“IGT’s board is considering a wide range of potential alternatives, including, but not limited to, sales, mergers, or spin-offs, as well as maintaining and investing in its global gaming and play digital business,” the company said in a press release on Thursday.
IGT CEO Vince Sadusky said in a prepared statement that he had begun reviewing and evaluating strategic alternatives in the gaming and digital sectors, “focusing on implementation” of the “growth goals and multi-year goals” outlined in November 2021.
In November 2021, the company said it was considering a separate public listing of the group’s digital and betting businesses as part of a strategic review for future growth.
“Regardless of the outcome of this process, IGT is well positioned to meet its long-term growth and profit targets,” Mr Sadusky said in a statement on Thursday.
IGT maintains Deutsche Bank, Macquarie Capital and Mediobanca as financial advisors, while Sidley Austin and White & Case serve as legal advisors to support the company’s search for strategic alternatives. 슬롯머신
IGT reported net income of $23 million in shareholders in May for the three months to March 31, up 0.9% from a year earlier to $1.06 billion in revenue.
The group’s global gaming revenue in the first quarter of this year was $389 million, up 21.2% from a year ago. Revenue from the digital and betting sectors was $55 million, up from $47 million a year ago. The company also operates in the lottery and sports betting sectors.
IGT said in its first-quarter results release that it started the year with “significant cash flow generation and further improvement” in its credit profile. The company reduced its net debt to $5.12 billion as of March 31 from $5.15 billion at the end of December.
“No decision has been made on any alternatives, there is no timeline for review and there is no confidence in what deal the search for strategic alternatives will lead to,” the game provider said on Thursday.
“Over the past three years, IGT has strengthened its strategic focus by reorganizing around its core product vertical line, monetizing non-core assets, reducing structural costs and significantly improving its credit profile,” the latest announcement also quoted Marco Sala, chairman of the board
“We believe that the intrinsic value of IGT’s market-leading business and diversified cash flow profiles is not currently reflected in our stock prices and that it is appropriate to evaluate opportunities to improve the value of IGT’s shareholders,” he added
IGT shares rose 3.9% to $31.50 at the close of trading on Thursday.
By comparison, shares of casino equipment and gaming technology provider Light & Wonder Inc were at $66.97 at the end of Thursday’s session.
Light & Wonder has now reorganized its business, focusing on the ground-based casino sector, the social casino business, and the iGaming sector. The company sold its sports betting business last year, with total revenue of about $800 million. It also sold its lottery business, generating about $5 billion in net after-tax cash revenue.