IGT Stock: Over 15% Increase Intraday Explanation

By Amit Chowdhry ● May 11, 2021
  • The stock price of International Game Technology PLC (NYSE: IGT) increased by over 15% during intraday trading. This is why it happened.

The stock price of International Game Technology PLC (NYSE: IGT) increased by over 15% during intraday trading. Investors appear to be responding positively to the company’s first quarter results.

— 25% revenue growth to $1,015 million on outstanding Global Lottery performance; continued recovery in Global Gaming including acceleration in Digital & Betting activities

— Income from continuing operations of $138 million; Adjusted EBITDA of $450 million, among the highest levels in Company history, driven by revenue momentum and structural cost savings

— Achieved cash from operations of $251 million; free cash flow of $204 million driven by strong results and invested capital discipline

— Completed sale of Italy B2C gaming businesses; net proceeds to partially fund full redemption, by make-whole call, of 4.75% Senior Secured Euro Notes due February 2023

— Company to host Investor Day on November 9, 2021

KEY QUOTES:

“We delivered some of our strongest profit results ever during the first quarter, fueled by robust player demand and significant, structural cost savings. Our Global Lottery segment achieved record same-store sales levels on impressive increases around the world. The Global Gaming segment is demonstrating swift, progressive recovery, including accelerated momentum for Digital & Betting activities. We expect to return to 2019 levels for key financial metrics this year.”

— Marco Sala, CEO of IGT

“With the recovery in our business in full swing, we are delivering strong operating leverage which, when coupled with invested capital discipline, drove strong cash flows in the quarter. This enabled us to accelerate our debt retirement strategy and gives us confidence in a return to pre-pandemic leverage levels by the end of the current year.”

— Max Chiara, CFO of IGT

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.