Brightstar Lottery Plc Trading Under The Legal Name To Begin At The Market Open On July 21, 2025. · NYSE:BRSL
Brightstar Lottery Plc Trading Under The Legal Name To Begin At The Market Open On July 21, 2025 — International Game Technology — Q4 2023 Earnings Presentation
44 slides from Brightstar Lottery Plc Trading Under The Legal Name To Begin At The Market Open On July 21, 2025's earnings presentation, Mar 12, 2024
Slide 1: Rule 425 filing notice
Filed by International Game Technology PLC (SEC File No. 001-36906) pursuant to Rule 425 under the Securities Act of 1933, as amended, and deemed filed pursuant to Rule 14a-12 under the Securities Exchange Act of 1934, as amended Subject Company: International Game Technology PLC (SEC File No. 001-3
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
2 Cautionary Statement Regarding Forward-Looking Statements This presentation may contain forward-looking statements (including within the meaning of the Private Securities Litigation Reform Act of 1995) concerning International Game Technology PLC and its consolidated subsidiaries (the “Company”) a
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Slide 4: Upgraded 2023 Financial Goals achieved
Revenue Operating Income Margin Cash From Operations Capital Expenditures(1) Upgraded 2023 Financial Goals ~$4.3B ~23% $900M - $1,000M $400M - $450M 2023 Actual Results $4.3B 23% $1,040M $421M Achievement *Non-GAAP measure; see disclaimer on page 2 and reconciliations to the most directly comparable
Slide 5: Global Lottery: organic growth and contract extensions
Robust product sales drove Q4’23 revenue up 7%; FY’23 revenue up 6% net of Italy commercial services Global same-store sales up 2.3% in FY’23 with growth across draw, instant, and jackpot games Italy SSS increased 6.6% U.S. & Rest of world SSS up 1.2% iLottery sales up 40+% Secured multi-year contra
Slide 6: Global Lottery recurring revenue business with attractive margins
Operating Income Margin 17 19 21 22 68 79 99 101 2015 2019 2022 2023E Italy U.S. Global Lottery – Recurring Revenue Business with Attractive Margins, Backed by Long-term Contracts 30% 36% 2019 2023 CAGR 3.8% CAGR 6.7% 2019 2021 2023 CAGR 83.9% 15% 22% 93% 7% Service Product Sales (1)Market share is
Slide 7: Global Gaming: focused execution of key strategies
Sustained momentum with Q4’23 operating income up 17% FY’23 revenue up 9% on broad-based KPI strength, fueling ~30% increase in operating income Shipped 35,000+ units in FY’23, up 7%, with record ASPs across geographies Magic Treasures Dragon and Magic Treasures Tiger continue to rank in top ten New
Slide 8: PlayDigital generates record FY'23 revenue and profit
PlayDigital Generates Record FY’23 Revenue and Profit Revenue up 9% in FY’23, driven by iGaming growth across geographies; achieves ~500 bps of OI margin expansion iGaming GGR fueled by ~80 new game launches and game aggregation capabilities Distinctive new products and creative solutions enhance pl
Slide 9: Achieved FY'23 financial goals across segments
Organic growth drives FY’24 outlook Achieved FY’23 Financial Goals Across Segments; Well-positioned for Success in FY’24 9 Broad-based momentum across segments Record-breaking revenue and profit in FY’23; in line with upgraded outlook
Slide 10: Strategic Review to Unlock Shareholder Value by Creating Two Companies
Strategic Review to Unlock Shareholder Value by Creating Two Best-in-Class Global Companies 10 Creates two pure play businesses with best-in-class teams Facilitates more focused operating & capital allocation strategies, optimized capital structures for each business Allows each business to pursue e
Slide 11: Complementary Capabilities Create a Global Gaming & FinTech Enterprise
Complementary Capabilities Create a Comprehensive Global Gaming & FinTech Enterprise 11 Fi na ncia l A ccess Core S pecia lty S ys te m s P rem ium S o ft w a re H a rd w a re Spo rts Bet tin g iGaming Digital F in T e ch Gam ing S ales G a m in g O perations ATM Aggregation Platform Video Poker Cor
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Slide 13: Q4'23 and FY'23 Results Achieve Upgraded Outlook
Q4’23 and FY’23 Results Achieve Upgraded Outlook Provided in Q3’23 Note: EUR/USD FX daily average 1.08 in Q4’23, 1.02 in Q4’22, 1.08 FY’23, 1.05 FY’22 (1)Italy commercial services business was sold in September 2022 (2)Included in operating income and Adjusted EBITDA are $13M in Q4’23 and $24M in FY
Slide 14: Global Lottery Q4'23 results
Robust Q4’23 Product Sales Drive Global Lottery Revenue & Profit Growth Revenue exceeds expectations; up 7% on higher product sales and continued momentum in Italy Global SSS impacted by historic North America jackpot levels in PY Italy SSS up 2.9% North America and Rest of world lower on 25.0% decl
Slide 15: Global Gaming Q4'23 results
Replacement Unit Shipments & Installed Base Expansion Drive Q4’23 Global Gaming Results Revenue up slightly Y/Y despite unusually high jackpot expense New games and cabinets drive higher terminal product sales Shipped ~9,400 units globally on continued replacement unit growth North America ASPs incr
Slide 16: PlayDigital Q4'23 results
PlayDigital Delivers Strong Q4’23 Profit Performance; Operating Income Margin Nears 2025 Target Revenue down 10% Y/Y One-time benefit to jackpot expense in PY Sports betting reflects lower volumes and hold rates in Rhode Island iGaming GGR higher across geographies; double-digit growth in U.S. Sport
Slide 17: Strong Cash Generation and Balanced Capital Allocation
19% 29% 6% 13% 4% 30% Minority payments, net Capital expenditures and license obligations Business acquisitions, net Dividends to shareholders Share repurchases Debt reductions, net Capital returned to shareholders – 17% *Non-GAAP measure; see disclaimer on page 2 and reconciliations to the most dir
Slide 18: Credit Profile Strengthened with Net Debt Reduction
Credit Profile Progressively Strengthened with Significant Reduction in Net Debt* & Net Debt Leverage Net debt leverage improves to 2.9x, lowest level in Company history Credit rating actions reflect improved risk profile Upgraded to Ba1 from Ba2 by Moody’s Investors Service; outlook stable in March
Slide 19: Q1'24 & FY'24 Outlook
Revenue Operating Income Margin(1) Cash from Operations Capital Expenditures (including payments on license obligations) Introducing Q1’24 & FY’24 Outlook; Re-segmentation Combines Global Gaming & PlayDigital FY’24 Outlook $4.3B - $4.4B 20% - 21% ≥$1.0B ~$500M Key Outlook Assumptions Q1’24 Outlook R
Slide 20: Select Transaction Highlights & Path Forward
Select Transaction Highlights & Path Forward 20 New combined gaming business to raise $3.7B of debt: Refinance existing debt and pay $2.6B distribution to IGT PLC 3.2x – 3.4x pro forma net debt / Adjusted EBITDA expected at closing(1) IGT PLC’s $2.6B(2) distribution primarily used to repay debt: ~$2
Slide 21: Strong Q4'23 & FY'23 performance; clear path to closing
Q4’23 and FY’23 Financial Results Achieve Upgraded Outlook Clear Path to Transaction Closing Strong Financial Performance in Q4’23 & FY’23; Heading into 2024 on Firm Foundation 21 Significant Opportunity for Value CreationNet Debt & Leverage Improve to Record Low
Slide 22: Q&A
Slide 23: Appendix
APPENDIX
Slide 24: FY'23 Revenue & Profit Profile
41% Note: $ millions, except noted otherwise (1)Segment-level profit charts exclude Corporate support expense and purchase price amortization 59% 36% 5% Lottery Gaming PlayDigital 78% 22% Service Product Sales 63% 22% 15% U.S. & Canada Italy Rest of world 71% 24% 5% Lottery Gaming PlayDigital 70% 26
Slide 25: Global Gaming: broad-based momentum across revenue streams
Global ASPs North America MLP Trends North America Unit ShipmentsGlobal Installed Base Operating Income Margin Global Gaming – Broad-based Momentum Across Diverse Revenue Streams & Improved Profit Profile 14% 20% 2019 2023 21,019 26,208 2019 2023 $13,400 $15,800 2019 2023 2019 2023 Installed Base Un
Slide 26: PlayDigital: strong B2B presence with scale
Revenue by Product U.S. Sportsbooks PoweredNew iGaming Games Launched Annually Revenue ($M) PlayDigital – Strong B2B Presence with Scale & Profitability in High-growth Emerging Business Key characteristics include speed to market, scalability, differentiated games & services, strong commercial relat
Slide 27: U.S. and Italy lottery markets resilient in recessions
U.S. and Italy Lottery Markets Historically Demonstrate Resilience During Periods of Recession U.S. Lottery Industry Sales ($B) March 2001– Sep 2001 March 2008–June 2009 March 2020– June 2020 0 20 40 60 80 100 Instant Other Draw Keno Multi-state Games Recession IGT Italy Lottery Sales (€B) June 2001
Slide 28: U.S. Gaming GGR resilient in prior recession periods
U.S. Gaming GGR Reasonably Resilient in Prior Recession Periods The U.S. represents ~70% of IGT’s Global Gaming segment revenue ~80% of U.S. revenue generated in regional markets, ~45% from Tribal customers Mar 2001–Sep 2001 March 2008–June 2009 March 2020–June 2020 0 10 20 30 40 50 60 70 U.S. Comme
Slide 29: Global Lottery Q4'23 & FY'23 select data
Amounts in $ millions except otherwise noted Full-year 2022 results include Italy commercial services business that was sold in September 2022 GLOBAL LOTTERY Q4'23 Q4'22 Y/Y Change Constant Currency Change FY'23 FY'22 Y/Y Change Constant Currency Change Revenue Service Operating and facilities manag
Slide 30: Global Gaming Q4'23 & FY'23 select data
Amounts in $ millions except otherwise noted (1) Excluded from yield calculations due to treatment as sales-type leases GLOBAL GAMING Q4'23 Q4'22 Y/Y Change Constant Currency Change FY'23 FY'22 Y/Y Change Constant Currency Change Revenue Service Terminal 127 126 1% 3% 520 483 8% 10% Systems, softwar
Slide 31: Global Gaming yields and machine units sold
Amounts in $ millions except otherwise noted (1) Excludes Casino L/T lease units due to treatment as sales-type leases; comparability on a Y/Y basis hindered due to fewer active units GLOBAL GAMING (Continued) Q4'23 Q4'22 Y/Y Change FY'23 FY'22 Y/Y Change Yields (by geography)(1), in absolute $ US &
Slide 32: Q4'23 & FY'23 select performance & KPI data
Amounts in $ millions except otherwise noted PLAYDIGITAL Q4'23 Q4'22 Y/Y Change Constant Currency Change FY'23 FY'22 Y/Y Change Constant Currency Change Revenue Service 59 65 (9%) (10%) 227 209 9% 10% Product sales — — NM NM 1 1 21% 21% Total revenue 59 65 (10%) (10%) 228 209 9% 10% Operating income
Slide 33: Consolidated income statement
Amounts in $ millions except per share amounts Full-year 2022 results include Italy commercial services business that was sold in September 2022 Q4'23 Q4'22 Y/Y Change (%) FY'23 FY'22 Y/Y Change (%) Service revenue 839 845 (1%) 3,347 3,359 —% Product sales 291 249 17% 963 866 11% Total revenue 1,130
Slide 34: Q4'23 & FY'23 summarized cash flow statements
Q4'23 Q4'22 FY'23 FY'22 Net cash provided by operating activities 400 278 1,040 899 Capital expenditures (98) (91) (399) (317) Payments on license obligations (7) — (22) — Free cash flow 295 187 619 582 Debt proceeds/(repayments), net (251) 30 (179) (576) Repurchases of common stock — (22) — (115) S
Slide 35: Reconciliations of non-GAAP measures Q4'23
Amounts in $ millions (1) Includes amortization of upfront license fees For the three months ended December 31, 2023 Global Lottery Global Gaming PlayDigital Business Segments Total Corporate and Other Total IGT PLC Net income 27 Provision for income taxes 83 Interest expense, net 71 Foreign exchang
Slide 36: Adjusted EPS reconciliation Q4'23
For the three months ended December 31, 2023 Pre-Tax Impact Tax Impact (1)(2) Net Impact Reported EPS attributable to IGT PLC - diluted $(0.04) Adjustments: Foreign exchange loss, net $0.25 $(0.04) $0.29 Currency conversion impacts of hyper-inflationary economies (3) $0.10 $— $0.10 Amortization - pu
Slide 37: Reconciliations of non-GAAP measures Q4'22
Amounts in $ millions (1) Includes amortization of upfront license fees For the three months ended December 31, 2022 Global Lottery Global Gaming PlayDigital Business Segments Total Corporate and Other Total IGT PLC Net loss (31) Provision for income taxes 101 Interest expense, net 66 Foreign exchan
Slide 38: Adjusted EPS reconciliation Q4'22
For the three months ended December 31, 2022 Pre-Tax Impact Tax Impact (1)(2) Net Impact Reported EPS attributable to IGT PLC - diluted $(0.32) Adjustments: Foreign exchange loss, net $0.46 $(0.04) $0.50 Currency conversion impacts of hyper-inflationary economies $0.01 $— $0.01 Amortization - purcha
Slide 39: Reconciliations of non-GAAP measures FY'23
Amounts in $ millions (1) Includes amortization of upfront license fees For the year ended December 31, 2023 Global Lottery Global Gaming PlayDigital Business Segments Total Corporate and Other Total IGT PLC Net income 307 Provision for income taxes 322 Interest expense, net 285 Foreign exchange los
Slide 40: Adjusted EPS reconciliation FY'23
For the year ended December 31, 2023 Pre-Tax Impact Tax Impact (1)(2) Net Impact Reported EPS attributable to IGT PLC - diluted $0.77 Adjustments: Foreign exchange loss, net $0.21 $(0.03) $0.24 Currency conversion impacts of hyper-inflationary economies (3) $0.18 $— $0.18 Amortization - purchase acc
Slide 41: Reconciliations of non-GAAP measures FY'22
Amounts in $ millions (1) Includes amortization of upfront license fees For the year ended December 31, 2022 Global Lottery Global Gaming PlayDigital Business Segments Total Corporate and Other Total IGT PLC Net income 414 Provision for income taxes 175 Interest expense, net 289 Foreign exchange los
Slide 42: Adjusted EPS reconciliation FY'22
For the year ended December 31, 2022 Pre-Tax Impact Tax Impact (1)(2) Net Impact Reported EPS attributable to IGT PLC - diluted $1.35 Adjustments: Foreign exchange loss, net $0.13 $0.08 $0.05 Currency conversion impacts of hyper-inflationary economies $0.05 $— $0.05 Amortization - purchase accountin
Slide 43: Additional Information and Where to Find It
Additional Information and Where to Find It In connection with the proposed transaction (the “Proposed Transaction”) between Everi Holdings Inc. (“Everi”), International Game Technology PLC (“IGT”), Ignite Rotate LLC (“Spinco”) and Ember Sub LLC (”Merger Sub”), Everi, IGT and Spinco will file releva
Slide 44: Forward-looking statements and transaction risks
results, including the actual results of Everi, IGT, the Spinco Business, or the combined company, to differ materially from those expressed or implied by such statements. These risks and uncertainties include, among other things, risks related to the possibility that the conditions to the consummat
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