IGT - Earnings call transcript Q1 2021 | International Game Technology PLC

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Operator

Ladies and gentlemen, thank you for standing by and welcome to the IGT 2021 First Quarter Results Conference Call. [Operator Instructions] Thank you. It is now my pleasure to turn the call over to Mr. Jim Hurley, Senior Vice President of Investor Relations. Sir, the floor is yours.

Jim Hurley

and you conference joining by call, our Executive thank first on Marco and Chief Chief XXXX our quarter which Officer you all us for IGT’s Sala, Financial Thank Officer. Chiara, Max is hosted the remarks, your open up for After their will call prepared we questions.

again presenting multiple locations. from are We results

if with So, any difficulties. please us bear technical encounter we

During meaning of the today’s statements forward-looking within call, we some will securities be laws. making federal

in effects those in to risks the our and differ our and statements SEC actual may the latest are uncertainties expressed results guarantees our or pandemic. number from our not from implied our to the a expectations filings. current uncertainties, are cause statements of on Forward-looking The and including materially forward-looking detailed COVID-XX related differ based and that release principal results in could earnings factors materially of those

may During is call these website, press this find regarding slides non-GAAP accompanying our I this with non-GAAP SEC, additional these comparable reconciliations that, you call, measures, to the of measures Sala. In Marco our will the we measures. financial over Investor GAAP of measures. disclosures Relations release, on with our With each and turn discuss webcast will certain including filings posted which

Marco Sala

and Jim to you, hello Thank everyone.

yields QX. nearly a thanks recovered our in Digital regions. installed and from games reached announcement, levels, activities land-based QX. year for up record activities in revenues on and in Betting accelerated prior to As QX Strong you XX% today’s This momentum Lottery from strong units X% XX%, main the our Growth XX% machine have a in same-store increase translated seen outstanding we growth levels the where quarter. an sales revenue year improved prior had and ‘XX. sold all from the period active over player demand Canada. increase across into across business & slot doubled base with to and drove nearly gains double-digit U.S. including The

We on and top as monitor will OPtiMa line excellent making progress cost continue structural with Max costs the recovers, to later. which the reductions discuss we are program,

growth of Global that up must the XXXX. due sales world. multi-jurisdiction second of for the the same-store to are of the rest from on the quarter the to expectation compared see an the highest You we I the highest Lottery but in business. last margin Lottery, of segment Italy was appeal. strong and This strong progressive activity opportunities is profile. and In increase were can levels acknowledge of some Throughout was ever in in EBITDA same-store unique new activity, benefit land-based over This among and and pandemic. fueled we we the by of the QX fresh player relative A player is Even like North games revenue, sustained achieved time across and year, sales complete benefit a lack world America return outstanding steady same-store of It with profit rest revenue XX%. regions. Lottery normal. QX’s new sales products over XX% recovery resilient believe government for the impact the nature momentum confirms the an model and stream growth engagement. up and stimulus, as ever is XX% EBITDA recent jackpot recovery XX% of North period have and have income, Compared in and content-driven it another The profit always, We with of to the alternatives. U.S., same-store same-store to spend includes and which sales pre-pandemic the performance for up broad of XX%. sales offers of The a valued because increase the value were the first this global XXXX, from The strength levels QX for the through is XX% other move achieved. With the become gaming leverage for is quarters routine factor, quarter. to-date the the This can pandemic XX% and levels results a continues. entertainment some maintained our strength we to as disposable from higher a recovery the by consistent for games supported pandemic, X in trending year. the entertainment without high such XX% this over as performance. Lottery would the in business comes and America has

that jackpot thanks is Powerball widely cycle become steady billion Europe. XXX our XXeLotto EuroMillions double-digit jackpot see while to higher We as strong believe as to According and will as This levels normal jackpot intend is an and to quarters. another driver new fueling the valley Multi-jurisdiction return more over other sign. ticket chance Lottery more interest sales games progressive We almost from million from the It prices to pandemic-related higher and we next the are contributor. Instant games. benefiting we add-on player play in second before available, after levels expect Extra to a entertainment Innovation in at in peaks they Mega expected research, the continue. were than free is increases Italy. encouraging are arena, and X through especially the is to Italy. options In the several double U.S., to many in U.S. ticket moderate sales growth draw-based and in COVID. the games an did current in year, well reasonable average important sales prior ticket important Millions

market stable growth in individual America. the casinos Our U.S., resume pace when the and has Las over our stickiness and U.S. segment in led a players since mid-single-digit U.S. in younger, operators. options recovery Global which be Gaming in will among are The of the about and a markets, units increased expectation are of U.S., is open players thanks more more base particularly our month-over-month, vaccination limited. of for see for also restriction And but only some starting normal mostly progressing in other Recurring recent is Vegas. that revenues those as confidence improvement activated. to have entering regional substantial This will into in business. revenue. installed being a levels, is the our the higher improving of consumption. largely conducted, but to translating not market pandemic driving are players, as to is the slot a recovery in This where GGR the a are segment the swift business play well the most Core North is XX% the accounts for from rate, returned entertainment new of January, business to

units more single as are high yields digits were Even on up, powered active sequentially. units U.S. up

multi-level New Xi strong Fa franchise along of Dragon such results. Gong Fortune Wheel Cai, with are as Lights, progressive, driving these

also double-digit levels. in Life the Canada were diversity and were across while QX the increase X’s Extreme in far We which top-selling the in titles. our in casinos The the core regional, fueled including ‘XX growth and XX% among by Wild the as tribal a quarter, from not unit replacement, well units, customer U.S. speaks were and Riches sales resilience had VLT Regal to video VLTs. Big the as and titles, Dance City commercial mix best good Lion

Betting is betting iGaming, aspects It our from clear ecosystems. is us expect iLottery continued over the and across Global of is sports meetings to Gaming year for segment. few Digital role all IGT interest We plays important & progressive you. of too, the the as great last improvement an that throughout our in It months

During existing doubled year. in Xx to levels. QX, the was the Most came the player of There digital markets. in last the cannibalization signs base no of GGR increase an & across QX, growth nearly posting revenue prior strongest are the Xx channel in land-based business. the quarterly year in from expanding Digital Betting that portfolio

growth the expect several for profile strong maintain organic years next business jurisdictions. through We growth, the to combination a new the double-digit of from including contribution a

have we first, America, role this opportunity are the developed In and third, IGT and for distributor by through customers. to content, in to of support long-standing to games; and Greece third-party to verticals. such IGT expand and iLottery maintain for objectives: North and this internally to games there studios. industry, the growth maintain relationship emerging and portfolio three positions leveraging we to through markets, of also iGaming of an Outside all investing area for penetrate the XX%, There Germany, our American combination increasing today with North emerging and the having leading retention a us. third-party other developed in and portfolio intend world’s We enhancing investing to Netherlands. of activities player commitment leading in focus is share international acquisition result are as the as those marketing our our three the of act content capabilities; iGaming, expanding in We a is our support this leadership market. opportunity additional a main platform is lottery should XX% with All second,

the betting in our to market we we Since levels. X and trading number X customers, double sports good in the presence Queen, operators. the As land-based to summer, country. we XX for the made signing is iLottery of widely look most have last sports used years, U.S. authorizing the progress We spans solution others. XX Maverick the potential launch current us states, of Snoqualmie next U.S. among over books. platform betting the for in offering betting see Gaming, sports over including tribal opportunity Today, our turnkey commercial in-house sports IGT’s out casino Emerald to jurisdictions and representing team the greatest see from

been in There this and where have deals where more passed, legislation is not yet states the more We is year has are sports pending many operational. X legislation betting, XX but pipeline.

jurisdictions markets securing the ensuring customer proactively is We our with go live. as are in approval where is regulatory pending, partnership a launch

a foundation The trends in first activities confirm gaming value significant fast appeal growth by Lottery our the reductions can profits IGT the are the and This where favorable accentuated high-growth high for margins build next recovery record years. the segment, that and broad Our businesses. outlook. for entertainment true Stronger our quarter our Global further bolstering for compelling flows. outlook momentum & is start several Betting of to player U.S. land-based by structural Digital strong cash our cost and year long-term accelerating illustrate is on and sales the enhanced marked over results profit improve games, revenue especially

by year-end. will certain the of BXC reduction, be businesses of gaming debt sale should Italy improved recent our for proceeds the profile With used that significantly leverage be

turn Now, call will to Max. I the over

Max Chiara

you, exhibited Thank gaming to pace, sale both the Marco prepared of primarily speaking hello operations with our Italy fast in business of recent strength quarter activity last the period. of first BXC to and jackpot on will be business. by to a today. the and of in XXXX call our the Similar I on displays call, due our supported my everyone performance running early remarks, exceptional financial the The continuing Lottery IGT basis in a part portfolio at the core the

EBITDA. our a $X Our million of verticals. our unit growth brought revenue path accelerated trends performance These over an adjusted as in robust on $XXX platform OPtiMa a billion to and well program sustained in in strong gaming as contribution with recovery a from is digital

Our margin profitability million achieved as during the roughly through showcases QX improvement Lottery company. dynamic year’s of one-third disciplined of We savings this well and business margin actions mainly $XXX the cost-saving OPtiMa target efforts. throughout product simplification leverage our over as

certain expenses improved gradually saw initiatives. throughout primarily our benefit reoccurrence volume to in first of an excellence expected Compared the to prior running we see the year, quarter, the Gaming As operational employee-related increasing costs. the year, expect from we normal

share. cash to to healthy at in this returned over profitability per quarter, conversion cash flow, a Interesting note, drove $X.XX level first is million performance. Continued income generating net CapEx which for $XXX and discipline we quarter free high

Turning revenue year grew player tickets, highlighting demand. over on rose increased from January Same-store same-store sales to Global Lottery February, prior draw-based on Slide XX, sales pandemic, $XXX the million. where segment over to were our growth underlying and across no games, XX% broad-based and impacts in the strong double-digit jackpots multistage there XX% instant iLottery.

million XX%. The margin growth sales as prior is the license into $XX fixed software lumpy growth. offset fact, revenue. this This revenue Part XXXX in leverage ticket agreement. Lottery line Lottery’s revenue X% structure large showing translated year by from performance-driven through particularly same-store naturally down largely which evident Product In sales $XX million of revenue margins And million jackpot XX%-plus printing period sales, with increase an our QX same-store cost QX top annual in an in $XX accruals represent Lottery terms benefit incremental QX in higher lottery benefits in comparison about U.S. the on the almost also partly million quarter instant from prior of to of before. revenue adjusted XX% million. multistage more includes to service in revenue roughly million of outside astounding our doubled to $XXX $XX approximately are to includes we from the is of of incentive activities. $XX growing And were sales, items EBITDA in the than management had income over $XXX indicated entirely and total from the Operating year million flow profit. in growth

excellent business. resilient by So, all-in-all, and vibrant an Lottery our performance pandemic

Gaming, of million XX% Turning the $XXX was year. down prior revenue Global to over

expenses in improvement replacement period. Indiana. sales quarter, the this and leverage, active cash the to despite Cash on and to from up benefit Over driving operating units down impact strong are direct sold levels XX% Free X,XXX the prior the operations strategic down Unit as year increased growing due compared We over debt the due as continue adjusted savings initiatives you that was have year installed Margin Rock actions. see of a yields offset AWP quarter. was over EBITDA improved a prior the year In booked the leverage to well. year, the Canada levels the you business VLT million previous leverage XX, down. of up from in and of loss concentration on our the And lower contribution unique upgrades units and Operating can of IGT loss in Betting flow was pre-COVID from can expect U.S. to shipments the sales higher million. revenue, of to to are with full Sequentially, cost turn just lower Resorts & in the interest $XXX agreement the payments year to cash and close to by base U.S. revenue quarter prior revenue line come trends XX% versus and KPIs to of Digital globally over partially the installed the now multiyear business. see QX Overall, the at the machines. in year in fourth and X% was are diligent sequentially. driven highlighting quarter. sequential first productivity by in XX% return double-digit the flow this of active with top quarter. America, Slide improving, year. adjusted World recovery Las were North openings in active end and to higher global savings We accelerate, casino revenues and was which and net continues and a and stable. year-end On casino product by Hard see service XXXX. the resilience Vegas EBITDA reflect We prior last $XXX base base compared cost

year, our last rate been history. have lowest transactions euros dollars two call, last significant paid we reduced to we and coupon earnings additional can debt improvements. In at extended On in capital debt, see company improvements structure and costs. as most Since our Each interest have maturities. the of in debt the our were we slide, recent maturities our next made down the there

we debt date XXXX a approximately March, First, due refinanced XXXX. with and notes in of $X of extended maturity late notes billion combination in new to successfully bank and the

redemption to the Second, plus the proceeds XXXX the contribute €XXX the net $XXX of the will euro-denominated the from through our full of million exercise – from of make-whole. the sale proceeds in in Italy business plus net million gaming notes the sale of

forward in starting a As million In allow progressive $XX by changes U.S. our gaming was with annual strong to materialize two save this performance will run meaningfully rate debt of combination about going interest us cost our in you recovery near-term OPtiMa QX and to can these the reduce see, maturities in full year. driven summary, growth, of global savings quarter savings lottery first and initiatives. cost

We are according contributing structurally reduce plan. $XXX by track with each year, million to our structure this segment on cost more than to

flow primarily cash EBITDA debt, a of the allowing to the by levels pre-pandemic convert adjusted free used us flow healthy is We rate. continue reduce leverage generate end cash to And we of to to at reach year. the

Now, like Slide to share growth Quarter-to-date, sales global second perspectives XX%. on is over the quarter our I XX. same-store would of lottery

So on second not activity basis, benefits to QX though contract our a expect the recur. do and LMA we year-over-year $XX jackpot revenue in higher be revenue quarter million should incentive to Lottery related

We sequential what in expect in seen with quarters. last we few in improvement Gaming line have business, the the continued

in trends. second profitability second than for we in quarter will relevant cost should even of expect our temporary and later the financial I an strategic second in to targets savings long-term we allocation metrics and While be higher can reductions key let will the and on to stable. plans. is financial operating year, be you line during be be and where markets time prior reiterate that year, will on convinced all excited market quarter it several targets, elaborate by without and Depreciation with EBITDA interacted am relatively of benefit quarter year echoed the The the on lower overall expect update sequentially, priorities, us capital in with And the Day market amortization sentiments participants to me recently. vaccination meaningful line announce have the adjusted we hosting full with our core we XXXX. income update campaigns has progress XXXX drastic that Investor we return long-term in our

connect We Then our October our Investor will as York be will opportunities early that, and many and X, before New well in conference roadshow will our Hopefully, City. including participation. quarter early host in-person as to second Day. in on GXE earnings have we third earnings August, report in quarter normal November it

So please can remarks. Operator, for mark questions? please calendars. our concludes open the prepared your call That you

Operator

line of comes Bank. [Operator the Instructions] Your Deutsche from first question Carlo Santarelli from

Carlo Santarelli

Hey, obviously guys. it those acknowledging to to kind this put in and for need the ambiguity the a prepared about as probably started you when revenue you started best is of talked guys Good revenue million But to morning. have lot Max, Clearly, your that back maybe for return of $XXX targets you you was as one remarks. see ramp. expenses. as tick what run-rate forth out, costs there as guys you would set some to kind

like perhaps look previously that were result have estimate lot the and flow-through spoke be noticed it lot as articulating returning drivers. what doesn’t that to across side Given a you maybe lower than of the it’s the on seen costs you them some business? perhaps incremental of were But the of returned to revenues start could of here, you obviously, Lottery have you a have ramp and

Max Chiara

of the at year. Look, part of the that bank Carlo. able have to been end have we executed day, the throughout actions early in the XXXX on we Hi,

kind cost. discretionary enjoy the terms than same year nature last So continuing on in of of reduction to are benefit we in

discretionary been cost-saving fruition. these permanent will as excellence and initiatives from shift eventually, the and particularly year into have since Gaming side, to year, the those a operational with the product pick we As of start more to the up, unfold, announcing experience structural, on cost simplification will long-term into probably away savings coming we revenue, programs savings will beginning the

expect year, full our So to time. still mix the target but we able over beat the $XXX of will to million change be for the savings

Carlo Santarelli

bit right given Great. the that. just the of the to guys at acknowledging iLottery, obviously, contemplate of business profitable million, is How breaking $XXX investors with is to those the obviously, the revenue providing run for attention a business. little in from how iCasino about to profit when great. thought But million you platform you’re perhaps OSD have business well. that on look guys But disclosure the then And annualize and kind maybe is perspective that’s mean, bit business down now, the you business. even color as That’s some kind streams, further we disclosure, were in appreciate super $XX Betting that kind that little exactly helpful. paid a well? a out you there rating if and secondly, to you the granular of business $XXX as much I Digital first revenue I of more more how doing road featuring million much kind your quarter that give do on & maybe seasonality – obviously, But

Max Chiara

the The which $XXX is pace, is we if at betting digital growth. very business front continues – make further revenue mentioned, million certain the it us we dedicated more activities everyone. by a Carlo. back the consider this time Obviously, based betting, a Gaming So at you point, out rapid phenomenal and earnings our as we standalone last is speaks in organization over for few experienced launched the breaking that a track of able year. also QX driving, Betting on enhanced sports the visibility last to the Obviously, success & sense we we in number we in talk segment. to very in Lottery may across growth & expand revenue to And as Betting been the have the about have Digital question, in and verticals, calls, business last new good Digital fast-growing since in activities QX year of to expect of our generated And is itself. of

Carlo Santarelli

much. you Thank very Max. Take guys. care, Great,

Operator

from Beynon Macquarie. comes of Chad the line question next Your from

Chad Beynon

question. morning. I good my gaming to taking improvement, Thanks start for Hi, wanted Max. on the

across base. wanted on your currently to then said turned of units installed XX% start costs business XXX%? to believe back on can I’m active. we the be But this of end you’ll to come focus how And see are do sure this should think that as when quarter, you second are closer think And I the by on? comes in. Should where the we in differs through I said this Thanks. think the many more how and you second You have jurisdictions you units. on starts get bottom incremental should this will units the about then needed of quarter, finally line? these we the flow to mostly to that, about

Marco Sala

Good installed installed morning, the Chad, I progressively think of while to our in when already done. get will we we the much we costs base till our end not order it reach we speaking, we in XX% active, April, think grow anticipate and additional we almost of the and totality year active, had base of do will believe

Chad Beynon

you. opportunities? side Thank Thank any Lottery levels eye about that tuck-in opportunities help flow picture Perfect. sight, your growth and inorganic how on you your you cash thinking free that just for you position other free now to or then acquisitions, have are Are future? previous could digital And your the is on the recovery or that cash you. other of flow there either the guys in segments

Marco Sala

working time the we are acquisition. on for any being, not No,

not I general, be – to acquired Lottery, on have regarding all grow anything short-term. digital do think we all we verticals. to need in And we expect the

Chad Beynon

on of Best the quarter. Congrats luck. Marco. Thanks,

Marco Sala

Thank you.

Max Chiara

Thank you, Chad.

Operator

Your from from Truist question next comes Jonas Securities. Barry

Barry Jonas

guys. Hey,

levels, gaming historical by a of the EBITDA have that’s year-end. target leverage Italy netting XXXX with to cost I net Xx back I BXC, guess lower the get sale you’ll bit think than and you cuts your if with So

you I So is, here? the dividends like guess how capital thinking about share are question repurchases returns, and

Max Chiara

priorities capital us leverage this is maintenance year. the pre-pandemic Having of to returning is take for materialize there since expect to objective the return capital now, an the our debt we for and to end Board are still allocation until the to for as achieve that, end although of the CapEx paying the levels towards important Obviously, target. will year, by down those shareholders Marco. dividend I for we this reconsider restarting leverage potential payments results said Xx

Barry Jonas

it. Got it, got

curious about New from quick one York platform thinking there potentially just market, bidding provider? couple Okay. clients, a And are then inbounds of just the a betting got a on you we’ve sports how as

Marco Sala

For New York, said? you

Barry Jonas

Yes.

the betting sports For betting mobile York – market. New sports

Marco Sala

No.

the as visibility preparing on not any big, are opportunity might you but advantage is have I as to ourselves York we we think New take of know, there.

details the that on for potential us. still learn will we we opportunity, are will but there compelling thinking be more So opportunities

Barry Jonas

Thanks Got guys on it. Alright. and so much, quarter. congrats a great

Marco Sala

you. Thank

Max Chiara

you. Thank

Operator

Your line comes Domenico next from question Equita. of Ghilotti the from

Domenico Ghilotti

morning. questions. good Hi, of And a couple

the The Italian first is on lotteries.

you give because been has strong. If us it not & I’m of wrong, contribution if Scratch extremely Win can the extremely,

to savings. flowing the P&L, the the you And you sell-out performance can the so of say, to question the if been Gaming the And any, one-off to and to elaborate understand mismatch in Lottery is particular, between compared or on on sell-in have and business? if see I’d second like any contribution? much how savings the

Marco Sala

first take will second I Max and the elaborate the Domenico, Hi, on will question, one.

a is we great, gaming first in of high mismatch Italy. great great sports see sell-out. not have and of and we But do The on a any doing Win Scratch It players with And question, accordingly are our & and shops. sell-in course, houses business closure is doing the of taking the well to very from satisfaction research. by betting advantage level we

Domenico Ghilotti

of basically, take sustainable say, can this level year? part at the least it So continues, it for as, we

Marco Sala

Yes.

sales I continuing. trend the of point of mentioned. solid, just we until It can think reopening solid quite think is I the the performance expect very a I’ve and is

Domenico Ghilotti

Okay.

Max Chiara

this Domenico, second question, Max. the On is

the will our we bit – and now, contribution of a should Gaming part so what in was a of we as year forward. Gaming The the these will – our so as before line soon program, more little we from more ramp coming our as are I total, ahead percentage little fruition, OPtiMa up the run of terms of elaborating ahead I of from be starting excellence operational but see combination less second was target with and initiatives time. the Right going So Carlo, slightly rate with of to in are initiatives Lottery and far. then will come bit over shift

Domenico Ghilotti

the follow-up, not a being on of reported on just number, And a the XXXX for should level, adjusted guide, on a indication disposal? take so it I to on clarification back pro forma the for

Max Chiara

all We continuing financials. ops run of to historicals have recast our through the the

So we apple. doing. should That’s we with comparing apple what are be

Domenico Ghilotti

Okay, Thanks. yes.

Marco Sala

Okay. Thank you.

Operator

next from Instructions] line comes Katz the Jefferies. [Operator of David question from Your

David Katz

and everyone. And maturity the I which all could opportunities did at the well morning there. Clearly, the has is sort wanted Have to bonds I some guess or gone save and in bank thoughts interest there be raise. might how drive debt schedule in trying recent given flow? about to through appreciate degree – you those everyone looking XX, years. you the there, cash Good like to Hi. out any few some opportunities some the next Max, what some as math most commentary. Slide to there look on to and which more of think

Max Chiara

Yes.

situation, is the you So with for with the fact significant second the euro looking question, the now actions chapter would we basically market more good. today for we public the taken and taking bank had into next The bank we’re the is debt, debt fundamentally first have and XXXX thank make-whole of away David. two towers that the on situation. in that ‘XX probably I acknowledge towers – the ‘XX

revolver loan XXXX. have term a ‘XX. in then the And come due ‘XX and obviously, in have we We expiring that will

years. the create some tendering of years always We our obviously, as structure the look are bonds, we at recalls program into couple of the of terms now issuance in out those can to last started that bonds. we actually few a mature On in opportunistically we

But lowering we’re debt pretty of amount that significant by on. So I think with the achieved I debt long now turn bonds bank full short, reducing and the then leverage say later by would total amount and situation we one year-end. story by versus have also happy first a the

David Katz

Yes.

going I it those but were, maybe lower that mean, fair of mean, – not they wind is being the up directionally, sort a is than And least is there I are debt? where Okay. interest the on forum, right bank thought at to fair this costs

Max Chiara

us. – the is of Definitely, financial low-cost for liability the bank liability debt

$XX improves last that amount through actions. to definitely we of have on starting market X.XX with is fruition generated come there last the to in will come if really Obviously, to chance cost or year. effective. the year continue opportunistically that obviously, that I to a mix start million quarterly look the is has see of which this But we average in two transaction capital our to now debt, down bank changing That the again, construct quarter the would probably at on of so. the any point So QX one basis,

David Katz

Perfect.

you very thank much. Okay,

Operator

last DeCree Union John our take from And we from will Gaming. question

John DeCree

for Hi, questions. everyone. Thanks my taking

Marco Sala

Hi, John.

John DeCree

provide. question or a Max, on I to wanted seeing to revenue you’re a Marco iGaming content Obviously, of lot lift. the you have ask where business and your

So us guess, slot mostly the available in – on Or market BXB grows, you’re I’m market? your are revenue terms could the how is U.S. in market iGaming follow-up maybe bit. you the that cost general, business, services? about in the services IGT How we it fixed And to revenue think that content little customers, to help if of iGaming with I technology? iGaming Is grow tied or should question share? curious that a specifically unpack providing that revenue of do a is other related as iGaming getting fee there is,

Marco Sala

on think I I John, question. can elaborate this

is start is in a so – enjoy we that first very iGaming revenues in where share U.S. the and quarter and XX% performance our me in North the over saying of XX% on America, Let based Canada, good. by our share XX%

year the offering is game expect by And market our driven of our as we stays success expect will because our on base grows, expect be our as the maintained double will of the GGR that success the games. market We full double. to strength, for we our

share the games. For is by being, driven our time our proprietary

We to we mechanics. is to in working attune devoted digital truly are and across franchises, and games. the solid you to build some from rework In order good the to you of And digital a them energy Cleopatra, brand the up have franchises cannot on space, from channels. all better well point cases, strong land have that change are lot Yes, this the Fortune, to Vinci effort significantly is, our we of where very to them space. adjust Da the games. Diamonds porting base digital the But working Wheel

cases, contents. need some we because we change So them in stronger the payout to digital make

specific in We we and A the in the with the third-party a the collaboration Fortune too. Megaways be product and means feature, we studios develop been Wheel our ask order in It third in in take to contribution from has to quality work of would that studios. it Italy, enhance now is Jersey some in that recent of Canada, Michigan, offering. Sometimes order New features. parties example for launched we have launched QX,

are we is content. about us that of distributing also bolster to of distributor – market for also can a focus an become thinking Third, our emerging share. third-party area This

content. about all the solid we this very it’s profile the is this with business, revenue that number well to United to might business wave States And especially of prepared regulate jurisdictions of that model in said, are decide, the considering segment. So And growth sharing.

at terms accordingly So in of this sharings of to about you think revenue have to content. the to look that our business performance

John DeCree

Marco. Thanks, Excellent.

I a my number in you questions think there. of answered

So, Congratulations help. on all to quarter. I the appreciate

Marco Sala

much. Thank you very

Operator

And I turn show any the I no back remarks. closing questions at now to for time. this management call will further

Marco Sala

QX on and outstanding delivered for today. products joining recovery business regions measures us our of key us and the return you team the results Thank the and IGT world. we of financial that across The we give around efforts nature resilient model year. to confidence unique the The pre-pandemic swift tremendous this reflects can

a of to about Have speaking foundation next future a look activities. the this the over We of for weeks. you building stronger with each forward core great are of We our day. business

Operator

participation. conference. and your conclude for you Ladies this does gentlemen, today’s Thank again

now may disconnect. all You

International Game Technology (IGT) 11 May 212021 Q1 Earnings call transcript