International Game Technology (IGT) 2 Aug 222022 Q2 Earnings call transcript

Good day and thank you for standing by. Welcome to the International Game Technology Q2 2022 Earnings Conference Call. [Operator Instructions] I will now turn the conference over to James Hurley, Senior Vice President of Investor Relations. Please go ahead.

Thank you and thank you all for joining us on IGT's second quarter 2022 conference call which is hosted by Vince Sadusky our Chief Executive Officer; and Max Chiara our Chief Financial Officer. Vince will remarks, your available prepared questions. some and be Max for After are locations, from with again, presenting Once we multiple we any us encounter so technical difficulties. if bear please

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

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

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

Jim everyone and hello today. us you, joining Thank to

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to I'll Now, Max. the over call turn

all of today. Thank you to us you, Vince joining and hello

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our you achieved For returns. financial expect points That project-related summary, margin quarter, currency $X concludes compelling the we business segments a remarks. capital of strong significant operating and for operating open our results, reflecting of are $X.X will higher third revenue despite billion headwinds. to fundamentals to XX%, driving We XX% In income questions. billion basis XXX line prepared to in solid outlook and the across margin XXX please movement expenses. Operator, negative

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

the X, things guidance net you the relative at acquisition, of you provided of commercial just when Max, in end maybe willing at or are effect your you of perhaps kind to pertains the point the buckets. kind XQ. extracting kind look factoring in I break or iSoftBet now as of the if to Obviously, to services of some of whatever was to moving at parts out the just and those guidance, it could the business best guys ability hoping, do last July

some like we to have at some half in versus half. will cost the have business with the closed transaction as are when integration to early lower acquisition so some of overachieving get estimate second second a you changed some to take perform effect seen way kind OI step-up some time. the to associated a innings XX% that impact, underlying for guidance related difference we of in Yes, on margins. with The have obviously X the that the to QX is our purchase And XX% project we and said impact last for we small or also lot have and first We're sure, first the to that and the at has been those cost year. with continued the highlight the also in Carlo. will in cost accounting clarifying to that half, an that, more would the have in that particularly phase in have the to less just July amortization terms mathematically of provided of trend part you in Effectively, iSoftBet effect, is mention a potential not margins

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from out does. that is the maybe revenue you that as Yes, more it a And September? coming take an what out have just of Italy the of in pertains then perspective as kind to estimate sale. you simplistically Do revenue

Yes, absolutely.

out million may You assume coming all about revenue the of in quarter. fourth $XXX

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You're welcome.

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

differing Italian [indiscernible] wanted ask ticket the about lottery business. the I the the and specifically, maybe instant to offerings,

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experienced say removal on your mentioned in And gaming half again, some offset units you’re unsupported Could quarter I believe back just some older for the you the that was of of MLP. business, by growth you said looking Great. then kind continued growth. you

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Your next Truth the Jonas question comes of with Barry Securities. from line

more Can chain but And in supply issues to heard you on how give end ship? validator the there to I color ability is a else that’s certainly in anything little We’ve and the about sight? call market importantly, your guess maybe out? specific impacting issues an more bill

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so offering. also anticipate to be points, from all, that And mix, offset a portion global we a our impact higher of hence, is in all that by better price inflationary going

would conclude that my incremental comments. So

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Yes.

Ben, is one. So I'll Max take this speaking. this

we that has say, between now, cost sales of profit. and would I So benefit this above quarters few have Obviously, at we high discrete some the significant higher have a historically this performance once, -- fixed last of flow-through seen for lottery I year. into a XX% more the translated come degree But level mean, in of elevated players' business, at performing or XXs. are from of been Since high

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As know, with we want in we said you to Day to X.X. our came when the at Investor range X.X targets, out we be a of

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Your Instructions] with [Operator Stantial question line the next of Stifel. from comes Jeffrey

you of color more revenue the start to is trends, can wanted I trends. rate focusing a on any Vince, July on things. the bit Max. drill recurring and It’s around more side business recent maybe into exit there provide

specifically in the gating game really ops. So lottery

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us. get So easier the for comps

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of and utilize. awareness to So many of really thing the and kind tagline that's so and that invaluable that there raises dream really, really and lottery of just kind exciting promotion the oftentimes that's marketing lottery

good So start. to a I think we're off

for our is goes, quarters terms As of our strong. quarter sales funnel as the machines. gaming it And third the it's up very a the simply several challenge is far similar in just making story last again, for business

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that strong. think in script, I incredibly the things So particular, are in

moment the industry for So very at gaming be continue very, are the all to good signs as well. --

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And up Yes, midst really with York of further. comment so those an Lottery can’t the upon That is our team we’ve conversations we that’s battery extension. we’re the And work correct. New month. as in past, in continues the this to reported

time. questions I call further to this over are There at will no Vince the Sadusky. turn

Well, And our doing as really it. operating great a on continue fundamentals really built terrific Great. thank across job joining in really, IGT. at strong We half confirms first and portfolio solutions revenue gets juncture. the And your opportunities this And the products portfolio. really for all team strong job. for of in interest feel again, pursuing you our we for very discretionary We appreciate credit a to do and a like our us for costs. always, to team thank want incremental managing the performance

macroeconomic our have strengthened margins the we contend expectations. significant with profit balance our challenges, sheet. exceeded We As

there's team returns and Our execute to lot track that think treasury record see. as goals multilevel front that deliver continue done shareholders. job we our currently the our great and the And a opportunity has on capital on horizon we're on to we trends on to a of we

all have I hope of you and rest IGT in interest great your for again summer. thanks a So,

This concludes today's conference call.

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