Vince Sadusky, the CEO of International Game Technology (IGT) Strategy
Vince Sadusky, the CEO of International Game Technology (IGT), on the company’s strategic review and recent financial performance. Here are the key points:
Strategic Review: Vince Sadusky expressed his belief that the company’s share price does not accurately reflect the full value of IGT’s assets. He discussed potential restructuring options, suggesting that the gaming and PlayDigital businesses, due to their synergies, should remain together, but implied that the lottery segment could potentially be separated from the rest of the business.
Financial Performance: IGT’s Q2 revenues were above consensus expectations, with an increase of 3% YoY to $1bn and adjusted EBITDA rising 8% to $443m. This performance was largely attributed to the faster recovery of the US and Canada markets. IGT’s PlayDigital segment saw a significant revenue increase of 38% to $59m.
Las Vegas Strip GGR: Despite tougher comparative periods, Gross Gaming Revenue (GGR) from the Las Vegas Strip was up 4% in June. Sadusky mentioned that this metric is a good indicator of the health of the industry.
Lottery Revenues: The lottery segment didn’t fare as well, with revenues falling 4% to $624m. A recent legal setback occurred when a suit regarding the awarding of the UK National Lottery to Allwyn was dismissed by the High Court.
New Opportunities: Despite the lottery segment’s underperformance, Sadusky pointed to a new joint venture with Scientific Games to operate the lottery in Minas Gerais, Brazil, as a sign of potential growth in this segment.
Italian Market: Sadusky addressed the decrease in performance in Italy, stating that it was expected due to the extraordinary results during the COVID-19 lockdowns and the subsequent reopening of gaming halls.