'20   

 
 
 

   Y/Y
Change
(%)
 
 

 
 
 

   Constant
Currency
Change
(%) (1)
 
 

 
 
 

   FY'21   

 
 
 

   FY'20   

 
 
 

   Y/Y
Change
(%)
 
 

 
 
 

   Constant
Currency
Change
(%) (1)
 
 

 
 

   Revenue   

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

   Service   

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

  Operating and facilities management contracts  

 
 
 

  608  

 
 
 

  549  

 
 
 

  11%  

 
 
 

  13%  

 
 
 

  2,569  

 
 
 

  1,944  

 
 
 

  32%  

 
 
 

  30%  

 
 

  Upfront license fee amortization  

 
 
 

  (50)  

 
 
 

  (52)  

 
 
 

  5%  

 
 
 

  —%  

 
 
 

  (206)  

 
 
 

  (200)  

 
 
 

  (3)%  

 
 
 

  —%  

 
 

  Operating and facilities management contracts, net  

 
 
 

  558  

 
 
 

  497  

 
 
 

  12%  

 
 
 

  15%  

 
 
 

  2,363  

 
 
 

  1,744  

 
 
 

  35%  

 
 
 

  33%  

 
 

  Other  

 
 
 

  87  

 
 
 

  86  

 
 
 

  1%  

 
 
 

  6%  

 
 
 

  327  

 
 
 

  299  

 
 
 

  10%  

 
 
 

  7%  

 
 

   Total service revenue   

 
 
 

   646   

 
 
 

   583   

 
 
 

   11%   

 
 
 

   13%   

 
 
 

   2,690   

 
 
 

   2,043   

 
 
 

   32%   

 
 
 

   29%   

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

   Product sales   

 
 
 

   42   

 
 
 

   47   

 
 
 

   (11)%   

 
 
 

   (10)%   

 
 
 

   123   

 
 
 

   121   

 
 
 

   1%   

 
 
 

  —%  

 
 

   Total revenue   

 
 
 

   687   

 
 
 

   630   

 
 
 

   9%   

 
 
 

   12%   

 
 
 

   2,812   

 
 
 

   2,164   

 
 
 

   30%   

 
 
 

   28%   

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

   Operating income   

 
 
 

   217   

 
 
 

   195   

 
 
 

   11%   

 
 
 

   14%   

 
 
 

   1,088   

 
 
 

   642   

 
 
 

   69%   

 
 
 

   65%   

 
 

   Adjusted EBITDA (1)   

 
 
 

   336   

 
 
 

   313   

 
 
 

   7%   

 
 
 

   10%   

 
 
 

   1,545   

 
 
 

   1,086   

 
 
 

   42%   

 
 
 

   39%   

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

   Global same-store sales growth (%)   

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

  Instant ticket & draw games  

 
 
 

  6.6%  

 
 
 

  8.2%  

 
 
 
 
 
 
 

  18.1%  

 
 
 

  1.6%  

 
 
 
 
 
 

  Multi-jurisdiction jackpots  

 
 
 

  21.7%  

 
 
 

  4.5%  

 
 
 
 
 
 
 

  46.4%  

 
 
 

  (17.0%)  

 
 
 
 
 
 

   Total   

 
 
 

   7.7%   

 
 
 

   7.9%   

 
 
 
 
 
 
 

   20.1%   

 
 
 

   0.1%   

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

   North America and Rest of world same-store sales
growth (%)
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

  Instant ticket & draw games  

 
 
 

  6.3%  

 
 
 

  10.7%  

 
 
 
 
 
 
 

  12.7%  

 
 
 

  7.3%  

 
 
 
 
 
 

  Multi-jurisdiction jackpots  

 
 
 

  21.7%  

 
 
 

  4.5%  

 
 
 
 
 
 
 

  46.4%  

 
 
 

  (17.0%)  

 
 
 
 
 
 

   Total   

 
 
 

   7.8%   

 
 
 

   10.1%   

 
 
 
 
 
 
 

   15.6%   

 
 
 

   4.7%   

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

   Italy same-store sales growth (%)   

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

  Instant ticket & draw games  

 
 
 

   7.7%   

 
 
 

   0.4%   

 
 
 
 
 
 
 

   38.9%   

 
 
 

   (16.1%)   

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

    (1)   Non-GAAP measure; see disclaimer on page 6 and reconciliations to the most directly comparable GAAP measure in Appendix for further details   

 
 
 
 

   GLOBAL GAMING   

 
 
 

   Q4'21   

 
 
 

   Q4'20   

 
 
 

   Y/Y
Change
(%)
 
 

 
 
 

   Constant
Currency
Change
(%) (1)
 
 

 
 
 

   FY'21   

 
 
 

   FY'20   

 
 
 

   Y/Y
Change
(%)
 
 

 
 
 

   Constant
Currency
Change
(%) (1)
 
 

 
 

   Revenue   

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

   Service   

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

  Terminal  

 
 
 

  109  

 
 
 

  85  

 
 
 

  29%  

 
 
 

  29%  

 
 
 

  424  

 
 
 

  298  

 
 
 

  42%  

 
 
 

  42%  

 
 

  Systems, software, and other  

 
 
 

  54  

 
 
 

  48  

 
 
 

  12%  

 
 
 

  13%  

 
 
 

  206  

 
 
 

  186  

 
 
 

  11%  

 
 
 

  11%  

 
 

   Total service revenue   

 
 
 

   163   

 
 
 

   133   

 
 
 

   23%   

 
 
 

   24%   

 
 
 

   630   

 
 
 

   483   

 
 
 

   30%   

 
 
 

   30%   

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

   Product sales   

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

  Terminal  

 
 
 

  110  

 
 
 

  59  

 
 
 

  85%  

 
 
 

  87%  

 
 
 

  339  

 
 
 

  205  

 
 
 

  65%  

 
 
 

  63%  

 
 

  Other  

 
 
 

  48  

 
 
 

  30  

 
 
 

  60%  

 
 
 

  61%  

 
 
 

  143  

 
 
 

  148  

 
 
 

  (4)%  

 
 
 

  (5)%  

 
 

   Total product sales revenue   

 
 
 

   158   

 
 
 

   89   

 
 
 

   77%   

 
 
 

   78%   

 
 
 

   482   

 
 
 

   354   

 
 
 

   36%   

 
 
 

   34%   

 
 

   Total revenue   

 
 
 

   321   

 
 
 

   222   

 
 
 

   45%   

 
 
 

   45%   

 
 
 

   1,112   

 
 
 

   837   

 
 
 

   33%   

 
 
 

   32%   

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

   Operating income (loss)   

 
 
 

   36   

 
 
 

   (42)   

 
 
 

   NA   

 
 
 

   NA   

 
 
 

   43   

 
 
 

   (212)   

 
 
 

   NA   

 
 
 

   NA   

 
 

   Adjusted EBITDA (1)   

 
 
 

   66   

 
 
 

   (10)   

 
 
 

   NA   

 
 
 

   NA   

 
 
 

   173   

 
 
 

   (38)   

 
 
 

   NA   

 
 
 

   NA   

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

   Installed base units   

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

  Casino  

 
 
 

  47,732  

 
 
 

  48,232  

 
 
 

  (1%)  

 
 
 
 
 

  47,732  

 
 
 

  48,232  

 
 
 

  (1%)  

 
 
 
 

  Casino - L/T lease (2)  

 
 
 

  1,117  

 
 
 

  1,068  

 
 
 

  5%  

 
 
 
 
 

  1,117  

 
 
 

  1,068  

 
 
 

  5%  

 
 
 
 

   Total installed base units   

 
 
 

   48,849   

 
 
 

   49,300   

 
 
 

   (1%)   

 
 
 
 
 

   48,849   

 
 
 

   49,300   

 
 
 

   (1%)   

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

   Installed base units (by geography)   

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

  US & Canada  

 
 
 

  33,437  

 
 
 

  34,275  

 
 
 

  (2%)  

 
 
 
 
 

  33,437  

 
 
 

  34,275  

 
 
 

  (2%)  

 
 
 
 

  Rest of world  

 
 
 

  15,412  

 
 
 

  15,025  

 
 
 

  3%  

 
 
 
 
 

  15,412  

 
 
 

  15,025  

 
 
 

  3%  

 
 
 
 

   Total installed base units   

 
 
 

   48,849   

 
 
 

   49,300   

 
 
 

   (1%)   

 
 
 
 
 

   48,849   

 
 
 

   49,300   

 
 
 

   (1%)   

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

   Yields (by geography) (3) , in absolute $   

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

  US & Canada  

 
 
 

  $38.95  

 
 
 

  $27.88  

 
 
 

  40%  

 
 
 
 
 

  $37.62  

 
 
 

  $24.34  

 
 
 

  55%  

 
 
 
 

  Rest of world  

 
 
 

  $5.39  

 
 
 

  $3.33  

 
 
 

  62%  

 
 
 
 
 

  $4.42  

 
 
 

  $3.67  

 
 
 

  20%  

 
 
 
 

   Total yields   

 
 
 

   $28.27   

 
 
 

   $20.32   

 
 
 

   39%   

 
 
 
 
 

   $27.11   

 
 
 

   $18.06   

 
 
 

   50%   

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

   Global machine units sold   

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

  New/expansion  

 
 
 

  (11)  

 
 
 

  666  

 
 
 

  NA  

 
 
 
 
 

  3,049  

 
 
 

  3,046  

 
 
 

  —%  

 
 
 
 

  Replacement  

 
 
 

  7,377  

 
 
 

  3,662  

 
 
 

  101%  

 
 
 
 
 

  20,758  

 
 
 

  11,616  

 
 
 

  79%  

 
 
 
 

   Total machine units sold   

 
 
 

   7,366   

 
 
 

   4,328   

 
 
 

   70%   

 
 
 
 
 

   23,807   

 
 
 

   14,662   

 
 
 

   62%   

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

   US & Canada machine units sold   

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

  New/expansion  

 
 
 

  (452)  

 
 
 

  668  

 
 
 

  NA  

 
 
 
 
 

  1,335  

 
 
 

  2,753  

 
 
 

  (52%)  

 
 
 
 

  Replacement  

 
 
 

  5,547  

 
 
 

  2,636  

 
 
 

  110%  

 
 
 
 
 

  14,759  

 
 
 

  8,009  

 
 
 

  84%  

 
 
 
 

   Total machine units sold   

 
 
 

   5,095   

 
 
 

   3,304   

 
 
 

   54%   

 
 
 
 
 

   16,094   

 
 
 

   10,762   

 
 
 

   50%   

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

    (1)   Non-GAAP measure; see disclaimer on page 6 and reconciliations to the most directly comparable GAAP measure in Appendix for further details   

 
 

    (2)   Excluded from yield calculations due to treatment as sales-type leases   

 
 

    (3)   Excludes Casino L/T lease units due to treatment as sales-type leases, comparability on a Y/Y basis hindered due to fewer active units   

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

   GLOBAL GAMING (Continued)   

 
 
 

   Q4'21   

 
 
 

   Q4'20   

 
 
 

   Y/Y
Change
(%)
 
 

 
 
 

   Constant
Currency
Change
(%) (1)
 
 

 
 
 

   FY'21   

 
 
 

   FY'20   

 
 
 

   Y/Y
Change
(%)
 
 

 
 
 

   Constant
Currency
Change
(%) (1)
 
 

 
 

   Rest of world machine units sold   

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

  New/expansion  

 
 
 

  441  

 
 
 

  (2)  

 
 
 

  NA  

 
 
 
 
 

  1,714  

 
 
 

  293  

 
 
 

  485%  

 
 
 
 

  Replacement  

 
 
 

  1,830  

 
 
 

  1,026  

 
 
 

  78%  

 
 
 
 
 

  5,999  

 
 
 

  3,607  

 
 
 

  66%  

 
 
 
 

   Total  machine units sold   

 
 
 

   2,271   

 
 
 

   1,024   

 
 
 

   122%   

 
 
 
 
 

   7,713   

 
 
 

   3,900   

 
 
 

   98%   

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

   Average selling price (ASP), in absolute $   

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

  US & Canada  

 
 
 

  15,300  

 
 
 

  14,200  

 
 
 

  8%  

 
 
 
 
 

  14,300  

 
 
 

  14,200  

 
 
 

  1%  

 
 
 
 

  Rest of world  

 
 
 

  13,400  

 
 
 

  10,400  

 
 
 

  29%  

 
 
 
 
 

  13,500  

 
 
 

  12,400  

 
 
 

  9%  

 
 
 
 

   Total ASP   

 
 
 

   14,700   

 
 
 

   13,300   

 
 
 

   11%   

 
 
 
 
 

   14,100   

 
 
 

   13,800   

 
 
 

   2%   

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

   Gaming systems revenue   

 
 
 

   42   

 
 
 

   38   

 
 
 

   11%   

 
 
 
 
 

   149   

 
 
 

   136   

 
 
 

   9%   

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

    DIGITAL & BETTING    

 
 
 

   Q4'21   

 
 
 

   Q4'20   

 
 
 

   Y/Y
Change
(%)
 
 

 
 
 

   Constant
Currency
Change
(%) (1)
 
 

 
 
 

   FY'21   

 
 
 

   FY'20   

 
 
 

   Y/Y
Change
(%)
 
 

 
 
 

   Constant
Currency
Change
(%) (1)
 
 

 
 

   Revenue   

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

  Service  

 
 
 

  41  

 
 
 

  33  

 
 
 

  24%  

 
 
 

  22%  

 
 
 

  163  

 
 
 

  114  

 
 
 

  44%  

 
 
 

  39%  

 
 

  Product sales  

 
 
 

  1  

 
 
 

  

 
 
 

  347%  

 
 
 

  348%  

 
 
 

  1  

 
 
 

  1  

 
 
 

  55%  

 
 
 

  55%  

 
 

   Total revenue   

 
 
 

   42   

 
 
 

   33   

 
 
 

   25%   

 
 
 

   24%   

 
 
 

   165   

 
 
 

   115   

 
 
 

   44%   

 
 
 

   40%   

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

   Operating income   

 
 
 

   5   

 
 
 

   3   

 
 
 

   41%   

 
 
 

   19%   

 
 
 

   33   

 
 
 

   6   

 
 
 

   421%   

 
 
 

   383%   

 
 

   Adjusted EBITDA (1)   

 
 
 

   9   

 
 
 

   8   

 
 
 

   12%   

 
 
 

   3%   

 
 
 

   48   

 
 
 

   22   

 
 
 

   116%   

 
 
 

   105%   

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

   CONSOLIDATED   

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

   Revenue (by geography)   

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

  US & Canada  

 
 
 

  591  

 
 
 

  490  

 
 
 

  21%  

 
 
 

  20%  

 
 
 

  2,250  

 
 
 

  1,748  

 
 
 

  29%  

 
 
 

  28%  

 
 

  Italy  

 
 
 

  305  

 
 
 

  266  

 
 
 

  15%  

 
 
 

  20%  

 
 
 

  1,300  

 
 
 

  862  

 
 
 

  51%  

 
 
 

  46%  

 
 

  Rest of world  

 
 
 

  154  

 
 
 

  130  

 
 
 

  19%  

 
 
 

  22%  

 
 
 

  539  

 
 
 

  505  

 
 
 

  7%  

 
 
 

  4%  

 
 

   Total revenue   

 
 
 

   1,050   

 
 
 

   885   

 
 
 

   19%   

 
 
 

   21%   

 
 
 

   4,089   

 
 
 

   3,116   

 
 
 

   31%   

 
 
 

   29%   

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

    (1)   Non-GAAP measure; see disclaimer on page 6 and reconciliations to the most directly comparable GAAP measure in Appendix for further details   

 
 
 

 

 

 

 
 
                                                                                                                                                                                                                                                                                                                            
 

   International Game Technology PLC   

 
 

   Consolidated Statements of Operations   

 
 

    ($ in millions and shares in thousands, except per share amounts)    

 
 

    Unaudited    

 
 
 
 
 
 
 
 
 
 
 

  For the three months ended  

 
 
 

  For the year ended  

 
 
 

  December 31,  

 
 
 

  December 31,  

 
 
 

  2021  

 
 
 

  2020  

 
 
 

  2021  

 
 
 

  2020  

 
 

  Service revenue  

 
 

  850  

 
 
 

  749  

 
 
 

  3,483  

 
 
 

  2,640  

 
 

  Product sales  

 
 

  200  

 
 
 

  136  

 
 
 

  606  

 
 
 

  476  

 
 

   Total revenue   

 
 

  1,050  

 
 
 

  885  

 
 
 

  4,089  

 
 
 

  3,115  

 
 
 
 
 
 
 
 
 
 

  Cost of services  

 
 

  452  

 
 
 

  440  

 
 
 

  1,754  

 
 
 

  1,634  

 
 

  Cost of product sales  

 
 

  124  

 
 
 

  103  

 
 
 

  377  

 
 
 

  346  

 
 

  Selling, general and administrative  

 
 

  222  

 
 
 

  196  

 
 
 

  810  

 
 
 

  707  

 
 

  Research and development  

 
 

  59  

 
 
 

  51  

 
 
 

  238  

 
 
 

  191  

 
 

  Restructuring  

 
 

  7  

 
 
 

  (2)  

 
 
 

  6  

 
 
 

  45  

 
 

  Goodwill impairment  

 
 

  

 
 
 

  

 
 
 

  

 
 
 

  296  

 
 

  Other operating expense  

 
 

  

 
 
 

  1  

 
 
 

  1  

 
 
 

  4  

 
 

   Total operating expenses   

 
 

  864  

 
 
 

  789  

 
 
 

  3,187  

 
 
 

  3,223  

 
 
 
 
 
 
 
 
 
 

   Operating income (loss)   

 
 

  186  

 
 
 

  96  

 
 
 

  902  

 
 
 

  (107)  

 
 
 
 
 
 
 
 
 
 

  Interest expense, net  

 
 

  77  

 
 
 

  101  

 
 
 

  341  

 
 
 

  398  

 
 

  Foreign exchange (gain) loss, net  

 
 

  (4)  

 
 
 

  155  

 
 
 

  (66)  

 
 
 

  309  

 
 

  Other expense (income), net  

 
 

  2  

 
 
 

  (1)  

 
 
 

  98  

 
 
 

  33  

 
 

   Total non-operating expenses   

 
 

  75  

 
 
 

  255  

 
 
 

  373  

 
 
 

  740  

 
 

  Income (loss) from continuing operations before
provision for income taxes
 

 
 

  111  

 
 
 

  (159)  

 
 
 

  529  

 
 
 

  (848)  

 
 

  Provision for income taxes  

 
 

  56  

 
 
 

  73  

 
 
 

  274  

 
 
 

  28  

 
 

   Income (loss) from continuing operations   

 
 

  55  

 
 
 

  (232)  

 
 
 

  255  

 
 
 

  (875)  

 
 

  Income from discontinued operations, net of tax  

 
 

  

 
 
 

  12  

 
 
 

  24  

 
 
 

  37  

 
 

  Gain on sale of discontinued operations, net of tax  

 
 

  

 
 
 

  

 
 
 

  391  

 
 
 

  

 
 

   Income from discontinued operations   

 
 

  

 
 
 

  12  

 
 
 

  415  

 
 
 

  37  

 
 

   Net income (loss)   

 
 

  55  

 
 
 

  (220)  

 
 
 

  670  

 
 
 

  (839)  

 
 

  Less: Net income attributable to non-controlling
interests from continuing operations
 

 
 

  35  

 
 
 

  24  

 
 
 

  190  

 
 
 

  64  

 
 

  Less: Net (loss) income attributable to non-controlling
interests from discontinued operations
 

 
 

  

 
 
 

  (2)  

 
 
 

  (2)  

 
 
 

  (5)  

 
 

   Net income (loss) attributable to IGT PLC   

 
 

  19  

 
 
 

  (242)  

 
 
 

  482  

 
 
 

  (898)  

 
 
 
 
 
 
 
 
 
 

   Net income (loss) from continuing operations
attributable to IGT PLC per common share - basic
 
 

 
 

  0.10  

 
 
 

  (1.25)  

 
 
 

  0.32  

 
 
 

  (4.59)  

 
 

   Net income (loss) from continuing operations
attributable to IGT PLC per common share - diluted
 
 

 
 

  0.09  

 
 
 

  (1.25)  

 
 
 

  0.31  

 
 
 

  (4.59)  

 
 

   Net income (loss) attributable to IGT PLC per
common share - basic
 
 

 
 

  0.10  

 
 
 

  (1.18)  

 
 
 

  2.35  

 
 
 

  (4.39)  

 
 

   Net income (loss) attributable to IGT PLC per
common share - diluted
 
 

 
 

  0.09  

 
 
 

  (1.18)  

 
 
 

  2.33  

 
 
 

  (4.39)  

 
 

   Weighted-average shares - basic   

 
 

  204,673  

 
 
 

  204,857  

 
 
 

  204,954  

 
 
 

  204,725  

 
 

   Weighted-average shares - diluted   

 
 

  206,996  

 
 
 

  204,857  

 
 
 

  206,795  

 
 
 

  204,725  

 
 
 

 

 

 

 
 
                                                                                                                                                                                                              
 

   International Game Technology PLC   

 
 
 

   Consolidated Balance Sheets   

 
 
 

    ($ in millions)    

 
 
 

    Unaudited    

 
 
 
 
 
 
 
 
 

  December 31,  

 
 
 
 

  2021  

 
 
 

  2020  

 
 
 

   Assets   

 
 
 
 
 
 

  Current assets:  

 
 
 
 
 
 

  Cash and cash equivalents  

 
 

  591  

 
 
 

  907  

 
 
 

  Restricted cash and cash equivalents  

 
 

  218  

 
 
 

  199  

 
 
 

  Trade and other receivables, net  

 
 

  903  

 
 
 

  846  

 
 
 

  Inventories  

 
 

  183  

 
 
 

  169  

 
 
 

  Other current assets  

 
 

  589  

 
 
 

  480  

 
 
 

  Assets held for sale  

 
 

  4  

 
 
 

  839  

 
 
 

   Total current assets   

 
 

  2,487  

 
 
 

  3,440  

 
 
 

  Systems, equipment and other assets related to contracts, net  

 
 

  937  

 
 
 

  1,068  

 
 
 

  Property, plant and equipment, net  

 
 

  119  

 
 
 

  132  

 
 
 

  Operating lease right-of-use assets  

 
 

  283  

 
 
 

  288  

 
 
 

  Goodwill  

 
 

  4,656  

 
 
 

  4,713  

 
 
 

  Intangible assets, net  

 
 

  1,413  

 
 
 

  1,577  

 
 
 

  Other non-current assets  

 
 

  1,429  

 
 
 

  1,774  

 
 
 

   Total non-current assets   

 
 

  8,836  

 
 
 

  9,552  

 
 
 

   Total assets   

 
 

  11,322  

 
 
 

  12,992  

 
 
 
 
 
 
 
 

   Liabilities and shareholders' equity   

 
 
 
 
 
 

  Current liabilities:  

 
 
 
 
 
 

  Accounts payable  

 
 

  1,035  

 
 
 

  1,126  

 
 
 

  Current portion of long-term debt  

 
 

  

 
 
 

  393  

 
 
 

  Short-term borrowings  

 
 

  52  

 
 
 

  

 
 
 

  Other current liabilities  

 
 

  828  

 
 
 

  846  

 
 
 

  Liabilities held for sale  

 
 

  

 
 
 

  250  

 
 
 

   Total current liabilities   

 
 

  1,914  

 
 
 

  2,615  

 
 
 

  Long-term debt, less current portion  

 
 

  6,477  

 
 
 

  7,857  

 
 
 

  Deferred income taxes  

 
 

  368  

 
 
 

  333  

 
 
 

  Operating lease liabilities  

 
 

  269  

 
 
 

  266  

 
 
 

  Other non-current liabilities  

 
 

  323  

 
 
 

  360  

 
 
 

   Total non-current liabilities   

 
 

  7,437  

 
 
 

  8,816  

 
 
 

   Total liabilities   

 
 

  9,351  

 
 
 

  11,431  

 
 
 

   Commitments and contingencies   

 
 
 
 
 
 

  IGT PLC's shareholders' equity  

 
 

  1,282  

 
 
 

  777  

 
 
 

  Non-controlling interests  

 
 

  689  

 
 
 

  784  

 
 
 

   Total shareholders' equity   

 
 

  1,971  

 
 
 

  1,561  

 
 
 

   Total liabilities and shareholders' equity   

 
 

  11,322  

 
 
 

  12,992  

 
 
 
 

 

 

 

 
 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
 

   International Game Technology PLC   

 
 

   Consolidated Statements of Cash Flows   

 
 

    ($ in millions)    

 
 

    Unaudited    

 
 
 
 
 
 
 
 
 
 
 

  For the three months ended  

 
 
 

  For the year ended  

 
 
 

  December 31,  

 
 
 

  December 31,  

 
 
 

  2021  

 
 
 

  2020  

 
 
 

  2021  

 
 
 

  2020  

 
 

   Cash flows from operating activities   

 
 
 
 
 
 
 
 
 

  Net income (loss)  

 
 

  55  

 
 
 

  (220)  

 
 
 

  670  

 
 
 

  (839)  

 
 

  Less: Income from discontinued operations  

 
 

  

 
 
 

  12  

 
 
 

  415  

 
 
 

  37  

 
 

  Adjustments to reconcile net income (loss) from continuing operations to net cash provided by
operating activities from continuing operations:
 

 
 
 
 
 
 
 
 
 

  Depreciation  

 
 

  79  

 
 
 

  90  

 
 
 

  325  

 
 
 

  355  

 
 

  Amortization of upfront license fees  

 
 

  53  

 
 
 

  55  

 
 
 

  216  

 
 
 

  210  

 
 

  Amortization  

 
 

  51  

 
 
 

  51  

 
 
 

  201  

 
 
 

  211  

 
 

  Loss on extinguishment of debt  

 
 

  

 
 
 

  

 
 
 

  92  

 
 
 

  28  

 
 

  Deferred income taxes  

 
 

  (17)  

 
 
 

  28  

 
 
 

  38  

 
 
 

  (78)  

 
 

  Stock-based compensation  

 
 

  13  

 
 
 

  4  

 
 
 

  35  

 
 
 

  (7)  

 
 

  Debt issuance cost amortization  

 
 

  4  

 
 
 

  6  

 
 
 

  19  

 
 
 

  21  

 
 

  Goodwill impairment  

 
 

  

 
 
 

  

 
 
 

  

 
 
 

  296  

 
 

  Gain on sale of assets  

 
 

  (3)  

 
 
 

  

 
 
 

  (9)  

 
 
 

  

 
 

  Foreign exchange (gain) loss, net  

 
 

  (4)  

 
 
 

  155  

 
 
 

  (66)  

 
 
 

  309  

 
 

  Other non-cash items, net  

 
 

  2  

 
 
 

  (1)  

 
 
 

  7  

 
 
 

  (2)  

 
 

  Changes in operating assets and liabilities, excluding the effects of acquisitions and
dispositions:
 

 
 
 
 
 
 
 
 
 

  Trade and other receivables  

 
 

  89  

 
 
 

  (95)  

 
 
 

  (95)  

 
 
 

  74  

 
 

  Inventories  

 
 

  (1)  

 
 
 

  26  

 
 
 

  (13)  

 
 
 

  17  

 
 

  Accounts payable  

 
 

  41  

 
 
 

  49  

 
 
 

  (36)  

 
 
 

  5  

 
 

  Other assets and liabilities  

 
 

  37  

 
 
 

  116  

 
 
 

  41  

 
 
 

  31  

 
 

   Net cash provided by operating activities from continuing operations   

 
 

  396  

 
 
 

  251  

 
 
 

  1,010  

 
 
 

  595  

 
 

   Net cash provided by (used in) operating activities from discontinued operations   

 
 

  

 
 
 

  4  

 
 
 

  (31)  

 
 
 

  271  

 
 

   Net cash provided by operating activities   

 
 

  396  

 
 
 

  255  

 
 
 

  978  

 
 
 

  866  

 
 
 
 
 
 
 
 
 
 

   Cash flows from investing activities   

 
 
 
 
 
 
 
 
 

  Capital expenditures  

 
 

  (71)  

 
 
 

  (50)  

 
 
 

  (238)  

 
 
 

  (255)  

 
 

  Proceeds from sale of assets  

 
 

  6  

 
 
 

  3  

 
 
 

  21  

 
 
 

  9  

 
 

  Other  

 
 

  

 
 
 

  

 
 
 

  1  

 
 
 

  12  

 
 

   Net cash used in investing activities from continuing operations   

 
 

  (64)  

 
 
 

  (48)  

 
 
 

  (216)  

 
 
 

  (233)  

 
 

   Net cash (used in) provided by investing activities from discontinued operations   

 
 

  

 
 
 

  (14)  

 
 
 

  852  

 
 
 

  (35)  

 
 

   Net cash (used in) provided by investing activities   

 
 

  (64)  

 
 
 

  (62)  

 
 
 

  636  

 
 
 

  (269)  

 
 
 
 
 
 
 
 
 
 

   Cash flows from financing activities   

 
 
 
 
 
 
 
 
 

  Principal payments on long-term debt  

 
 

  

 
 
 

  

 
 
 

  (2,846)  

 
 
 

  (959)  

 
 

  Payments in connection with the extinguishment of debt  

 
 

  

 
 
 

  

 
 
 

  (85)  

 
 
 

  (25)  

 
 

  Net receipts from (payments of) financial liabilities  

 
 

  2  

 
 
 

  (29)  

 
 
 

  (50)  

 
 
 

  67  

 
 

  Payments of debt issuance costs  

 
 

  

 
 
 

  

 
 
 

  (14)  

 
 
 

  (22)  

 
 

  Net (repayments of) proceeds from Revolving Credit Facilities  

 
 

  

 
 
 

  (175)  

 
 
 

  17  

 
 
 

  (29)  

 
 

  Net proceeds from (payments of) short-term borrowings  

 
 

  33  

 
 
 

  

 
 
 

  51  

 
 
 

  (7)  

 
 

  Proceeds from long-term debt  

 
 

  

 
 
 

  

 
 
 

  1,339  

 
 
 

  750  

 
 

  Repurchases of common stock  

 
 

  (41)  

 
 
 

  

 
 
 

  (41)  

 
 
 

  

 
 

  Dividends paid  

 
 

  (41)  

 
 
 

  

 
 
 

  (41)  

 
 
 

  (41)  

 
 

  Dividends paid - non-controlling interests  

 
 

  (2)  

 
 
 

  

 
 
 

  (91)  

 
 
 

  (136)  

 
 

  Return of capital - non-controlling interests  

 
 

  (34)  

 
 
 

  (32)  

 
 
 

  (127)  

 
 
 

  (32)  

 
 

  Capital increase - non-controlling interests  

 
 

  

 
 
 

  5  

 
 
 

  12  

 
 
 

  8  

 
 

  Other  

 
 

  (10)  

 
 
 

  (3)  

 
 
 

  (23)  

 
 
 

  (11)  

 
 

   Net cash used in financing activities   

 
 

  (94)  

 
 
 

  (234)  

 
 
 

  (1,898)  

 
 
 

  (438)  

 
 
 
 
 
 
 
 
 
 

  Net increase (decrease) in cash and cash equivalents and restricted cash and cash equivalents  

 
 

  238  

 
 
 

  (40)  

 
 
 

  (284)  

 
 
 

  159  

 
 

  Effect of exchange rate changes on cash and cash equivalents and restricted cash and cash
equivalents
 

 
 

  (17)  

 
 
 

  30  

 
 
 

  (37)  

 
 
 

  76  

 
 

  Cash and cash equivalents and restricted cash and cash equivalents at the beginning of the
period
 

 
 

  588  

 
 
 

  1,140  

 
 
 

  1,129  

 
 
 

  894  

 
 

  Cash and cash equivalents and restricted cash and cash equivalents at the end of the period  

 
 

  808  

 
 
 

  1,129  

 
 
 

  808  

 
 
 

  1,129  

 
 

  Less: Cash and cash equivalents and restricted cash and cash equivalents of discontinued
operations
 

 
 

  

 
 
 

  23  

 
 
 

  

 
 
 

  23  

 
 

  Cash and cash equivalents and restricted cash and cash equivalents at the end of the period of
continuing operations
 

 
 

  808  

 
 
 

  1,106  

 
 
 

  808  

 
 
 

  1,106  

 
 
 
 
 
 
 
 
 
 

    Supplemental Cash Flow Information:    

 
 
 
 
 
 
 
 
 

  Interest paid  

 
 

  46  

 
 
 

  37  

 
 
 

  369  

 
 
 

  410  

 
 

  Income taxes paid  

 
 

  85  

 
 
 

  51  

 
 
 

  188  

 
 
 

  89  

 
 
 

 

 

 

 
 
                                                                                                                                                   
 

   International Game Technology PLC   

 
 

   Net Debt   

 
 

    ($ in millions)    

 
 

    Unaudited    

 
 
 
 
 
 
 
 
 

  December 31,  

 
 
 
 

  2021  

 
 
 

  2020  

 
 

  6.250% Senior Secured U.S. Dollar Notes due February 2022  

 
 
 

  

 
 
 

  1,004  

 
 

  4.750% Senior Secured Euro Notes due February 2023  

 
 
 

  

 
 
 

  1,038  

 
 

  5.350% Senior Secured U.S. Dollar Notes due October 2023  

 
 
 

  61  

 
 
 

  61  

 
 

  3.500% Senior Secured Euro Notes due July 2024  

 
 
 

  564  

 
 
 

  610  

 
 

  6.500% Senior Secured U.S. Dollar Notes due February 2025  

 
 
 

  1,093  

 
 
 

  1,092  

 
 

  4.125% Senior Secured U.S. Dollar Notes due April 2026  

 
 
 

  744  

 
 
 

  

 
 

  3.500% Senior Secured Euro Notes due June 2026  

 
 
 

  844  

 
 
 

  913  

 
 

  6.250% Senior Secured U.S. Dollar Notes due January 2027  

 
 
 

  745  

 
 
 

  744  

 
 

  2.375% Senior Secured Euro Notes due April 2028  

 
 
 

  562  

 
 
 

  608  

 
 

  5.250% Senior Secured U.S. Dollar Notes due January 2029  

 
 
 

  744  

 
 
 

  743  

 
 

   Senior Secured Notes   

 
 
 

  5,357  

 
 
 

  6,813  

 
 
 
 
 
 
 

  Euro Term Loan Facilities due January 2027  

 
 
 

  1,121  

 
 
 

  1,044  

 
 

   Long-term debt, less current portion   

 
 
 

  6,477  

 
 
 

  7,857  

 
 
 
 
 
 
 

  Euro Term Loan Facilities due January 2027  

 
 
 

  

 
 
 

  393  

 
 

   Current portion of long-term debt   

 
 
 

  

 
 
 

  393  

 
 
 
 
 
 
 

  Short-term borrowings  

 
 
 

  52  

 
 
 

  

 
 

   Total debt   

 
 
 

  6,529  

 
 
 

  8,250  

 
 
 
 
 
 
 

  Less: Cash and cash equivalents  

 
 
 

  591  

 
 
 

  907  

 
 

  Less: Debt issuance costs, net - Revolving Credit Facilities due July 2024  

 
 
 

  17  

 
 
 

  24  

 
 

   Net debt   

 
 
 

  5,922  

 
 
 

  7,319  

 
 
 
 
 
 
 

  Note: Net debt is a non-GAAP financial measure  

 
 
 
 
 
 
 

 

 

 

 
 
                                                                                                                                                                                                                                                                                                                           
 

   International Game Technology PLC   

 
 

   Reconciliation of Non-GAAP Financial Measures   

 
 

    ($ in millions)    

 
 

    Unaudited    

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

  For the three months ended December 31, 2021  

 
 
 
 

  Global
Lottery
 

 
 
 

  Global
Gaming
 

 
 
 

  Digital &
Betting
 

 
 
 

  Business
Segment
Total
 

 
 
 

  Corporate
and Other
 

 
 
 

  Total IGT
PLC
 

 
 

  Income from continuing operations  

 
 
 
 
 
 
 
 
 
 
 
 
 

  55  

 
 

  Provision for income taxes  

 
 
 
 
 
 
 
 
 
 
 
 
 

  56  

 
 

  Interest expense, net  

 
 
 
 
 
 
 
 
 
 
 
 
 

  77  

 
 

  Foreign exchange gain, net  

 
 
 
 
 
 
 
 
 
 
 
 
 

  (4)  

 
 

  Other non-operating expense, net  

 
 
 
 
 
 
 
 
 
 
 
 
 

  2  

 
 

  Operating income (loss)  

 
 
 

  217  

 
 
 

  36  

 
 
 

  5  

 
 
 

  258  

 
 
 

  (72)  

 
 
 

  186  

 
 

  Depreciation  

 
 
 

  47  

 
 
 

  29  

 
 
 

  4  

 
 
 

  79  

 
 
 

  

 
 
 

  79  

 
 

  Amortization - service revenue (1)  

 
 
 

  53  

 
 
 

  

 
 
 

  

 
 
 

  53  

 
 
 

  

 
 
 

  53  

 
 

  Amortization - non-purchase accounting  

 
 
 

  9  

 
 
 

  1  

 
 
 

  

 
 
 

  11  

 
 
 

  1  

 
 
 

  12  

 
 

  Amortization - purchase accounting  

 
 
 

  

 
 
 

  

 
 
 

  

 
 
 

  

 
 
 

  39  

 
 
 

  39  

 
 

  Restructuring  

 
 
 

  8  

 
 
 

  (4)  

 
 
 

  

 
 
 

  4  

 
 
 

  3  

 
 
 

  7  

 
 

  Stock-based compensation  

 
 
 

  3  

 
 
 

  4  

 
 
 

  

 
 
 

  7  

 
 
 

  6  

 
 
 

  13  

 
 

   Adjusted EBITDA   

 
 
 

   336   

 
 
 

   66   

 
 
 

   9   

 
 
 

   411   

 
 
 

   (24)   

 
 
 

   387   

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

  Cash flows from operating activities - continuing
operations
 

 
 
 
 
 
 
 
 
 
 
 
 
 

  396  

 
 

  Capital expenditures  

 
 
 
 
 
 
 
 
 
 
 
 
 

  (71)  

 
 

   Free Cash Flow   

 
 
 
 
 
 
 
 
 
 
 
 
 

   326   

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

   (1) Includes amortization of upfront license fees  

 
 
 
 
 
 
 
 
 
 
 

 

 

 

 
 
                                                                                                                                                                                                                                                                                                                                                 
 

   International Game Technology PLC   

 
 

   Reconciliation of Non-GAAP Financial Measures   

 
 

    ($ in millions)    

 
 

    Unaudited    

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

  For the three months ended December 31, 2020  

 
 
 
 

  Global
Lottery
 

 
 
 

  Global
Gaming
 

 
 
 

  Digital &
Betting
 

 
 
 

  Business
Segment
Total
 

 
 
 

  Corporate
and Other
 

 
 
 

  Total IGT
PLC
 

 
 

  Loss from continuing operations  

 
 
 
 
 
 
 
 
 
 
 
 
 

  (232)  

 
 

  Provision for income taxes  

 
 
 
 
 
 
 
 
 
 
 
 
 

  73  

 
 

  Interest expense, net  

 
 
 
 
 
 
 
 
 
 
 
 
 

  101  

 
 

  Foreign exchange loss, net  

 
 
 
 
 
 
 
 
 
 
 
 
 

  155  

 
 

  Other non-operating income, net  

 
 
 
 
 
 
 
 
 
 
 
 
 

  (1)  

 
 

  Operating income (loss)  

 
 
 

  195  

 
 
 

  (42)  

 
 
 

  3  

 
 
 

  156  

 
 
 

  (60)  

 
 
 

  96  

 
 

  Depreciation  

 
 
 

  54  

 
 
 

  32  

 
 
 

  4  

 
 
 

  90  

 
 
 

  

 
 
 

  90  

 
 

  Amortization - service revenue (1)  

 
 
 

  55  

 
 
 

  

 
 
 

  

 
 
 

  55  

 
 
 

  

 
 
 

  55  

 
 

  Amortization - non-purchase accounting  

 
 
 

  8  

 
 
 

  2  

 
 
 

  

 
 
 

  10  

 
 
 

  1  

 
 
 

  11  

 
 

  Amortization - purchase accounting  

 
 
 

  

 
 
 

  

 
 
 

  

 
 
 

  

 
 
 

  40  

 
 
 

  40  

 
 

  Restructuring  

 
 
 

  

 
 
 

  (2)  

 
 
 

  1  

 
 
 

  (2)  

 
 
 

  

 
 
 

  (2)  

 
 

  Stock-based compensation  

 
 
 

  1  

 
 
 

  1  

 
 
 

  

 
 
 

  2  

 
 
 

  2  

 
 
 

  4  

 
 

  Other (2)  

 
 
 

  

 
 
 

  

 
 
 

  

 
 
 

  

 
 
 

  1  

 
 
 

  1  

 
 

   Adjusted EBITDA   

 
 
 

   313   

 
 
 

   (10)   

 
 
 

   8   

 
 
 

   311   

 
 
 

   (16)   

 
 
 

   295   

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

  Cash flows from operating activities - continuing
operations
 

 
 
 
 
 
 
 
 
 
 
 
 
 

  251  

 
 

  Capital expenditures  

 
 
 
 
 
 
 
 
 
 
 
 
 

  (50)  

 
 

   Free Cash Flow   

 
 
 
 
 
 
 
 
 
 
 
 
 

   201   

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

   (1) Includes amortization of upfront license fees  

 
 
 
 
 
 
 
 
 
 

   (2) Primarily includes transaction-related costs  

 
 
 
 
 
 
 
 
 
 
 

 

 

 

 
 
                                                                                                                                                                                                                                                                                                                                                  
 

   International Game Technology PLC   

 
 

   Reconciliation of Non-GAAP Financial Measures   

 
 

    ($ in millions)    

 
 

    Unaudited    

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

  For the year ended December 31, 2021  

 
 
 
 

  Global
Lottery
 

 
 
 

  Global
Gaming
 

 
 
 

  Digital &
Betting
 

 
 
 

  Business
Segment
Total
 

 
 
 

  Corporate
and Other
 

 
 
 

  Total IGT
PLC
 

 
 

  Income from continuing operations  

 
 
 
 
 
 
 
 
 
 
 
 
 

  255  

 
 

  Provision for income taxes  

 
 
 
 
 
 
 
 
 
 
 
 
 

  274  

 
 

  Interest expense, net  

 
 
 
 
 
 
 
 
 
 
 
 
 

  341  

 
 

  Foreign exchange gain, net  

 
 
 
 
 
 
 
 
 
 
 
 
 

  (66)  

 
 

  Other non-operating expense, net  

 
 
 
 
 
 
 
 
 
 
 
 
 

  98  

 
 

  Operating income (loss)  

 
 
 

  1,088  

 
 
 

  43  

 
 
 

  33  

 
 
 

  1,164  

 
 
 

  (262)  

 
 
 

  902  

 
 

  Depreciation  

 
 
 

  191  

 
 
 

  121  

 
 
 

  15  

 
 
 

  326  

 
 
 

  (1)  

 
 
 

  325  

 
 

  Amortization - service revenue (1)  

 
 
 

  216  

 
 
 

  

 
 
 

  

 
 
 

  216  

 
 
 

  

 
 
 

  216  

 
 

  Amortization - non-purchase accounting  

 
 
 

  34  

 
 
 

  5  

 
 
 

  

 
 
 

  40  

 
 
 

  3  

 
 
 

  43  

 
 

  Amortization - purchase accounting  

 
 
 

  

 
 
 

  

 
 
 

  

 
 
 

  

 
 
 

  158  

 
 
 

  158  

 
 

  Restructuring  

 
 
 

  8  

 
 
 

  (4)  

 
 
 

  (1)  

 
 
 

  3  

 
 
 

  2  

 
 
 

  6  

 
 

  Stock-based compensation  

 
 
 

  8  

 
 
 

  8  

 
 
 

  1  

 
 
 

  17  

 
 
 

  18  

 
 
 

  35  

 
 

  Other (2)  

 
 
 

  

 
 
 

  

 
 
 

  

 
 
 

  

 
 
 

  1  

 
 
 

  1  

 
 

   Adjusted EBITDA   

 
 
 

   1,545   

 
 
 

   173   

 
 
 

   48   

 
 
 

   1,766   

 
 
 

   (80)   

 
 
 

   1,686   

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

  Cash flows from operating activities - continuing
operations
 

 
 
 
 
 
 
 
 
 
 
 
 
 

  1,010  

 
 

  Capital expenditures  

 
 
 
 
 
 
 
 
 
 
 
 
 

  (238)  

 
 

   Free Cash Flow   

 
 
 
 
 
 
 
 
 
 
 
 
 

   771   

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

   (1) Includes amortization of upfront license fees  

 
 
 
 
 
 
 
 
 
 

   (2) Primarily includes transaction-related costs  

 
 
 
 
 
 
 
 
 
 
 
 

 

 

 

 
 
                                                                                                                                                                                                                                                                                                                                                              
 

   International Game Technology PLC   

 
 

   Reconciliation of Non-GAAP Financial Measures   

 
 

    ($ in millions)    

 
 

    Unaudited    

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

  For the year ended December 31, 2020  

 
 
 
 

  Global
Lottery
 

 
 
 

  Global
Gaming
 

 
 
 

  Digital &
Betting
 

 
 
 

  Business
Segment
Total
 

 
 
 

  Corporate
and Other
 

 
 
 

  Total IGT
PLC
 

 
 

  Loss from continuing operations  

 
 
 
 
 
 
 
 
 
 
 
 
 

  (875)  

 
 

  Provision for income taxes  

 
 
 
 
 
 
 
 
 
 
 
 
 

  28  

 
 

  Interest expense, net  

 
 
 
 
 
 
 
 
 
 
 
 
 

  398  

 
 

  Foreign exchange loss, net  

 
 
 
 
 
 
 
 
 
 
 
 
 

  309  

 
 

  Other non-operating expense, net  

 
 
 
 
 
 
 
 
 
 
 
 
 

  33  

 
 

  Operating income (loss)  

 
 
 

  642  

 
 
 

  (212)  

 
 
 

  6  

 
 
 

  436  

 
 
 

  (544)  

 
 
 

  (107)  

 
 

  Goodwill impairment  

 
 
 

  

 
 
 

  

 
 
 

  

 
 
 

  

 
 
 

  296  

 
 
 

  296  

 
 

  Depreciation  

 
 
 

  201  

 
 
 

  138  

 
 
 

  14  

 
 
 

  354  

 
 
 

  1  

 
 
 

  355  

 
 

  Amortization - service revenue (1)  

 
 
 

  210  

 
 
 

  

 
 
 

  

 
 
 

  210  

 
 
 

  

 
 
 

  210  

 
 

  Amortization - non-purchase accounting  

 
 
 

  30  

 
 
 

  7  

 
 
 

  

 
 
 

  38  

 
 
 

  3  

 
 
 

  41  

 
 

  Amortization - purchase accounting  

 
 
 

  

 
 
 

  

 
 
 

  

 
 
 

  

 
 
 

  170  

 
 
 

  170  

 
 

  Restructuring  

 
 
 

  5  

 
 
 

  32  

 
 
 

  2  

 
 
 

  39  

 
 
 

  6  

 
 
 

  45  

 
 

  Stock-based compensation  

 
 
 

  (3)  

 
 
 

  (4)  

 
 
 

  

 
 
 

  (7)  

 
 
 

  

 
 
 

  (7)  

 
 

  Other (2)  

 
 
 

  

 
 
 

  

 
 
 

  

 
 
 

  

 
 
 

  4  

 
 
 

  4  

 
 

   Adjusted EBITDA   

 
 
 

   1,086   

 
 
 

   (38)   

 
 
 

   22   

 
 
 

   1,070   

 
 
 

   (62)   

 
 
 

   1,008   

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

  Cash flows from operating activities - continuing
operations
 

 
 
 
 
 
 
 
 
 
 
 
 
 

  595  

 
 

  Capital expenditures  

 
 
 
 
 
 
 
 
 
 
 
 
 

  (255)  

 
 

   Free Cash Flow   

 
 
 
 
 
 
 
 
 
 
 
 
 

   340   

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

   (1) Includes amortization of upfront license fees  

 
 
 
 
 
 
 
 
 
 

   (2) Primarily includes transaction-related costs  

 
 
 
 
 
 
 
 
 
 
 

 

 

 

 
 
 

 Cision View original content to download multimedia: https://www.prnewswire.com/news-releases/international-game-technology-plc-reports-fourth-quarter-and-full-year-2021-results-301492207.html  

 

SOURCE International Game Technology PLC

 
 

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Mobile Gaming Stocks: 10 Biggest Companies in 2025

According to market intelligence firm Newzoo, global gaming revenue came in at US$177.9 billion in 2024, with mobile gaming accounting for more than half of that amount at US$97.6 billion.

The firm states that the mobile gaming market has reached maturity but still achieved higher growth than the console and PC segments, with revenue up by 2.8 percent globally last year. The regions driving that growth are North America and Europe, where markets rebounded due to big releases and diversified revenue streams.

Mobile games are typically accessed through three core operating systems: Apple's (NASDAQ:AAPL) iOS, Microsoft's (NASDAQ:MSFT) Windows and Alphabet's (NASDAQ:GOOGL) Android. Notably, the iOS App Store generated nearly 37 percent of its revenue from mobile gaming apps in 2024, totaling US$3.83 billion. However, figures show that most mobile games on the market today are developed for Android, representing 75 percent of total mobile game downloads.

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NorthStar Gaming Announces Revocation of Management Cease Trade Order

NorthStar Gaming Announces Revocation of Management Cease Trade Order

NorthStar Gaming Holdings Inc. (TSXV: BET) (OTCQB: NSBBF) ("NorthStar" or the "Company") is pleased to announce that effective May 16, 2025, the Ontario Securities Commission has revoked the temporary management cease trade order ("MCTO") it had previously granted to the Company on May 8, 2025 under National Policy 12-203 Management Cease Trade Orders, as the Company successfully completed the filing of its annual audited financial statements, management's discussion and analysis, and related certifications for the year ended December 31, 2024 (collectively, the "Annual Filings") on May 14, 2025.

The revocation of the MCTO means members of management are no longer prevented from trading the Company's securities. All of the Annual Filings are available under the Company's profile on SEDAR+ at www.sedarplus.ca.

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NorthStar Gaming Reports Year-End 2024 Results

NorthStar Gaming Reports Year-End 2024 Results

 

Annual Revenue Growth of 57%, Gross Margin up 91%

 

NorthStar Gaming Holdings Inc. (TSXV: BET) (OTCQB: NSBBF) ("NorthStar" or the "Company") today announced its financial results for the three months and year ended December 31, 2024. The Company also announced that it will discuss the results on an investor webinar to be held Thursday, May 15, 2025 at 11:00am (please see below for details). All dollar figures are quoted in Canadian dollars.

 

"We delivered strong financial results in 2024, highlighted by 57% growth in revenue and a 91% increase in gross margin. At the same time, we held marketing expense to a 10% increase and reduced G&A expense, demonstrating the continually improving operating leverage built into our business model," said Michael Moskowitz, Chair and CEO of NorthStar. "Equally important, our team rolled out innovations in both our sportsbook and casino that have further differentiated NorthStar Bets as a premium offering and helped drive the retention of, and engagement with, our loyal customers."

 

Restatement of Results

 

The comparative results for the three months and twelve months ended December 31, 2023 have been restated in the financial statements and management's discussion & analysis ("FY2024 MD&A") for the year ended December 31, 2024 to include additional merchant fees and player bonus expenses which were not captured in the previously published financial statements (note 2 of the Financial Statements for the year ended December 31, 2024). The Company's payment processor deducted the additional merchant fee from the daily remittances to the Company, and the deductions were not accounted for by the Company. These additional fees were identified as part of the year-end reconciliation of the amount due from the payment processor, and the financial statements and FY2024 MD&A have been adjusted accordingly. These restatements did not impact the cash balances reported for the years ended December 31, 2022, 2023, or 2024. However, they did result in adjustments to the reported current asset balances for those periods.

 

Financial Highlights for the Fourth Quarter Ended December 31, 2024 ("Q4 2024"):

 
  •  Total Wagers1 at Northstarbets.ca were $303.0 million in Q4 2024, a 42% increase compared to $213.3 million in Q4 2023.
  •  
  •  Gross Gaming Revenue2 at Northstarbets.ca was $10.0 million in Q4 2024, a 31.6% increase from $7.6 million in Q4 2023.
  •  
  •  Revenue2 was $9.5 million in Q4 2024, a 51% increase from $6.3 million in Q4 2023. Revenue in Q4 2024 includes $1.5 million of managed services revenue, which compares to $0.2 million in Q4 2023.
  •  
  •  Gross Margin was $3.6 million, a 71% increase from $2.1 million in Q4 2023, while the Gross Margin percentage increased to 38.1%, up from 33.6% in Q4 2023.
  •  
  •  Profit/(loss) before marketing and other expenses1 was $0.6 million in Q4 2024 compared to a loss of $2.5 million in Q4 2023, indicating that gross margin is now sufficient to cover the Company's overhead expenses.
  •  

Financial Highlights for the Year Ended December 31, 2024 ("FY 2024"):

 
  •  Total Wagers2 at Northstarbets.ca were $980.0 million in FY 2024, a 51% increase compared to $648.8 million in the year ended December 31, 2023.
  •  
  •  Gross Gaming Revenue2 at Northstarbets.ca was $34.0 million in FY 2024, a 51% increase from $22.5 million in FY 2023.
  •  
  •  Revenue2 was $29.6 million in FY 2024, a 57% increase from $18.8 million in FY 2023. Revenue in FY 2024 includes $2.3 million of managed services revenue, which compares to $0.5 million in FY 2023.3
  •  
  •  Gross Margin was $10.5 million, marking a 91% increase from $5.5 million in FY 2023, with the Gross Margin increasing to 35.7%, up from 29.3% in FY 2023.
  •  
  •  Profit/(loss) before marketing and other expenses1 was $0.1 million in FY 2024 compared to a loss of $6.7 million in YTD 2023, an improvement of $6.8 million.
  •  

"Early in 2025, we completed our most significant fund-raising to date, with a $43.4 million debt financing. This capital gives us a long runway on which to continue our trajectory of growth in wagering, gross margins and improving operating leverage. This was a milestone event for our business," added Mr. Moskowitz.

 

2024 Operating Highlights:

 
  • Completed the inaugural Blackjack Championship tournament, an innovative online competition that helped drive the acquisition of new high-value players and engagement for existing customers while increasing Blackjack wagering activity.
  •  
  • Implemented a series of enhancements to the NorthStar Bets platform, highlighted by streamlined navigation in both the Casino and Sportsbook sections, a doubling of Casino game selection since the start of 2024, personalized prop bets and intelligent parlay suggestions.
  •  
  • Introduced the "NorthStar Elite" program and branded tables to help secure the loyalty and satisfaction of our most active players and reinforcing the Company's positioning as a premium offering.
  •  
  • Launched "Sports Insights 2.0," a robust suite of enhancements to our content vertical that includes a redesigned home page, comprehensive team and player statistics, injury and player news feeds, added coverage of popular sports and strengthened casino content.
  •  
  • Gained significant traction outside the Ontario market with managed services revenue from Northstarbets.com site, owned by the Abenaki Council of Wolinak, increasing from $0.5 million in FY 2023 to $2.3 million in FY 2024.
  •  
  • Outpaced the industry growth rates reported by iGaming Ontario in 2024 in both Total Wagers (51% for NorthStar vs. 33% for the industry) and Gross Gaming Revenue (51% for NorthStar vs. 31.5% for the industry).
  •  

Outlook

 

"We expect our consistent pattern of year-over-year revenue increases to continue throughout 2025, based on our ongoing success in attracting and engaging high-value players," said Mr. Moskowitz. "We will maintain disciplined control over costs so that incremental gross margin falls primarily to the bottom line. As we continue to focus on operational excellence, we remain confident that we have the capital necessary to reach profitability based on our current business platform."

 

FY 2024 Corporate Update Webinar

 

On May 15, 2025, Michael Moskowitz will present an in-depth Corporate Update, including a discussion of the Company's FY 2024 Earnings, current operations and strategic priorities. All investors and other interested parties are invited to register for the webinar at the link below.

 

Date: Thursday, May 15, 2025
Time: 11:00 am EDT
Register: Webinar Registration

 

Management will be available to answer your questions following the presentation on the webinar platform. You may also submit your question(s) beforehand in the registration form linked above.

 

Extension of Strategic Marketing Agreement

 

The Company also announced that its wholly owned subsidiary, NorthStar Gaming (Ontario) Inc. ("NorthStar Ontario"), has extended its strategic partnership with Playtech Software Limited ("Playtech Software") through the renewal of their previously announced strategic marketing agreement. Under the agreement, Playtech Software contributes services designed to accelerate NorthStar Ontario's player acquisition strategy in the province. The agreement was first implemented in June 2023 and has since been renewed several times. Pursuant to the latest renewal, Playtech Software will reimburse marketing expenses valued at a total of up to $1.5 million over a 3-month period through to March 31, 2025. Playtech Software will be compensated through a share of revenue from the income generated in connection with the marketing initiatives to which it contributes. The Transaction between Playtech and NorthStar Ontario is exempted from Multilateral Instrument 61-101 Protection of Minority Securityholders in Special Transactions.

 

"We are very pleased to renew the marketing services agreement with Playtech Software," said Michael Moskowitz, Chair and CEO of NorthStar. "The agreement serves to extend our marketing budget and has contributed to our tremendous growth in Ontario. Playtech plc continues to be a valuable strategic partner and we look forward to further collaboration."

 

Continuous Disclosure

 

Further to a review by the staff of the Ontario Securities Commission (the "OSC") of the Company's continuous disclosure, the FY2024 MD&A includes enhanced disclosures with respect to:

 
  • the Company's regulatory framework, licensing regimes applicable to its business operations and the legal authorizations necessary to conduct its business operations;
  •  
  • specific risk factors relating to the Company's business operations which include risks relating to operating in a heavily regulated industry, cyber security risks and risks relating to conflicts of interest with respect to directors and officers of the Company; and
  •  
  • the relationship between the Abenaki Council of Wolinak and the Company as well as its subsidiary, Slapshot Media Inc.
  •  

Such amended disclosure is being included in the FY2024 MD&A to address comments received from the OSC on its management's discussion & analysis, for the period ended September 30, 2024, and to improve the Company's disclosure.

 

As a result of having to include such enhanced disclosure after the OSC review, the Company will be placed on the public list of Refilings and Errors in accordance with OSC Staff Notice 51-711 (Revised) - Refilings and Corrections of Errors for a period of three (3) years.

 

Additional Information

 

For additional information, please refer to the Company's condensed consolidated financial statements for the year ended December 31, 2024, and the corresponding FY2024 MD&A. These documents are available on SEDAR+ at www.sedarplus.ca, and on the Company's corporate website at www.northstargaming.ca.

 

About NorthStar

 

NorthStar proudly owns and operates NorthStar Bets, a Canadian-born casino and sportsbook platform that delivers a premium, distinctly local gaming experience. Designed with high-stakes players in mind, NorthStar Bets Casino offers a curated selection of the most popular games, ensuring an elevated user experience. Our sportsbook stands out with its exclusive Sports Insights feature, seamlessly integrating betting guidance, stats, and scores, all tailored to meet the expectations of a premium audience.

 

As a Canadian company, NorthStar is uniquely positioned to cater to customers who seek a high-quality product and an exceptional level of personalized service, setting a new standard in the industry. NorthStar is committed to operating at the highest level of responsible gaming standards.

 

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. Neither the TSX Venture Exchange ("TSXV") nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this press release.

 

Non-IFRS Financial Measures [/ Reconciliation of Non-IFRS Measures to IFRS Measures]

 

Throughout this document, management uses certain non-IFRS financial measures and supplementary financial measures to evaluate the performance of the Company. The terms "Gross Gaming Revenue" "Total Wagers" and "Profit/(Loss) before marketing and other expenses" are non-IFRS financial measures. These measures are not recognized measures under International Financial Reporting Standards ("IFRS") and do not have a standardized meaning prescribed by IFRS and are, therefore, not necessarily comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of our results of operations from management's perspective and to discuss NorthStar's financial outlook. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of the Company's financial information reported under IFRS. We believe that securities analysts, investors and other interested parties frequently use non-IFRS measures, including industry metrics, in the evaluation of companies in our industry. Management also uses non-IFRS measures and industry metrics in order to facilitate operating performance comparisons from period to period, the preparation of annual operating budgets and forecasts and to determine components of executive compensation.

 

Total Wagers

 

Total Wagers are calculated as the total amount of money bet by customers in respect of bets that have settled in the applicable period. Total Wagers does not include free bets or other promotional incentives, nor money bet by customers in respect of bets that are open at period end. Total Wagers is used to provide investors with supplemental measures of our operating performance and thus highlight trends in our business that may not otherwise be apparent when relying solely on IFRS measures.

 

Gross Gaming Revenue

 

Gross Gaming Revenue is calculated as dollar amounts bet by customers less the dollar amounts paid out to the customers in respect of such bets which have settled in the applicable period.

 

Reconciliation of Non-IFRS Measures to IFRS Measures

 
                                
 In Q4 2024, the Company reported $10.0 million of Gross Gaming Revenue ($34.0 million in FY 2024) and has provided a reconciliation to the most comparable IFRS financial measure (Revenue) as follows:
$ Millions (unaudited)
Unaudited Three
months ended
Year ended
 Dec 31,
2024 
 Dec 31,
2023 
 Dec 31,
2024 
 Dec 31,
2023 
Gross gaming revenue from wagered games$10.0$ 7.6$ 34.0$22.5
Bonuses, promotional costs and free bets(2.0)(1.5)(6.7)(4.2)
Sub-total Gaming revenue8.06.127.318.3
Other revenue from managed services1.50.22.30.5
Revenue$ 9.5$ 6.3$ 29.6$ 18.8
 

 

 

Operating Results

 

Marketing expenses are a key driver of the business but are completely discretionary. Management considers "Profit/(Loss) before marketing and other expenses" to be a good indication of the extent to which the business' Gross Margin is in excess of its overhead costs, and therefore offsetting some portion of marketing expenses, reflecting improving economies of scale.

 
                                                    
$ Millions (unaudited) Unaudited Three 
months ended 
Year ended
 Dec 31,
2024 
 Dec 31,
2023 
 Dec 31,
2024 
 Dec 31,
2023 
Revenue$ 9,478$ 6,275$ 29,556$ 18,845
Cost of Revenues5,8684,16719,01313,317
Gross Margin3,6102,10810,5435,528
General and administrative expenses3,0334,45210,45312,277
 Profit/(Loss) before marketing and other expenses (1) 577(2,344)90(6,749)
Marketing5,2495,47215,45614,094
Loss before other expenses (1) (4,672)(7,816)(15,366)(20,843)
Other expenses(1,070)1493,6456,547
Net loss$ (3,602)$ (7,965)$ (19,011)$ (27,390)
 

 

 

(1) These measures are not defined by IFRS, do not have standard meanings and may not be comparable with other industries or companies.

 

Cautionary Note Regarding Forward-Looking Information and Statements

 

This communication contains "forward-looking information" within the meaning of applicable securities laws in Canada ("forward-looking statements"), including without limitation, statements with respect to the following: expected performance of the Company's business, the Company's growth plans being fully funded, expansion into new markets and future growth opportunities, and expected benefits of transactions. The foregoing are provided for the purpose of presenting information about management's current expectations and plans relating to the future and allowing investors and others to get a better understanding of the Company's anticipated financial position, results of operations, and operating environment. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "continues", "forecasts", "projects", "predicts", "intends", "anticipates" or "believes", or variations of, or the negatives of, such words and phrases, or state that certain actions, events or results "may", "could", "would", "should", "might" or "will" be taken, occur or be achieved. This information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. This forward-looking information is based on management's opinions, estimates and assumptions that, while considered by NorthStar to be appropriate and reasonable as of the date of this press release, are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, levels of activity, performance, or achievements to be materially different from those expressed or implied by such forward-looking information. Such factors include, among others, the following: risks related to the Company's business and financial position; risks associated with general economic conditions; adverse industry risks; future legislative and regulatory developments; the ability of the Company to implement its business strategies; and those factors discussed in greater detail under the "Risk Factors" section of the Company's most recent annual information form, which is available under NorthStar's profile on SEDAR+ at www.sedarplus.ca. Many of these risks are beyond the Company's control.

 

If any of these risks or uncertainties materialize, or if the opinions, estimates or assumptions underlying the forward-looking information prove incorrect, actual results or future events might vary materially from those anticipated in the forward-looking statements. Although the Company has attempted to identify important risk factors that could cause actual results to differ materially from those contained in the forward-looking statements, there may be other risk factors not presently known to the Company or that the Company presently believes are not material that could also cause actual results or future events to differ materially from those expressed in such forward-looking statements. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. No forward-looking statement is a guarantee of future results. Accordingly, you should not place undue reliance on forward-looking information, which speaks only as of the date made. The forward-looking information contained in this press release represents NorthStar's expectations as of the date specified herein, and are subject to change after such date. However, the Company disclaims any intention or obligation or undertaking to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required under applicable securities laws.

 

All of the forward-looking information contained in this press release is expressly qualified by the foregoing cautionary statements.

 
 

For further information:

 

Company Contact:

 

Corey Goodman
Chief Development Officer 647-530-2387
investorrelations@northstargaming.ca

 

Investor Relations:
RB Milestone Group LLC (RBMG)
Northstar@rbmilestone.com

 
 

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NorthStar Gaming Announces Receipt of Management Cease Trade Order

NorthStar Gaming Announces Receipt of Management Cease Trade Order

NorthStar Gaming Holdings Inc. (TSXV: BET) (OTCQB: NSBBF) ("NorthStar" or the "Company") today announces that its principal regulator, the Ontario Securities Commission, has granted its request for a management cease trade order ("MCTO") effective May 8, 2025.

As previously announced on April 29, 2025, the Company applied for the MCTO due to a delay in filing its annual audited financial statements, management's discussion and analysis and related certifications for the financial year ended December 31, 2024 (the "Annual Filings") which were required to be filed by April 30, 2025.

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NorthStar Gaming Announces Delay of Annual Filings

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