LONDON, Nov. 16, 2021 /PRNewswire/ -- International
Game Technology PLC ("IGT") (NYSE:IGT) will host a virtual Investor
Day today at 8:30 am EST, detailing
the progress the Company has made over the past two years to build
a solid foundation for profitable growth across all business
segments, generate robust cash flows, and pursue a disciplined
capital allocation strategy.
"IGT's industry leadership is built on a legacy of innovation
and trust. Through greater player engagement, responsible
management, and best-in-class content, services, and solutions, we
are well-positioned for profitable growth," said Marco Sala, CEO of IGT. "Our diverse
portfolio aligns with attractive end-markets and our strategy is to
grow, innovate, and optimize. Over the next four years, we are
confident we can deliver accelerating organic growth, significant
margin expansion, and robust free cash flow to drive stakeholder
value and increased shareholder returns."
Strategic Initiatives to Grow, Innovate, and Optimize Provide
Foundation for Compelling Long-term Outlook
- Grow: leverage innovation in content and solutions as
well as leading market positions to expand market share, support
customer sales growth, and capture new market opportunities
- Innovate: utilize large and highly differentiated
intellectual property portfolio and leading investment in research
and development to create best-in-class games, systems, and
solutions to further enhance player experiences and support
customer growth
- Optimize: operational excellence and structural
cost reductions enable continued margin improvement; new OPtiMa 2.0
cost-reduction program expected to deliver more than $150 million in incremental savings, compared to
pre-pandemic levels, by the end of 2023
Introducing 2022 Outlook
- Revenue of $4.1 - $4.3 billion
- Operating margin of 20% - 22%
- Cash from operations ranging from $850
million - $1.0 billion
- Capital expenditures totalling $400
million - $450 million
- Net debt leverage of 3.5x - 4.0x
Setting Compelling and Achievable Financial Goals for 2022 –
2025, Including Robust Growth in Revenue and Margins and
Significant Cash Flow Generation
- Revenue of $4.6 - $5.0 billion in 2025, reflecting a
mid-single-digit compound annual growth rate ("CAGR")
- Mid-teens operating income CAGR; operating margin expansion of
over 500 basis points to 26% - 29% (at the mid-point) in 2025
- Cumulative cash from operations of approximately $4.0 billion; free cash flow of approximately
$2.4 billion
Disciplined Capital Allocation Plans Balance Reinvestment in
the Business with Increased Shareholder Returns
- A comprehensive capital investment plan of approximately
$2.8 billion in aggregate capital
expenditures and research and development from 2022 – 2025,
supporting the existing portfolio with a focus on fast-growing
iLottery and Digital & Betting activities
- Continue to reduce leverage to a range of 2.5x - 3.5x across
the investment cycle, targeting the lower part of the guidance
range by 2025
- Reinstated quarterly cash dividend of $0.20 per common share (previously announced with
earnings on November 9, 2021)
- Implementing $300 million
multi-year share repurchase program, the first in IGT PLC's
history
Strategic Positioning to Increase Optionality for Digital
& Betting Segment
- Realigning Digital & Betting into a new legal entity;
expected to be completed within 12 months, supporting evaluation of
a potential separate public listing of the business
Event Details
Tuesday,
November 16, 2021
8:30 a.m. - 11:30 a.m. EST
Webcast Registration: A live webcast is
available under "Events Calendar" on IGT's Investor Relations
website at www.IGT.com. Registration for the event is
required and can be completed in advance. A replay will
also be available on the website following the call.
Presentation Materials: Materials presented at the event
will be posted on IGT's Investor Relations website at
www.IGT.com during the event.
Share Repurchase Program
IGT's Board of
Directors authorized a program for the repurchase of up to
$300 million of the Company's
outstanding ordinary shares during a period of four years
commencing on November 18, 2021.
Repurchases will be made pursuant to repurchase contracts
entered into with counterparties approved by IGT's shareholders,
pursuant to which such counterparties will purchase ordinary shares
for delivery to the Company. The timing and amount of any
repurchases will be determined by IGT's management based on an
evaluation of market conditions, applicable securities laws and
other factors. These repurchases may be made pursuant to repurchase
plans that meet the requirements of Rule 10b5-1 of the Securities
Exchange Act of 1934, as amended. Rule 10b5-1 allows the Company to
repurchase its ordinary shares at times it might otherwise be
prevented from doing so under insider trading laws or because of
self-imposed blackout periods.
The share repurchase program is expected to be funded through
cash generated from operations. Any shares acquired pursuant to the
repurchase program will be cancelled or held in treasury. The
repurchase program does not obligate the Company to acquire any
particular amount of its ordinary shares, and it may be suspended
or terminated at any time.
Any repurchases of the Company's ordinary shares will be made in
accordance with the authority granted by IGT shareholders at its
annual general meeting ("AGM") to repurchase ordinary shares that
is in effect from time to time. At its 2021 AGM, IGT shareholders
voted to authorize the repurchase of up to 20,485,646 ordinary
shares of the Company. Repurchases will be discontinued in the
event the Company lacks the general authority to repurchase
ordinary shares.
Evaluation of Potential Separate Public Listing of Digital
& Betting Business
IGT recently established a
dedicated Digital & Betting business segment, enhancing
visibility to this high-growth part of IGT's portfolio of
businesses. As a part of its ongoing commitment to ensuring
appropriate strategic flexibility for its Digital & Betting
business, the Company is also undertaking a legal entity and
organizational realignment over the next 12 months designed to
provide the Digital & Betting business with dedicated
management, a more nimble organization and governance structure and
the ability to pursue organic and inorganic growth
opportunities. As part of this process, the Company may
evaluate a potential separate public listing of its Digital &
Betting business to further enhance its strategic flexibility while
maintaining a controlling interest following the consummation of
any such potential separate public listing. There can be no
assurances as to the form and timing of any separate public listing
or other strategic activity that may result from this evaluation or
if any such listing or activity will be consummated at all. IGT
does not currently intend to disclose further developments
regarding its evaluation of a potential separate public listing for
its Digital & Betting business until such time as a final
determination has been made or IGT otherwise determines that
further disclosure is appropriate.
About IGT
IGT (NYSE: IGT) is a global leader in
gaming. We deliver entertaining and responsible gaming experiences
for players across all channels and regulated segments, from Gaming
Machines and Lotteries to Sports Betting and Digital. Leveraging a
wealth of compelling content, substantial investment in innovation,
player insights, operational expertise, and leading-edge
technology, our solutions deliver unrivalled gaming experiences
that engage players and drive growth. We have a well-established
local presence and relationships with governments and regulators in
more than 100 countries around the world and create value by
adhering to the highest standards of service, integrity, and
responsibility. IGT has approximately 11,000 employees. For more
information, please visit www.IGT.com.
Cautionary Statement Regarding Forward-Looking
Statements
This news release 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")
and other matters. These statements may discuss goals, intentions,
and expectations as to future plans, trends, events, dividends,
results of operations, or financial condition, or otherwise, based
on current beliefs of the management of the Company as well as
assumptions made by, and information currently available to, such
management. Forward-looking statements may be accompanied by words
such as "aim," "anticipate," "believe," "plan," "could," "would,"
"should," "shall", "continue," "estimate," "expect," "forecast,"
"future," "guidance," "intend," "may," "will," "possible,"
"potential," "predict," "project" or the negative or other
variations of them. These forward-looking statements do not
guarantee future performance and speak only as of the date on which
such statements are made. These forward-looking statements are
subject to various risks and uncertainties, many of which are
outside the Company's control. Should one or more of these risks or
uncertainties materialize, or should any of the underlying
assumptions prove incorrect, actual results may differ materially
from those predicted in the forward-looking statements and from
past results, performance, or achievements. Therefore, you should
not place undue reliance on such statements. Factors that could
cause actual results to differ materially from those in the
forward-looking statements include (but are not limited to) the
factors and risks described in the Company's annual report on Form
20-F for the financial year ended December
31, 2020 and other documents filed from time to time with
the SEC, which are available on the SEC's website at www.sec.gov
and on the investor relations section of the Company's website at
www.IGT.com. Except as required under applicable law, the Company
does not assume any obligation to update these forward-looking
statements. You should carefully consider these factors and other
risks and uncertainties that affect the Company's business. All
forward-looking statements contained in this news release are
qualified in their entirety by this cautionary statement. All
subsequent written or oral forward-looking statements attributable
to International Game Technology PLC, or persons acting on its
behalf, are expressly qualified in their entirety by this
cautionary statement.
Contact
Phil
O'Shaughnessy, Global Communications, toll free in
U.S./Canada +1 (844) IGT-7452;
outside 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
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SOURCE International Game Technology PLC