International Game Technology:  Initiation of Coverage – Is The Immense Growth In Gaming & Digital Segments A Valid Reason For A Bullish Rating?

This is our first report on gaming technology player, International Game Technology PLC (IGT). The company ended fiscal year 2023 with an impressive set of accomplishments, with their Q4 operating income growing 11% and significant free cash flow generation. This enabled them to meet their fiscal year 2023 financial goals which were raised twice during the year. Their Global Lottery, Global Gaming, and PlayDigital segments all contributed to record-breaking achievements of $1 billion in operating income, $1.8 billion of EBITDA, and a 41.3% EBITDA margin. This translates into major cash generation in the period, including record cash from operations of over $1 billion which reduced the company’s net debt leverage to its lowest ever level.