International Game Technology's Q4 2024: Contradictions on Italy Lotto Timeline, CapEx, and Mega Millions Pricing

These are the key contradictions discussed in International Game Technology PLC's latest 2024Q4 earnings call, specifically including: Italy Lotto RFP timeline, CapEx guidance, and expectations regarding the Mega Millions price increase:



Lottery Business and Strategic Focus:
- IGT generated over $1 billion in consolidated cash from operations and about $660 million in free cash flow in 2024, with more than 80% of free cash flow coming from lottery operations.
- The strategic focus on the lottery business resulted from the announced sale of the gaming and digital business for more than $4 billion in cash, aiming to provide products and services to more lotteries than any other company.

Revenue and Profitability:
- IGT reported $2.5 billion in revenue for the year, consistent with 2023, with $1.2 billion in EBITDA and a margin of 47%.
- The stability in revenue was due to consistent core instant ticket and draw game sales, offset by lower US multi-state jackpot sales.

International Operations and Growth:
- IGT's operations in Italy saw a 7% same-store sales growth in the fourth quarter, driven by new game launches and special draws.
- The success in Italy is attributed to strategic product innovation and the introduction of new technologies like the Infinity print technology.

iLottery and Digital Platform Expansion:
- IGT's iLottery sales rose 28% in both the fourth quarter and full year 2024, with strong performance in the US, Italy, and Europe.
- Growth was driven by the deployment of the iLottery platform in 11 jurisdictions and successful player acquisition programs.