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1. Company Snapshot

1.a. Company Description

International Game Technology PLC operates and provides gaming technology products and services in North America, Europe, the Middle East, Africa, Asia-Pacific, Latin America, and the Caribbean.It operates in three segments: Global Lottery, Global Gaming, and Digital & Betting.The company designs, sells, operates, and leases a suite of point-of-sale machines that reconciles lottery funds between the retailer and lottery authority; provides online lottery transaction processing systems; produces instant ticket games; and offers printing services, such as instant ticket marketing plans and graphic design, programming, packaging, shipping, and delivery services.


It also designs, develops, assembles, and provides cabinets, games, systems, and software for the gaming market, as well as offers gaming management systems for casino management, customer relationship management, patron management, and server-based gaming.In addition, the company provides video lottery terminals (VLT), VLT central systems, and VLT games.Further, it offers digital gaming and betting; sports betting; and technology and management services.


Additionally, the company provides digital gaming products and services, including blackjack, roulette, slot games, poker, bingo, and other casino card games; social casino content; and remote game server, as well as iGaming systems and digital platforms that offer player account management, advanced marketing and analytical, and payment system services.It processes commercial transactions, such as prepaid cellular telephone recharges, bill payments, e-vouchers and retail-based programs, electronic tax payments, prepaid card recharges, and stamp duty and money transfer services.The company was formerly known as GTECH S.p.A. and changed its name to International Game Technology PLC in April 2015.


The company was founded in 2014 and is headquartered in London, the United Kingdom.International Game Technology PLC is a subsidiary of De Agostini S.p.A.

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1.b. Last Insights on IGT

The recent 3-month performance of International Game Technology PLC was negatively impacted by a double-miss in Q1 FY 2025 earnings and lowered guidance, narrowing upside potential. Lower U.S. multi-state jackpot activity and associated LMA impacts, as well as product sales timing, contributed to prior year comparisons. The company's income from continuing operations of $8 million included a $33 million non-cash impact of foreign exchange translation, resulting in a margin of 1.4%. Adjusted EBITDA of $250 million and Adjusted EBITDA margin of 42.8% highlighted the attractive profit structure of the pure play lottery business.

1.c. Company Highlights

2. Brightstar Lottery's Q3 Earnings Shine with Strong Revenue and Profit Growth

Brightstar Lottery reported a robust Q3 with revenue of $629 million, up 7% from the prior year, and adjusted EBITDA of $294 million, rising 11%. The company's earnings per share (EPS) came in at $0.36, significantly beating estimates of $0.13. The strong financial performance was driven by an 8% increase in same-store sales across all geographies, with the U.S. and Italy recording 8% and mid-single-digit growth, respectively. Global iLottery sales surged over 30% during the period, contributing to the company's overall growth.

Publication Date: Nov -10

📋 Highlights
  • Q3 Revenue & Profit Growth:: Revenue reached $629M (+7YoY), adjusted EBITDA $294M (+11YoY), driven by 8% same-store sales growth globally.
  • Strategic Milestones:: Closed IGT Gaming sale for $4B in cash, refocused as a lottery pure-play business, returning $1B to shareholders via dividends/share buybacks.
  • iLottery Expansion:: iLottery sales surged >30% Q3; aims to bring Italy’s iLottery penetration to European benchmarks by 2030, targeting 20%+ annual growth in iLottery.
  • Cash Flow & Dividends:: Projects $7.1B cash generation 2025–2028, with $1.7B allocated for shareholder returns, including $160M annual dividends and $500M buyback authorization.

Business Highlights and Strategic Milestones

The company achieved several strategic milestones during the quarter, including the closure of the IGT Gaming sale for $4 billion in cash, marking a significant step in its transformation into a pure-play lottery business. Brightstar is now focused on driving growth through its core land-based business, iLottery expansion, and Italy B2C initiatives, with expectations of mid-single-digit growth over the next several years.

Growth Outlook and Key Drivers

Brightstar expects its organic growth rate to accelerate to more than 5% CAGR over the next three years, driven by broader iLottery adoption, share expansion, product innovation, and channel expansion. The company is also investing in digital initiatives, including the My Lotteries Play platform, which has gained 3 incremental points of market share with minimal marketing effort. With a strong growth outlook, the company is well-positioned to create significant shareholder value.

Valuation and Return of Capital

With a P/E Ratio of 17.32 and an EV/EBITDA of 9.82, the company's valuation appears reasonable given its growth prospects. Brightstar has returned nearly $1 billion to shareholders through dividends and share repurchases this year and has announced a $500 million share repurchase authorization, with the first $250 million tranche expected to be completed by the end of the year. The company's Dividend Yield stands at 22.96%, making it an attractive income-generating investment.

Medium-Term Outlook and Opportunities

Brightstar is focused on driving growth through its core business, iLottery expansion, and new opportunities in markets such as São Paulo, Brazil. While these opportunities will take time to materialize, the company is confident in its ability to create significant shareholder value over the next three years. Analysts estimate revenue growth of 1.0% for next year, but the company's strong track record and growth initiatives suggest that it is well-positioned for long-term success.

3. NewsRoom

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Market Today: Travel snags, Skims funding, Toyota batteries, AMD outlook

Nov -12

Source: gurufocus.com

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Brightstar Lottery Group and IGT Group Data Breach Exposes Personal Information: Murphy Law Firm Investigates Legal Claims

Oct -06

Source: globenewswire.com

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Caesars Entertainment Debuts IGT's Kitty Glitter Grand™ Slot Across its Online Casino Platforms and Inside its Atlantic City Resorts

Aug -04

Source: businesswire.com

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Brightstar Lottery Completes Sale of Gaming & Digital Business and Announces $1.1 billion Capital Return to Shareholders

Jul -01

Source: prnewswire.com

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IGT and Atlantic Lottery Sign Eight-Year Video Lottery Central System Technology Agreement

Jun -25

Source: prnewswire.com

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Brightstar Lottery's VP of Global Lottery Marketing, Michelle Carney to be Inducted into Lottery Industry Hall of Fame

Jun -24

Source: prnewswire.com

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IGT PlaySports Continues Partnership with Boyd Gaming in Nevada via New Three-Year Technology Agreement

Jun -16

Source: prnewswire.com

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IGT Levels Up Player Experience at US Casinos with Launch of RISE55 Cabinet

Jun -10

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.23%)

6. Segments

Global Lottery

Expected Growth: 3.5%

The 3.5% growth of Global Lottery from International Game Technology PLC is driven by increasing demand for online lottery games, expansion into new markets, and strategic partnerships. Additionally, the rise of mobile gaming, improved digital infrastructure, and growing disposable income in emerging markets contribute to the segment's growth.

Global Gaming

Expected Growth: 2.8%

Global Gaming growth driven by increasing demand for online gaming, expansion into new markets, and strategic partnerships. IGT's diversified product portfolio, including slots, lotteries, and digital gaming, positions the company for continued growth. Additionally, the rising popularity of sports betting and the growing trend of gamification in various industries contribute to the 2.8% growth rate.

Play Digital

Expected Growth: 3.2%

Play Digital's 3.2% growth is driven by increasing online gaming adoption, expansion into new jurisdictions, and strategic partnerships. Additionally, IGT's content portfolio and platform enhancements are attracting new players, while existing customers are increasing their online gaming spend. Further, the segment is benefiting from the growing popularity of online sports betting and iLottery.

7. Detailed Products

Lottery

International Game Technology PLC provides lottery solutions, including instant tickets, draw-based games, and interactive games, to government-sponsored lotteries and charitable organizations.

Gaming Machines

IGT designs, manufactures, and distributes a wide range of gaming machines, including slot machines, video lottery terminals, and electronic table games, for casinos and gaming venues.

Casino Management Systems

IGT's casino management systems provide a comprehensive suite of tools for casinos to manage their operations, including player tracking, accounting, and security.

Interactive Gaming

IGT provides interactive gaming solutions, including online and mobile gaming, to casinos, lotteries, and other gaming operators.

Sports Betting

IGT provides sports betting solutions, including platform, content, and services, to casinos, lotteries, and other gaming operators.

8. International Game Technology PLC's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for International Game Technology PLC is moderate due to the presence of alternative gaming platforms and products.

Bargaining Power Of Customers

The bargaining power of customers is low due to the company's strong brand reputation and limited switching options for customers.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate due to the presence of multiple suppliers and the company's dependence on a few key suppliers.

Threat Of New Entrants

The threat of new entrants is high due to the growing demand for gaming products and the relatively low barriers to entry in the industry.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of several established competitors and the ongoing competition for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 80.41%
Debt Cost 10.76%
Equity Weight 19.59%
Equity Cost 13.76%
WACC 11.34%
Leverage 410.53%

11. Quality Control: International Game Technology PLC passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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SBM

A-Score: 5.7/10

Value: 4.7

Growth: 6.7

Quality: 6.2

Yield: 1.2

Momentum: 7.0

Volatility: 8.3

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La Française des Jeux

A-Score: 5.6/10

Value: 4.4

Growth: 7.1

Quality: 6.2

Yield: 7.5

Momentum: 2.0

Volatility: 6.7

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Vail Resorts

A-Score: 5.5/10

Value: 3.7

Growth: 5.9

Quality: 5.5

Yield: 8.0

Momentum: 3.0

Volatility: 7.0

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SkiStar

A-Score: 5.2/10

Value: 3.6

Growth: 7.1

Quality: 5.7

Yield: 2.5

Momentum: 4.0

Volatility: 8.3

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IGT

A-Score: 5.0/10

Value: 5.7

Growth: 2.2

Quality: 4.6

Yield: 8.1

Momentum: 2.5

Volatility: 6.7

1-Year Total Return ->

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Entain

A-Score: 4.2/10

Value: 5.5

Growth: 4.1

Quality: 2.2

Yield: 3.1

Momentum: 7.5

Volatility: 3.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

16.29$

Current Price

16.29$

Potential

-0.00%

Expected Cash-Flows