IGT Everything-up Attractive Rev Synergy Offers Logo
  • IGT Everything-up Attractive Rev Synergy Offers

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  • It was announced that the global gaming and play digital division of International Gaming Technology Plc (IGT) will merge these businesses with another gaming technology provider, Everi Holdings Inc., providing "strong revenue synergies across products and regions."

    Vince Saduski, chief executive of IGT, made the comments during a conference call with investment analysts on Tuesday to discuss the company's fourth-quarter earnings. The company said it had achieved "record" adjusted earnings before interest, taxation, depreciation and amortization in 2023 to nearly $1.78 billion, up 6.9% year over year.

    During the call, Mr Sadusky said: "The decision [to separate the business] was the result of a strategic evaluation aimed at unlocking the value of our portfolio. He will lead a new combined company.

    IGT shareholders "will retain 100% ownership of the predictable growth and resilience of global lottery pure play, while owning 54% of the faster-growing gaming, digital and fintech businesses," the management said.

    "This separation will give us more flexibility to pursue "operational and capital allocation strategies optimized for different business models" and "organic and inorganic growth strategies," Mr Sadusky said on a conference call.

    According to the executive, lottery peers trade "just six times" between 12 and 18 times corporate value (EV) against EBITDA compared to IGT.

    Mr. Sadusky observed that his gaming peers trade between 11 and 13 times EV/EBITDA. "The new gaming business will have a similar scale and growth trajectory to his peers, before the benefits of potential revenue synergies," he added.

    While IGT "provides a wide range of global offerings across Class III, VLT, iGaming and casino management systems, Everi's business is "primarily focused on North America with Class II gaming and extensive fintech capabilities," Mr Sadusky noted.

    "Together, we can generate touch points across our player journey from casino floor to mobile," he added. "The business has an attractive recurring revenue model with recurring revenue streams of gaming operations, iGaming and fintech solutions, which account for more than 60% of our proforma revenue."

    The executive expected the group to "grow at a single-digit median compound annual growth rate by 2026," with adjusted EBITDA "growing at a stronger single-digit rate."

    "We're looking at $2.6 billion in revenue, over $1 billion in EBITDA, approximately 60% of that cycle, and an installation base of approximately 70,000 units," he added

    BY: 슬롯사이트 순위

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