Fourth Quarter 2022 Monetary Efficiency Exceeded Excessive Finish of Outlook:

• Income of $1.1 billion propelled by 7% same-store gross sales progress in International Lottery, a 21% improve in International Gaming income, and document contribution from PlayDigital
• 24% improve in working earnings to $230 million; working earnings margin of 21%, up 340 foundation factors vs. PY on substantial improve in International Gaming and PlayDigital profitability

Full 12 months 2022 Monetary Efficiency Met Excessive Finish of Outlook:

• Income of $4.2 billion, up 3% as reported and eight% at fixed foreign money, pushed by sturdy International Gaming and PlayDigital progress
• Document working earnings of $922 million; 22% working earnings margin contains vital International Gaming enchancment
• Delivered $899 million in money from operations and $582 million in free money move on sturdy efficiency and disciplined administration of invested capital
• Diminished web debt by $771 million; leverage improves almost a half flip to three.1x
• Returned a document $276 million to shareholders
• Count on full yr 2023 income of $4.1 – $4.3 billion with working margin of 21% – 23%; first quarter 2023 income of roughly $1.0 billion with working margin of twenty-two% – 24%

LONDON, Feb. 28, 2023 /PRNewswire/ — Worldwide Sport Know-how PLC (“IGT”) (NYSE:IGT) as we speak reported monetary outcomes for the fourth quarter and full yr ended December 31, 2022. Right this moment, at 8:00 a.m. EST, administration will host a convention name and webcast to current the outcomes; entry particulars are offered beneath.

“We achieved all our monetary objectives final yr whereas strengthening product management positions throughout our International Lottery, International Gaming, and PlayDigital actions,” stated Vince Sadusky, CEO of IGT. “Vital strategic work executed over the previous few years has reworked IGT into an organization with greater progress prospects, a greater revenue profile, and a stable path to delivering on our long-term objectives. It has additionally enabled document capital returns to shareholders in 2022. We enter 2023 from a place of power with good momentum throughout enterprise segments.”

“2022 was one other yr of great monetary accomplishments,” stated Max Chiara, CFO of IGT. “With lowered curiosity expense and enhancements to the efficient tax fee, 2022 adjusted EPS highlights IGT’s considerably improved earnings energy. We generated sturdy money move whereas funding elevated investments for future progress. This, coupled with proceeds from gross sales of non-core companies, allowed us to meaningfully scale back debt and leverage to the bottom ranges ever. The Firm’s enhanced credit score profile and vital liquidity present stable assist and adaptability as we execute our multi-year plan.”

Overview of Consolidated Fourth Quarter and Full 12 months 2022 Outcomes

Fourth Quarter and Full 12 months 2022 Key Highlights:

• Awarded a number of Lottery services administration contract extensions together with a four-year extension in New York, seven years in Georgia, 20 years in Rhode Island, and three years in Missouri; received a 10-year instantaneous ticket printing and companies contract in Texas
• Named “Lottery Provider of the 12 months” at 2022 SBC Awards North America
• Received a number of Gaming business awards together with “Land-Primarily based Product of the 12 months” at 2022 International Gaming Awards, “Finest Slot Product” at 2022 GGB Gaming & Know-how Awards, and 4 awards together with “Finest Slot Machine” and “Finest New Revolutionary Product” at The On line casino Awards 2022
• Prolonged cashless momentum with a number of deployments together with an enterprise-wide adoption of Resort Pockets and IGTPay at Station Casinos
• Launched high-performing IGT PlayCasino video games in West Virginia, increasing digital footprint to 5 U.S. states, and in Ontario, as market expands to incorporate industrial operators
• Accomplished sale of Italian industrial companies companies; web proceeds used to scale back debt
• Accomplished acquisition of iSoftBet; a number one iGaming content material supplier and third-party aggregator
• Obtained BB+ Lengthy-Time period Issuer score from Fitch with a steady outlook and an funding grade senior secured debt score of BBB- in February 2023
• Achieved sector-leading ESG rating from Moody’s ESG Options; acknowledged because the top-ranking gaming provider by the All-In Variety Undertaking (AIDP)
• Joined the Science Primarily based Targets initiative (SBTi), formally pledging to set targets to scale back greenhouse fuel emissions

Fourth Quarter 2022 Monetary Highlights:
Consolidated income of $1.1 billion elevated 4%, or 8% at fixed foreign money, from $1.0 billion within the prior-year interval

• International Lottery income of $639 million, down 7% as reported and three% at fixed foreign money, as sturdy multi-jurisdiction jackpots and product gross sales have been offset by influence of Italian industrial companies sale
• International Gaming income elevated 21% to $389 million, with sturdy double-digit progress throughout service and product sale income streams
• Document PlayDigital income of $65 million in comparison with $42 million within the prior yr, propelled by iGaming with natural progress, market growth, and contributions from iSoftBet acquisition

Working earnings of $230 million, up 24% as reported and 30% at fixed foreign money, from $186 million within the prior yr

• International Lottery working earnings of $216 million, steady as reported and up 6% at fixed foreign money, on excessive revenue flow-through of same-store gross sales progress
• International Gaming working earnings elevated 89% to $68 million on vital working leverage partially offset by greater provide chain prices; document working earnings margin of 18%
• Document PlayDigital working earnings of $17 million, up 239% on sturdy income progress, decrease jackpot expense, and regardless of elevated investments in expertise, analysis and improvement, and iSoftBet integration prices
• Company assist and different expense of $71 million in comparison with $72 million within the prior yr

Adjusted EBITDA of $419 million, up 8% as reported and 13% at fixed foreign money, from $387 million within the prior yr; displays sturdy revenue progress in International Gaming and PlayDigital and a major contribution from International Lottery

Internet curiosity expense of $66 million, down from $77 million within the prior yr on decrease common debt balances

Overseas change lack of $95 million versus a acquire of $4 million within the prior yr, primarily reflecting the influence of fluctuations within the EUR/USD change fee on debt

Provision for earnings taxes of $101 million, in comparison with $56 million, primarily resulting from greater non-deductible overseas change losses and incremental valuation allowances on deferred tax belongings

Internet lack of $31 million versus web earnings of $55 million as elevated revenue is greater than offset by greater non-cash overseas change losses

Full 12 months 2022 Monetary Highlights:
Consolidated income of $4.2 billion elevated 3%, or 8% at fixed foreign money, from $4.1 billion within the prior-year interval

• International Lottery income of $2.6 billion, down 8% as reported and a couple of% at fixed foreign money, as sturdy product gross sales and multi-jurisdiction jackpots have been offset by decrease Italy same-store gross sales and influence of Italian industrial companies sale
• International Gaming income up 28% to $1.4 billion on broad-based power, together with considerably greater U.S. & Canada substitute machine unit gross sales and elevated put in base yields
• PlayDigital income rose to a document $209 million, up 27% from $165 million, primarily pushed by iGaming natural progress, market growth, and contribution from iSoftBet acquisition

Working earnings of $922 million, up 2%, or 9% at fixed foreign money, from $902 million within the prior-year interval       

• International Lottery working earnings of $909 million, down 16% as reported and 10% at fixed foreign money, with sturdy 35% working earnings margin regardless of decrease income contributions from Italy
• International Gaming working earnings elevated over 5 occasions to $242 million on vital working leverage, partially offset by greater provide chain prices
• PlayDigital working earnings rose to a document $50 million on stable working leverage and regardless of elevated investments in expertise, analysis and improvement, and iSoftBet integration prices
• Company assist and different expense of $279 million, up from $262 million within the prior yr, primarily pushed by greater transaction-related bills and personnel prices

Adjusted EBITDA of $1.7 billion, down 1% as reported and up 4% at fixed foreign money, from $1.7 billion within the prior-year interval, reflecting sturdy International Gaming and PlayDigital revenue progress and decrease contribution from International Lottery

Internet curiosity expense of $289 million, in comparison with $341 million within the prior-year interval, as web proceeds from asset gross sales and free money move technology drove decrease common debt balances

Overseas change lack of $36 million, in comparison with a acquire of $66 million within the prior-year interval, primarily reflecting the influence of fluctuations within the EUR/USD change fee on debt

Different non-operating expense of $7 million versus $98 million within the prior-year interval

• $278 million acquire on sale of Italian industrial companies enterprise offset by $270 million accrual related to the DDI/Benson matter and $13 million loss on extinguishment of debt within the present yr
• $91 million in losses associated to premiums paid in reference to bond redemptions in prior yr

Provision for earnings taxes of $175 million versus $274 million within the prior yr, primarily pushed by decrease incremental valuation allowances on deferred tax belongings and a tax profit arising from the DDI/Benson matter provision

Internet earnings from persevering with operations of $414 million in comparison with $255 million within the prior-year interval

• Achieve on sale of Italian industrial companies enterprise
• Overseas change losses in comparison with overseas change positive aspects within the prior yr
• Decrease earnings tax and curiosity expense
• Diminished losses associated to retirement of debt
• Accrual associated to DDI/Benson matter

Money from operations was $899 million in comparison with $1.0 billion within the prior-year interval

• Decrease curiosity funds associated to decrease debt ranges
• Elevated stock ranges to assist progress
• Increased money taxes resulting from sturdy Italy lottery efficiency in prior yr
• $50 million escrow fee associated to DDI/Benson matter in 2022

Document shareholder returns of $276 million; $161 million deployed in dividends to shareholders and $115 million for share repurchases

Internet debt of $5.2 billion, down $0.8 billion from $5.9 billion at December 31, 2021

• Robust money move technology
• Proceeds from sale of Italian industrial companies and closing installment from sale of Italian gaming machine, sports activities betting, and digital gaming companies
• Internet debt leverage improved to three.1x, down from 3.5x at December 31, 2021

Money and Liquidity Replace
Complete liquidity of $2.4 billion as of December 31, 2022; $590 million in unrestricted money and $1.8 billion in extra borrowing capability

Different Developments
The Firm introduced full redemption of $61 million, 5.35% Notes due 2023, on January 23, 2023

In a separate press launch issued as we speak, the Firm introduced the make-whole redemption of €188 million of three.50% Notes due 2024 and $200 million of 6.50% Notes due 2025  

The Firm’s Board of Administrators declared a quarterly money dividend of $0.20 per frequent share

• Ex-dividend date of March 13, 2023
• Document date of March 14, 2023
• Fee date of March 28, 2023

Introducing 2023 Expectations 
First quarter

• Income of roughly $1.0 billion
• Working earnings margin of twenty-two% – 24%

Full 12 months

• Income of $4.1 billion – $4.3 billion
• Working earnings margin of 21% – 23%
• Money from operations of $900 million – $1.0 billion
• Capital expenditures of $400 million – $450 million

Earnings Convention Name and Webcast:
February 28, 2023, at 8:00 a.m. EST

To register to take part within the convention name, or to take heed to the dwell audio webcast, please go to the “Occasions Calendar” on IGT’s Investor Relations web site at www.IGT.com. A replay can be accessible on the web site following the dwell occasion.

^{Be aware: Sure totals within the tables included on this press launch might not add resulting from rounding}

Comparability of Outcomes

All figures introduced on this information launch are ready below U.S. GAAP, except famous in any other case. Adjusted figures exclude the influence of things comparable to buy accounting, impairment prices, restructuring expense, overseas change, and sure one-time, primarily transaction-related objects. Reconciliations to probably the most immediately comparable U.S. GAAP measures are included within the tables on this information launch. Fixed foreign money adjustments for 2022 are calculated utilizing the identical overseas change charges because the corresponding 2021 interval. Administration makes use of non-GAAP monetary measures to know and evaluate working outcomes throughout accounting intervals, for inner budgeting and forecasting functions, and to judge the Firm’s monetary efficiency. Administration believes these non-GAAP monetary measures replicate the Firm’s ongoing enterprise in a fashion that permits for significant period-to-period comparisons and evaluation of enterprise developments. These fixed foreign money adjustments and non-GAAP monetary measures ought to nevertheless be considered along with, and never in its place for, the Firm’s reported outcomes ready in accordance with U.S. GAAP. Quantities reported in hundreds of thousands are computed primarily based on quantities in hundreds. Consequently, the sum of the elements might not equal the whole quantity reported in hundreds of thousands resulting from rounding. Sure columns and rows inside tables might not add resulting from using rounded numbers. Percentages and earnings per share quantities introduced are calculated from the underlying unrounded quantities.

About IGT
IGT (NYSE:IGT) is a world chief in gaming. We ship entertaining and accountable gaming experiences for gamers throughout all channels and controlled segments, from Lotteries and Gaming Machines to Sports activities Betting and Digital. Leveraging a wealth of compelling content material, substantial funding in innovation, participant insights, operational experience, and modern expertise, our options ship unrivalled gaming experiences that have interaction gamers and drive progress. We now have a well-established native presence and relationships with governments and regulators in additional than 100 jurisdictions all over the world, and create worth by adhering to the very best requirements of service, integrity, and accountability. IGT has roughly 10,500 staff. For extra data, please go to www.IGT.com.

Cautionary Assertion Relating to Ahead-Wanting Statements
This information launch might include forward-looking statements (together with throughout the that means of the Non-public Securities Litigation Reform Act of 1995) regarding Worldwide Sport Know-how PLC and its consolidated subsidiaries (the “Firm”) and different issues. These statements might focus on objectives, intentions, and expectations as to future plans, developments, occasions, dividends, outcomes of operations, or monetary situation, or in any other case, primarily based on present beliefs of the administration of the Firm in addition to assumptions made by, and data at present accessible to, such administration. Ahead-looking statements could also be accompanied by phrases comparable to “goal,” “anticipate,” “consider,” “plan,” “might,” “would,” “ought to,” “shall”, “proceed,” “estimate,” “anticipate,” “forecast,” “future,” “steerage,” “intend,” “might,” “will,” “doable,” “potential,” “predict,” “undertaking” or the unfavorable or different variations of them. These forward-looking statements communicate solely as of the date on which such statements are made and are topic to numerous dangers and uncertainties, lots of that are outdoors the Firm’s management. Ought to a number of of those dangers or uncertainties materialize, or ought to any of the underlying assumptions show incorrect, precise outcomes might differ materially from these predicted within the forward-looking statements and from previous outcomes, efficiency, or achievements. Due to this fact, you shouldn’t place undue reliance on such statements. Elements that might trigger precise outcomes to vary materially from these within the forward-looking statements embrace (however aren’t restricted to) the components and dangers described within the Firm’s annual report on Kind 20-F for the monetary yr ended December 31, 2021 and different paperwork filed sometimes with the SEC, which can be found on the SEC’s web site at www.sec.gov and on the investor relations part of the Firm’s web site at www.IGT.com. Besides as required below relevant regulation, the Firm doesn’t assume any obligation to replace these forward-looking statements. It’s best to rigorously think about these components and different dangers and uncertainties that have an effect on the Firm’s enterprise. Nothing on this information launch is meant, or is to be construed, as a revenue forecast or to be interpreted to imply that the monetary efficiency of Worldwide Sport Know-how PLC for the present or any future monetary years will essentially match or exceed the historic revealed monetary efficiency of Worldwide Sport Know-how PLC, as relevant. All forward-looking statements contained on this information launch are certified of their entirety by this cautionary assertion. All subsequent written or oral forward-looking statements attributable to Worldwide Sport Know-how PLC, or individuals appearing on its behalf, are expressly certified of their entirety by this cautionary assertion.

Non-GAAP Monetary Measures
Administration dietary supplements the reporting of monetary data, decided below GAAP, with sure non-GAAP monetary data. Administration believes the non-GAAP data introduced gives buyers with extra helpful data, however it isn’t meant to nor ought to or not it’s thought-about in isolation or as an alternative to the associated GAAP measures. Furthermore, different firms might outline non-GAAP measures in another way, which limits the usefulness of those measures for comparisons with such different firms. The Firm encourages buyers to overview its monetary statements and publicly-filed stories of their entirety and to not depend on any single monetary measure.

Adjusted EBITDA represents web earnings (loss) from persevering with operations (a GAAP measure) earlier than earnings taxes, curiosity expense, overseas change acquire (loss), different non-operating bills, depreciation, impairment losses, amortization (service income, buy accounting and non-purchase accounting), restructuring bills, stock-based compensation, litigation expense (earnings), and sure different non-recurring objects. Different non-recurring objects are rare in nature and aren’t reflective of ongoing operational actions. For the enterprise segments, Adjusted EBITDA represents phase working earnings (loss) earlier than depreciation, amortization (service income, buy accounting and non-purchase accounting), restructuring bills, stock-based compensation, litigation expense (earnings) and sure different non-recurring objects.

Internet debt is a non-GAAP monetary measure that represents debt (a GAAP measure, calculated as long-term obligations plus short-term borrowings) minus capitalized debt issuance prices and money and money equivalents. Money and money equivalents are subtracted from the GAAP measure as a result of they might be used to scale back the Firm’s debt obligations. Administration believes that web debt is a helpful measure to watch leverage and consider the steadiness sheet.

Internet debt leverage and Leverage are non-GAAP monetary measures that represents the ratio of Internet debt as of a specific steadiness sheet date to Adjusted EBITDA for the final twelve months (“LTM”) previous to such date. Previous to the disposal of the Italian B2C gaming companies within the second quarter of 2021, administration calculated the Internet debt leverage ratio because the ratio of Internet debt as of a specific steadiness sheet date to the LTM of Adjusted EBITDA – mixed previous to such date. Administration believes that Internet debt leverage is a helpful measure to evaluate our monetary power and talent to incur incremental indebtedness when making key funding choices.

Free money move is a non-GAAP monetary measure that represents money move from operations (a GAAP measure) much less capital expenditures. Administration believes free money move is a helpful measure of liquidity and an extra foundation for assessing IGT’s skill to fund its actions, together with debt service and distribution of earnings to shareholders.

Fixed foreign money is a non-GAAP monetary measure that expresses the present monetary information utilizing the prior-year/interval change fee (i.e., the change charges utilized in getting ready the monetary statements for the prior yr). Administration believes that fixed foreign money is a helpful measure to check period-to-period outcomes with out regard to the influence of fluctuating overseas foreign money change charges.

A reconciliation of the non-GAAP measures to the corresponding quantities ready in accordance with GAAP seems within the tables on this launch. The tables present extra data as to the objects and quantities which were excluded from the adjusted measures.

Contact:
Phil O’Shaughnessy, International Communications, toll free in U.S./Canada +1 (844) IGT-7452; outdoors U.S./Canada +1 (401) 392-7452
Francesco Luti, +39 06 5189 9184; for Italian media inquiries
James Hurley, Investor Relations, +1 (401) 392-7190