The global leader in gaming, International Game Technology (IGT), saw its revenue go up by 73.5% to $1.04 billion in the second quarter of this year.
The sale of Lottomatica had a significant impact on these numbers, helping the company return to profitability.
Numbers Going Up
When it comes to IGT’s business segments, its global lottery led the way, accounting for 58.1% of the total revenue. That’s $725 million when translated into hard currency.
Of that number, $702 million was generated from services, including operating and management contracts. That’s a rise of 60.4%. The remaining $23 million in revenue was generated through a 6% increase in product sales.
The company’s global gaming vertical recorded a staggering growth of 125.9%, ending the period with $316 in revenue. A total of $108 million came from terminal services, $91 million from software and system service, while gaming services generated revenue of $199 million. Sales in this segment improved by 108.9% to $117 million, with terminal sales going up by 102.2%.
The total services revenue and product sales went up by 72.6% and 79.5% to $901 million and $140 million, respectively.
The US continues to generate the most significant portion of revenue, which increased by 52.1% to $561 million.
Betting and digital gaming brought $61 million in revenue.
The company’s expenses for the period increased by 18.4% to $796 million. Costs of services and product sales went up by 21.3% and 31.3% to $438 million and $88 million, respectively.
Other costs, including administrative ones, jumped by 23.2% to $207 million, while IGT doubled its development costs to $61 million.
IGT ended the second quarter of 2021 with an operating profit of $244 million. During the same period of last year, the gaming giant recorded an operating loss of $72 million.
After interest expenses, foreign exchange costs, other non-operating costs, and a net tax benefit, IGT was left with a $39 million loss from its continuing operations. However, the company’s discontinued operations earned an additional $13 million, while the sale of Lottomatica brought $391 million. In total, IGT recorded a net profit of $365 million.
Half-Year Performance Also Improved
IGT’s revenue went up by 45.3% in the first half of 2021, amounting to $2.06 billion. Of that number, $1.80 billion came from services.
Operating expenses were down from 2020, helping the company make an operating profit of $504 million in the first six months of this year. That’s quite an improvement from the corresponding period of 2020, when IGT recorded a loss of $290 million.
IGT made a profit of $100 million from its continuing operations in H1. Last year, it lost $515 million during the same period. After including the revenue made by Lottomatica and its subsequent sale, IGT recorded a net income of $514 million.
Marco Sala, Chief Executive Officer at IGT, said the strong Q2 and H1 numbers had upped the company’s expectations for the rest of the year. He added they were even hoping to exceed the 2019 performance.
It’s estimated IGT could generate revenue of $2 billion in the second half of this year, with $300 million in operating income.