The following is a summary of the International Game Technology PLC (IGT) Q3 2024 Earnings Call Transcript:

Financial Performance:

• IGT reported a revenue of $1.9 billion for the first nine months of 2024, highlighted by a sustained growth in Italy and improving trends in US instant and draw games.

• Adjusted EBITDA stood at $880 million for the same period, with a substantial EBITDA margin of 47.3%.

• Operating income reached $507 million year-to-date, despite a $38 million charge related to restructuring under the OPtiMa 3.0 program.

• Year-to-date revenue increased slightly from $1.849 billion to $1.861 billion, with a notable performance in the instant ticket and draw game sectors which saw revenue growth driven by strong performance in Italy.

Business Progress:

• IGT secured a 10-year facilities management contract extension in North Carolina, incorporating advanced lottery systems and new retailer terminals.

• The company is in the process of selling its gaming and digital business to Apollo, expected to close by Q3 2025, affirming its focus on its robust lottery operations.

• IGT's iLottery segment saw a remarkable 26% growth due to expanding game portfolio and adoption in new jurisdictions including Georgia.

Opportunities:

• The solid financial foundation and high profit margins provide IGT the capacity to capitalize on the dynamic global lottery market, continuing to innovate and develop strategic product initiatives.

• The upcoming increase in Mega Millions ticket prices from $2 to $5 in 2025 marks a strategic shift expected to generate larger, more frequent jackpots, potentially increasing revenue significantly.

Risks:

• The variability associated with US multi-state jackpots, due to their unpredictability, may impact financial stability; however, multi-state jackpot sales represent a smaller percentage of total sales, mitigating overall risk.

• The need to navigate the significant regulatory and operational changes and potential initial decline in lottery ticket volumes due to increased Mega Millions prices.

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