International Game Technology (IGT) has released its financial results for the first quarter of 2025, showing a sharp decline across several key metrics as the company navigates a complex global gaming landscape, rebranding efforts, and a looming high-stakes lottery license bid in Italy.
Revenue and Profitability Face a Tough Quarter
IGT posted $583 million in revenue, marking a 12% year-on-year decline, while operating income dropped 37% to $138 million. The downturn reflects a challenging start to the year, with macroeconomic uncertainty and reduced US lottery activity cited as major contributors.
Geographically, the company saw:
A 20% decline in revenue from the US and Canada to $259 million
A 3% drop in Italy to $246 million
A 7% decline across the Rest of World segment to $79 million
Notably, income from continuing operations plunged 93%, plummeting from $116 million in Q1 2024 to just $8 million. Despite this, IGT managed to stay profitable, reporting a net income of $60 million, down 53.1% from the prior year.
Jackpot Drought and FX Headwinds Impact Performance
A 46% drop in U.S. multi-state jackpot activity significantly weighed on results. Instant ticket and draw-based games also took a hit, with revenue sliding 3% to $500 million. Adjusted EBITDA declined 24% to $250 million, and diluted EPS turned negative at -$0.11.
According to IGT, the results were impacted by:
Costs tied to separating the Lottery and Gaming & Digital business units
Foreign currency translation losses from global operations
A dip in same-store global growth, down 3.8%
Despite this, global instant ticket sales held relatively steady, with the Rest of World segment even seeing a 5.2% year-on-year increase.
Italian Lottery License: A Strategic Focus
In a clear strategic signal, IGT has set aside significant resources in anticipation of bidding for the Italian Lottery Licence. A €1 billion loan secured in March 2025, split equally between refinancing and future licensing costs, illustrates their financial commitment to maintaining dominance in the Italian market.
Additionally, the company reinforced its regulatory profile by achieving its sixth consecutive responsible gaming certification in Italy—a critical credential for upcoming licensing decisions.
Outlook: Conservative, Yet Optimistic
Looking ahead, IGT expects FY2025 revenue to reach $2.55 billion and adjusted EBITDA to total $1.10 billion—both at the lower end of guidance due to continued jackpot volatility and a weakening macroeconomic environment.
Max Chiara, CFO, acknowledged the tempered forecast, citing pressure from jackpot inactivity and foreign exchange impacts but emphasized “strong cash conversion” and a “solid financial profile.”
Meanwhile, CEO Vince Sadusky remains bullish on long-term strategy, highlighting ongoing innovation in instant ticket and draw game portfolios as growth catalysts.
Award Recognition Adds Positive Momentum
Adding a bright note, IGT became the first company accredited with the iCAP (Internet Compliance Assessment Program) Ready certificate from the U.S. National Council on Problem Gambling, showcasing its commitment to responsible gambling standards and player protection.
Final Take
IGT’s Q1 2025 results reflect a period of realignment and preparation rather than outright growth. With rebranding efforts underway, regulatory bids looming, and market conditions fluctuating, the company is balancing short-term pain for potential long-term gains.
