LONDON - International Game Technology PLC (NYSE:IGT), a global leader in gaming, has entered into a three-year contract to provide instant ticket games and related services to Santa Casa da Misericórdia de Lisboa (SCML), the operator of Portugal's national lottery. The agreement, which follows a competitive procurement process, will leverage IGT's portfolio of instant ticket content and innovations tailored to the local Portuguese market.
IGT's COO of Global Lottery, Jay Gendron, commented on the partnership, emphasizing the company's understanding of the Portuguese market and its commitment to delivering engaging instant ticket games to meet player demands. The collaboration aims to support the continuous growth of SCML, which has been a partner of IGT since 2000.
The contract stipulates that IGT will supply SCML with a range of marketing services, including game development and analytics, to enhance the lottery experience for players in the region. IGT's relationship with SCML extends beyond instant ticket services; the company has also been SCML's primary lottery technology provider for over two decades, offering retail central system hardware, software, terminal maintenance, and field services.
IGT boasts a significant presence in the global lottery market, serving as the primary technology provider for many of the world's largest lotteries, including 26 of the 46 in the U.S., and 16 of the top 25 worldwide. The company's reach spans over 100 jurisdictions, with a commitment to responsible gaming experiences across various channels and regulated segments.
This news is based on a press release statement and does not include any forward-looking statements from IGT. The company's forward-looking statements are subject to risks and uncertainties and are based on current management beliefs and information. These statements are not guarantees of future performance and may be affected by various factors, as detailed in IGT's annual report and SEC filings.
In other recent news, International Game Technology PLC (IGT) has reported robust financial results for the first half of 2024, with revenues exceeding $2 billion and operating margins reaching 23%. The company also announced the appointment of Nick Khin as President of Global Gaming. In addition, IGT has sold its Gaming and Digital business to private equity firm Apollo for $4.05 billion, deviating from a previous plan for a spin and merger with Everi Holdings (NYSE:EVRI).
These developments indicate a strategic shift in the company's focus towards its global lottery business, which saw a 2% revenue increase in the first half of the year. IGT achieved record operating income and adjusted EBITDA before separation and divestiture costs. The company plans to use the proceeds from the sale to Apollo to repay debt and return capital to shareholders.
However, IGT has withdrawn its full-year financial outlook due to the planned sale and expects to report Gaming and Digital results as discontinued operations starting in the third quarter. The company's CEO, Vince Sadusky, expressed satisfaction with IGT's performance and the strategic sale of the gaming and digital businesses. IGT aims to sustain a low to mid-single-digit long-term growth profile for the lottery business, driven by innovation and increased engagement post-pandemic.
InvestingPro Insights
As International Game Technology PLC (NYSE:IGT) secures a new contract to enhance the lottery experience in Portugal, the financial metrics and analyst insights from InvestingPro paint an intriguing picture of the company's performance and prospects. With a market capitalization of $4.4 billion and a solid gross profit margin of 48.7% over the last twelve months as of Q2 2024, IGT demonstrates its capability to generate significant value from its sales. This profitability is further underscored by the company's strong free cash flow yield, a valuation aspect that InvestingPro highlights as a key strength.
IGT's commitment to shareholder returns is evidenced by its history of dividend payments, maintaining them for 10 consecutive years, and offering a dividend yield of 3.64% as of the latest data. This consistent return to shareholders aligns with the company's overall performance, with a robust return over the last five years. However, it's important to note that analysts have revised their earnings downwards for the upcoming period, suggesting that investors should keep an eye on potential shifts in the company's financial outlook.
The company's stock price has experienced volatility, which is reflected in the 10.08% price total return over the last three months, combined with a more challenging year-to-date price total return of -17.5%. Yet, analysts remain optimistic about IGT's profitability for the year, a sentiment that is supported by the company being profitable over the last twelve months.
InvestingPro provides a wealth of additional insights for those looking to delve deeper into IGT's financial health and future prospects. Currently, there are 9 additional InvestingPro Tips available, offering nuanced analysis and data that can guide investors in their decision-making process. For a comprehensive understanding of IGT's investment profile, visit InvestingPro.
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