International Game Technology (IGT), manufacturer and distributor of slot machines and other gambling technology, has reported a 12 percent year-on-year revenue decline in Q1 2025, impacted by rebranding expenses, a weak jackpot performance in the US, and currency headwinds.
IGT posted $583 million in revenue for the quarter ending 31 March 2025, down from $661 million in Q1 2024. Operating income also fell 37 percent to $138 million, while income from continuing operations plummeted 93 percent to $8 million, compared to $116 million last year.
The company attributed the weaker financial results to “rebranding costs associated with separating Lottery from Gaming & Digital” and “negative foreign currency translation”.
Regional revenue performance
Revenue in the US and Canada dropped sharply by 20 percent to $259 million. Italy showed more stability with a smaller 3 percent decrease to $246 million. The Rest of World region reported a 7 percent fall to $79 million.
However, within that global picture, the Rest of World segment showed resilience in specific areas. Instant ticket and draw games grew by 5.2 percent year-on-year outside North America and Italy.
Financial indicators and debt position
Adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the quarter was $250 million, a 24 percent decline year-on-year. Diluted earnings per share (EPS) stood at -$0.11, down from a positive figure last year.
Net debt improved slightly, decreasing from $5.22 billion to $5.05 billion. On 14 March 2025, IGT secured a €1 billion ($1.11 billion) loan due in 2030. Half of the funds will be used to repay credit facilities, while the remaining €500 million has been reserved in the event IGT wins the Italian Lottery Licence.
CEO’s Comment
, said, “Global sales of instant ticket and draw games continue to expand, driven by a steady pipeline of game innovation and portfolio optimisation strategies. While the world is currently faced with great uncertainty, we are excited about the initiatives we are working on to drive sustainable, long-term growth and shareholder value.”
“First quarter profit was in line with expectations at constant currency and we delivered strong cash conversion,” said Max Chiara, CFO of IGT. “Given lower US multi-state jackpot activity and the current worsening macroeconomic environment, we believe it is likely we will be at the low end of the full-year revenue and Adjusted EBITDA guidance provided in February. With a solid financial profile and ample liquidity in advance of important contract renewals, we remain well-positioned for the future.”
Product segment insights
Instant ticket and draw-based game revenue declined 3 percent to $500 million globally. US multi-state jackpot games faced a steep drop of 46 percent, generating just $17 million in the quarter.
In the US, instant ticket and draw sales decreased by 1.3 percent, while Italy saw a 0.7 percent decline in the same category. Global same-store sales dropped 3.8 percent, though instant ticket performance was relatively stable with just a 0.1 percent dip.
Despite this, the company noted an increase in instant ticket printing and terminal sales during the quarter.
