International Game Technology (IGT) 12 Nov 242024 Q3 Earnings call transcript

Hello, and welcome to the International Game Technology Third Quarter 2024 Earnings Call. [Operator Instructions] I would now like to turn the conference over to James Hurley, Senior Vice President of Investor Relations.

You may begin.

Thank you, and thank you all for joining us on IGT's Third Quarter 2024 Conference Call, which is hosted by Vince Sadusky, our Chief Executive Officer; and Max Chiara, our Chief Financial Officer. After some prepared remarks, Vince and Max will be available for your questions.

multiple we morning, encounter from with please presenting if us any are locations so this bear We technical difficulties.

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

earnings differ in Forward-looking statements and risks and forward-looking those from guarantees release to are and the current our uncertainties or in are The cause our materially our differ SEC results implied results our our expressed statements. filings. from actual not latest may detailed principal that expectations in could materially

During financial this certain call, we will measures. discuss non-GAAP

You'll Investor reconciliations SEC, webcast the find press website. And the turn Relations and measures to additional release, disclosures comparable our our with filings each regarding now these I'll of non-GAAP measures, in over this our call with which including the is Vince. accompanying slides on GAAP posted

Jim, Thank the to hello you, on everyone call. and

of gaming of sell and first margin as to result adjusted for business including our corporate EBITDA X scale of results includes our X reported transaction lottery continuing billion and year-to-date months and instant business. QX and months we've into in ticket digital driven of announced the million the That solid functions improved time QX a generated draw Italy translated highlight cash in revenue XX.X%. to first This We margins of the trends flow, profit U.S. Our the attractive $X.X a for the sustained by of with the the in the margin year $XXX of growth and is games Apollo. structure first year, ops, the which and

scale continuing $XXX results our from and million lottery consolidated cash million operations over solid and include XX% business. of The X/X generated key $XXX flow the of operations the performance flow. year-to-date of free financial of highlight cash Some the observations

sale expected third the close the XXXX. the quarter of digital is business Apollo to our to end of gaming Although by of

of optimizing realigning significant key objectives OPTIMA customer our organizational taking activities is by the supporting administrative to and lottery corporate and optimize goal steps with structure sacrificing and launch of general the standards. growth functions service without costs our superior X.X. The are We long-term while already rightsize to

we fact, sales to key new and as field iLottery, support printing, such areas investing and ticket talent resources in instant are development In reallocating international services.

features and approximately whereby product in QX XX industry wages expanded Italy were and the improvement important was account lottery the being down year, such EUR year-to-date our X included both the innovative our This the to evident leadership instant reflects an growth in EUR In as of X% last first have function distribution jackpot the [indiscernible] is is XX of United structure nearly a graphics compounded first in modern about like ticket. incident grow third either and win or good EUR XXX XX continue X% year-to-date portfolio global FM Our [ X processed ], on been organic up the drivers up games, worldwide. Powerful X.X% launches achieved XX a in have sales a games. same-store bold operations. and new contracts and games QX from strategies for levers higher X.X% GaveConten by of XX% our and innovation quarter scale offset players optimization operator in drill which months X%, mostly billion improved instant The periods. systems in under revenue unfavorable game trends EUR multistate and an year. U.S. the sales months of draw jackpot impact over wages comparisons. On unfavorable about the X basis, our the EUR of over at multistate decline years. Top of States. XXX, the from Italy of X which growth global

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North the the raising lead XX $X serving the nearly evidenced to than in facilities for top lotteries lottery XX we Carolina by continue more most secured of We become our contract Lottery Education XX-year educational annually North the state's as U.S., years the system. the with successful in in technology Carolina. extension management has X industry In billion

year-to-date growth We high game growth portfolio. with our on periods, sales of with up high-performing the continued SX X,XXX our terminals them hundreds are self-service iLottery support of new system, expanded central excited sending by quarter over new its third and retailer phase Aurora in and fueled Pro machines, the next XX% to to up

procurement we a primary and upon worldwide. In of XX the marketing jurisdictions markets into has ticket of entered entity displaced content, such We new bringing X-year Elephant the its a King incidents Georgia, of success where with innovative our The X growing contract on sports other Portugal games are clients, our with Newly content performance and effectively any printing, achieved to of and us. service as capabilities. due roster among ever instant customers, days. King game data-driven We ever first look business best based reached In have for printing the Lucky stars best incumbent Elephant forward XX we new launches new our player process. lottery these area competitive which leveraging in based to during insights. instances game an

for Santo nearly XX evolution relationship. technology exciting years, We partner our have Casa's this an been and is lottery long-standing of

with industry's that make will addictive Lottery, We National capacity suite will our the with anticipated scheduled production to also printing year. will we X-year intend support the our press to new FDJ operated most games. become full the be next press volume early by more of printing in state-of-the-art operational increase than XX%. increase contract with the signed where a available French its We It

lottery lottery sales. provide capabilities need tools improved into our included that to and leadership future The our [indiscernible] is Annual they industry the Lottery future. of forward at Lotteries lottery North on is in the enabled Provincial solutions increased offerings drive valuable Paris. growth-driven including American Our Summit connected their marketing, operators display the insights Highlights business today to at Kansas Association integrated run and World events, help recent Conference that provides and City play the State on and solution focus global and land-based by digital product

updated of the games player engagement mobile environment, iLottery is closer modernize to solutions focus, land-based enhanced enhanced suite designed important players. and Our app player mobile top-rated especially our to retail another portal, features. and cloud-based was bring

brands too, Of of instance, licensed course, and our in player a got high-performing favorite attention especially omnichannel retail Infinity lot EMC games. and portfolio

will gaming high Our long-term operational leadership. while and technology, areas structure a acquisition of lottery established best-in-class charge of assets. The operations, market lottery largely printing executive in associated QX the organizational development aims such reallocation instant the sales the X.X key objectives. launch and and we've under talent This Renato and ticket Ascoli includes strategic following at intact international our OPtiMa leadership industry those lines, as new initiatives. restructuring our digital supporting Along rightsize organization and remain growth and sale of the

build we the transform pure-play we We lottery solid are a foundation company. excited as leading about can upon into

are we organization. And product developing Our margins and call same profit committed strategic strong building more with ourselves attractive leaner, and cash and to to global Max. will growth our positions for time, revenue focused At I profit turn proactively on and the remain customers. a generation that, by the to We scale, innovating lottery stronger over drive complemented initiatives dynamics. and capitalize us industry to

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

The instant summary the an presented pure-play being call XX, continuing of results and to now the parsed printing inclusive in A accepted revenue instant business. and items or be operations, reflect control and also like separation press basis. gaming wager solely have some other going draw classifications needed operations sale. sales our earnings wager with to Product a you it Slide financial going in we beginning that continuing few changes sales, property, system cash license include of are and understand have of multistate flows associated unless pure-play regard, lottery that item. seen interest financial on we price purchase upfront noted. and to and we'll franchises requirement revenue, are are $X business for a business and related Result during information moved IGT of forward. presenting costs, our SG&A committed focusing as differently sale As trigger now the presented Not the of financial on held operations certain is divestiture note discontinued quarter, a items revenue Mega a today's under lottery particular from from and within ticket results related represent digital presenting drivers are service accounting otherwise adopts amortization liabilities intellectual generally will appreciation and a a of be our categories: gaming debt following is Service which license gross of discontinued expense terminal today's assets fee the reflect on amortization, and of sales the to third integrated the the only release, to included agreement and revenue. In operations Million and reduction this forward. The principles, ops. Therefore, intangible sell into digital ticket jackpot revenue. U.S. the based billion results Powerball gaming information X better dynamics which provide R&D based presented assets sale statements. but to the activity provides of profit, bit close to assets revenue,

only sales OPtiMa fueled draw due a of year-to-date year, higher $X $X.XXX million to are rose slide. and period. On taken timing elevated $XXX but In of foreign X of addition, X.X, same-store markets, U.S. revenue believe Insta We our not the the Canada, the the into in million, world. insight U.S. discuss And KPI sales such quarter, $XX XX%, we $X.XX game the and million X breakdown Italy categories: geographic from $XX $X provides restructuring modified in better the is QX the main business. found to this rest have into through the third using a I year-to-date million, we atport walk prior changes $X.XXX more KPIs can adjusted pronounced. bridges detail bottom a the period sales billion. in revenue EPS better Remainco finally, revenue a primarily financials, activity detailed multistage going to quarter. believe it sales will to how be million per you as $X.XX earnings release. prior press X-month third in charge same-store on and exchange contracts today's versus increase extensive the recast a managing impact in year-over-year I'm including in restructuring million profit grew ticket of year. $XXX with associated the revenue aligned also instant in prior to generated from in product an by I pretax in share we off due with from the of that would from in basis, same-store over this that down jackpot continuing income activities service which XX% moving adjustments year-to-date the next driven impact basis, ongoing $X.XX as This by to operating you year highlight related X.X% are of revenue and volatility an Europe. in is year-to-date bit. underlying reflective was with the the Italy. page, declined operational charge performance before the driving see and the to of million right-hand printing removes indicator like period of growth year-to-date ops the nonwager-based $XX Other related On grew a recurring is I the in primarily portion service of ticket more compared not couple services. In rose diluted in this revenue to achieved slides. But billion

that investor on bridge interest. this KPI Given EBITDA, the the depreciation have discussion to component. would categories on and to of out focus our also that the presented adjusted like amortization financial exclude to accommodate this we I point added performance

the face want statement. income to they food of So the

footnote costs from the $XX in year. the an year statements You benefit payroll impact high on major million of of $XXX million, profit by will declined the find to in in filed statement to Service by million current X-K DNA multi-stage U.S. later margin flow-through the Year-to-date income indication prior today. activity be item adjusted in elevated financial the and EBITDA primarily the gross the prior the declined year. line in driven the from and inflationary airport $XXX

million sales R&D in impact, product $XX XX% was we was around product gross Net by year-over-year The the expense, the great while continue management expected, growth cost As million, margin the reflecting improved for showed of U.S. stable. invest first initiatives. mix. airport of continued lower, margin slightly our to legal EBITDA performance was EBITDA comparison. and X tough as multistage higher export $X discipline driven multistage adjusted resilience despite reduced months

which $XX next per optimization million the XX equivalent any million charge over $XX customer-facing share Digital, initiatives. activities taken of addressing estate pretax to We in the by include is the with stranded footprint leaner areas associated with are the the workforce general launch savings the X.X. to cost a program in after diluted X% impact the OPtiMa targets of next real we efficiencies reduction Gaming nor it and quarter sale end impact to commensurate not annualized focus and in the corporate growth the does and a The expect of proactively associated year. The geopardise restructuring with third of of support half key XX the of in profile. $XX administrative realized and $X.XX costs million tax XXXX, way does of realigning business be optimizing activities of our end other which This months, by

As full million, a which generated million working continuing tracking million to X.X We're cash we initiatives primarily in will $XXX very operations, under cash quarter, includes reminder, operations, the from strong OPtiMa operations in Ops, flow, the initial continuing from to successful X.X digital efficiencies. free gaming in implied on performance. closely $X were solely outlook. set the OPtiMa to Year-to-date, the pertain year. and ops, bolstered $XXX whereas by billion also third $XXX from and operations target tracking reached capital X.X initial discontinued focused cash and both continuing approximately for was which the that In

a continuing majority remarks, vast million of in shareholders As free balanced are this which ops allocation focus key for of opening flow. mentioned so our reflected remain in capital cash more Vince accounted flows returns his to the dividends year. of strategy XX% year-to-date by of consolidated cash than cash $XXX driven paid far Shareholder as the

gross Following we a the sales used communicated, & the to closing $X.XX being return portions proceeds of previously the in Gaming cash to manner debt to of Digital significant as to capital and allocate transaction, IGTs with shareholders. to proceeds intend receive billion, repay balanced

net facilities. continuing adjusted the debt with successfully profile. improve reduction. subsequent ops redemption X.X% closing debt due have in XX, undrawn September of balances through for will September, to to In due under pro and the and issuance sheet in which properly using the align secured X.XX% senior EBITDA We $XXX a committed of XXXX. maturity sense million on cash our of basis solid our of in debt refinanced $X $X.X reduction, we credit It leverage $XXX significantly billion, forma million, as is transaction at to consisting a debt order further anticipated and look capacity million from debt in strengthen balance our notes of portion X.Xx our XXXX of makes $X.X debt gaming at unrestricted billion Pro billion forma $XXX leverage XXXX. Liquidity with the reduction, is notes this debt

continued for QX the in with still year reflecting includes offset draw comparison the in instant multi-stage for million, Significant forecasted increase be in revenue quarter same-store improved sales challenging $XXX sales operating year. $X.XX product U.S. the $XXX in be to is time, full EBITDA expected a and sales but million first $XXX on expected billion. $X.XX adjusted is airport mix operations timing experienced level introducing is a ticket recovery quarter, and flow-through at below $XXX product to profit Adjusted for very volume certain fourth expected U.S. and U.S. to in billion of multistage the gains, which Italy, lower an the EBITDA are activity million single-digit to is by Canada and revenue prior continuing fourth million, the another For jackpots. XXXX and momentum low $X.X outlook the the reflecting basis. unfavorable with and full costs.p For to to billion of billion margin $X.XX year, high we

providing proxy stock compensation. To summarize, and outlook a sheet, concludes of given to reflective align structure cash prepared like both interest opportunities are more metric profile adjusted well as and balance on for cost robust not is proactively my forward-looking it are market well noncash to in with believe and simplified related as flows. This an positioned EBITDA, we results smaller because cash such low taking questions. we that capitalize line the a activities are the continue leverage more business are to restructuring steps it deliver profile and Operator, We adjustments our activities forma due remarks. open strong to profit volatility please financial to removes items this and pro for as ongoing for operational that D&A reliable strong

of Instructions] Your first Barry Jonas [Operator question with line from comes the Truist.

capital just a M&A and Also, touching [indiscernible] or focused forward? the for and on repurchases company. Barry. you on strategy your about moving about little how like Patrick for post-deal bit an lottery dividend Could strategy look would a thinking what just allocation talk you're share could

Yes.

again, again. -- me all, of so let First up So wrap

highlighted balance billion very at to from a ourselves as result going a contracts will a CapEx expect debt upcoming support a of the with sale, balanced last proceeds capital we which which perspective put the in and in years repay of front fact in expected least to focused of believe a in $X of We that strong cycle, And sheet are allocation position we Italy. through us our of to continue that to the forward we large renewal of couple the is U.S. the approach.

fully mentioned would preponderant allocated returns. transaction the We cash will bit the and of to we a it's that get terms be shareholder we and very strategy cash forward, that much to the allocation. think But our costs about inputs closer be can again, conveyance that. closing cash our specific after to in leakage portion going elaborate of We proceeds on some before buyer be disclose process We also to tax provides to more like additional remaining around return the continue shareholders. focused balanced to to preliminary approach capital paying to

I'll -- regard to with just yes, regard yes, M&A. question your With second add in

feel So growth in both we the portfolio our traditional is solid. areas like and the very areas

areas these the It's about We as capabilities. iLottery investment we've our Our other capabilities in look internationally to putting investment been incremental including and sales capabilities continue well, how our X years. at in product growth for we in on very capacity enhancing talked investing continued areas the and the side.

makes its So over excited we to course company it the but where level the an of enable feel opportunity the if sense the is we us. we potentially M&A post get balance has capabilities, that year in issue currently the done are that there's anticipate very the an also good is. we've about see And ROI there's got us for the very, will like where sheet reasonable to having to we closing, engage work leverage

potential do growth to the always think the to but have we we able inorganic sheet think I it. that on again, opportunities balance So towards open capabilities, be

great. That's Okay.

walk business the the guidance As puts think of XXXX. takes for the I my Could some you you're follow-up, for considering? had through and I

Yes.

has if back, years think has over intact. sustainable. think forward X So remain the that is step growth last look to I we XXXX, you been the dynamics -- say you or industry the industry the that so We achieved

operations multistate maintain you of X% think luck last very that our that XXXX been have since it's very Italy, the about jackpots X% believe without other say, to enjoyed marketplace, really exciting a the significant and of I I It's year, 'XX exciting gone a and growth. us. lottery. draw And $X I greater America. operate of CAGR mature significant certainly, that, think somewhere even just I incredible that the several where kind run and been of since this we really jackpots when lottery opportunity North in than that the we level CAGR So against advertised, lottery drive sales that that in growth has that billion where been with we've level plus over consolidating. have the think years. than between think same we the I'd to in able markets that influence And don't over But

our capabilities going in the to -- And as basis ticket of a likely a fourth the to the unique sales. for as XXXX. Also, us will increase well points $X many, on muted they launches quarter into and at take a jackpot instance we're And And modestly of I in up a from optimizing place business though in lottery quarter, fourth point, from be $X I we continue operator, XXXX. ticket work our to opportunity price we that, customers an our those to and incremental continue of quarter. think exciting of operate April really drug of the see that to third in an our continuing as incremental that be trends customers. is areas to think, our launches, [indiscernible] enables portfolios point megamillion more announced go-forward price around insights North one our plant [indiscernible] there's will the the I America think, with and and as automation we things think even provide into good, see knowledge knowledge I games, quality that's to starting forward in multistage the

ago. place XX that's more play. the in since has to think cost introduced second addition I that So a we catalyst. adjustment be it's And this a taken years higher will than And price only -- to positive product think

I think have. that game several there's enhancements will the

in So we larger will jackpots. believe result

think quicker. frequently. more So occur will that that jackpots will the we grow We think

there's players as also growth continued some outlook got, growth We for printing opportunities to iLottery. that, side of think, top And the wins improved then I on high think win. we opportunities on well announced for we've other as good

think all point I those So path XXXX things out encouragement our to growth. into continued to the looking around

question next Stantial Stifel. from The comes Jeff with

Maybe starting off as second Patrick's a to there. question follow-up

on higher the as Focusing a the deceleration and lottery thoughts subject curious kind any mix you how rate point into it, tickets? of overall that into helpful. much up price of price just noteworthy terms or have I'm change shift any or seen American be recently Just point North of business. there tickets higher corollary, gains any, call to more has contributed in would trade on growth in

Yes.

drive point and, launches, in variables So Italy, especially as last that things as Those of in frequency [indiscernible] in again, play game. high-priced wins, that X it's new local think X a the our in or the where portfolio matter. a volatility over there's well there's we -- changing we New or each with kind for of levels course, robust we games portfolio, terrific lotteries and experience really all payout Jersey insight whether as game certainly $XX or $XX constantly mix instant years. timing and high refreshing the the had of Indiana, different ticket That for helped And in we've the both many But in including X of tickets price going on places noted all to XX like terms innovative so growth markets price -- the in also operate to X X points example, levels different good where points. of they've changing have higher end back in the games, point. lower price about well low the and Italy range. as really We've are high price in had EUR and significant to states, price really the end to

capability refresh the really portfolio, they're States it's players to out the many large again, continuing the interesting I jackpot and win. got markets So they've make in very super small United have have budgets. the entertainment and to it ensure advertising, think pointed especially jackpots your marketing getting I And value, best ability the for so as good that our been multistate

that's think, So of that coverage, the coverage multistate and I just become in And something for that's area. through recognition organic really get to Jackpot higher important, levels think play price [indiscernible] as I is invaluable I mentioned, I going had point, in here super helpful think we've I do in increase I bad and that run price just XXXX Mega's as that forward. the be will some well with think think and

I'd So and to I end. point. price guess the of price answer And But at say an low of thing. higher high important in kind end driver, different been the been only the your question, cadence I think certainly hasn't again, it's it points the conclusion, proper launch

is for just as good the experience, marketplace, we continue very is again, as the a can we've see where our control lottery player a operation experiences by certainly growth, entire in learned absolutely really to and something different where mature Italy, well sustain mature growth. we to players this very win As evidenced and

then you Great. could just And from turning to RFP for us helpful. update a latest And Italian lottery follow-up, That's all issued? contract, you the expectations us. that's on to expect for your be when that

Yes.

I has and been law set. got remind that nonrenewable term on license, folks, has it's we've We've just effective the that X% -- rate. think been I year the a the great gotten to think So insight

that past our to billion with in $X keep with consistent and Mariano our minimum fee, joint perhaps intend partnership that's we've we upfront place. So venture announced the Novomatic, partners, [indiscernible]

able place take of be the into XXXX. phase, And end half we'll where XXXX. of we come this that either will next early the by by requirements we the first terms In the or XXXX will timing, year think award see to believe the of out

The question with comes next Chad Macquarie. Beynon from

Aaron This on is for Chad.

were As contemplating price period that input will is have consumers a to get used significant you those you Did price the the pretty Millions some digestion start think And changes? $X noted, through. Mega impacts in do positive $X. from to new increase be there in they process the making ticket changes. flowing as you some as any There's before

Yes.

of the of them lottery lotteries that a directors increases made across for in I make on of our jackpots from changes the $X of that have We digest is regarding again, of committee price we world, and multistate lot -- certainly as decisions just that game. information directors part certainly and including sales provide were upon North up a They there request. We frequent many the with know upon input past potential anticipate, increases historical impact and and States is process basis. from for And directors be, in the the well past. which in that experience, and initially. the interact of the lottery $X lottery prior the the United ticket body last evaluates decline to to So America. lot support experience the and That across performance a a based based there a will do that research commission

has the look on a excess increase more importantly, of the associated the that's the if revenue been with However, sales you But at recovered history, ticket decline. in net has increase outpaced, basis, over in in time.

experience an increase but I and the initially be then group value net-net, and we it's that will impact. very based anticipate initially, there a of decline recovery that been sales volume, think dollar upon can the a again, overall So a anticipates net-net, positive sales absolute in

question with Katz next David Jefferies. from comes The

just on Italian Lotto to did the I updates. want double-click

that the early on your remain closed. IronClad open is You had structure expectation? is or for an given that information the that partnership would that matter as out prior. Is still expectation some Or

Yes.

we have a the venture in the that, existing understanding member that joint will we've continue. end with our I disclosed past, partners expectation of with think

but been smooth So right, does it's right? that out still closed, it's the of about picture volatility of a what Or it expect we current what volatility that expectation, the can time. just it -- a years, line can that There's would it's we moment. to sort or until is Can out U.S. anything jackpot years. Is should X remain should over always over that market talk we large sort -- bigger for the And right? X that is there question, draw if is.

Yes, that jump to I'll to it to anything Max back. comment free add and has feel

the as well. And softness instant think, the or as the in quarter certainly in have of and X% overall, very some over recent the I launches into how CAGR. needle And positive trending in grown what's on in jackpot move Yes. North So focused are the very to well the America focused in decades first really multistage What's Michigan. It's really the you -- that look X new on like really seen pretty of large the been wages as well. states California, the considering instant to Florida, the X% the last especially New Texas, slowdown growth, I fourth large really think half strong to in at jurisdictions history, bit of Jersey, growth recovery We've year. territory driven, And a third that's quarter particular. John as that we clip instance a think, When so in a years. the games saw I into we're on amount do

sales in experienced, to as think predict. we can we that in the and all to longer side, I continue think maybe do powerful So by hard I term. it's and that years. had primarily the we've a but in growth think couple on the CAGR the composition. we'll jackpot and rate to over multistate then in and category kind the the very change games the We the of And that been well low higher course drive mid-single-digit by also of to of was last And of the interest achieved, a themselves the aided dropping has by as environment have over that changes instant see construct jackpots. objective committees of large larger the recovery, [indiscernible]

a Now still, chance. of course, get

the you control can't payout. the frequency So of

So higher we come those random. of levels to jackpot appreciate course, it is,

the period past the a to drive interest I that change to that of facilitate entering of course, mega $X in frequent likely $X been would And made helped the do has in will as also offset, levels. more increase decreasing think And rates. billion-plus the the on the then However, be well. to side, game have

I should doing hard anything. you but So predict, be to know to doing it I think levels. Max, if sustain to I have think what is don't the it's organization jackpot higher help the

I'd add data like Yes, to of couple just points. a

first this So of make XX% despite the total that disclosure represents this just part point to of sales. importance starting up our new the of wanted with business, all, we quarter, of the of to the it

into that it's important put So perspective. to

small our a revenue. our volatile but it's total of portion of a business, part it's again, So

components, is payout innovation extra made what characteristics. as to the are have excitement players expressed is From meant but of the including the levels a The additional that price create enough incremental on that forward. sold, we business. time by all The which jackpot on drives second very so the point point to it believe, some create roll again, that and of seen right we the doesn't price now casual the so into for and past, of also games, reset level forth in term, level through which fatigue, up time probably going which the game game. also once at excitement happening But long other are price it's is is that the cyclical as different long to time, is hit and

improve business we So been large has a the to the being in that definitely recent that past. there some potential again, for going forecast the fact obviously forward, that for what we export go it appreciate despite don't to fact time back hit, and is

[Operator next Instructions] with question Stauff line Joe Your Susquehanna. the comes of from

pricing number then not of, say, is up Mega you be U.S. think, pricing business, flattish, that say, increase think slightly to about, growth get in If And they're say, in within expectation growth of segment? obviously volume, will one. multistate, trying going little quarter. Canada forward? wanted moving, I in the there'll the the posted, I business? thinking. a and what of say, triggers if say, which price, update Is it demand. I but I X.X% lot more you a to number has on volume wondering, Powerball could certainly multistate, a us makes about, call the jackpots offset larger, and Is you was think it, I out two, be will bit. you changing pots, decline price is the sense growth slight you to the on it obviously, indicated most instant the some that that that Max. exclude just Vince think terms and lot -- heard but the if where that they're mostly, That's Vince or ask say, your How could of within that, do talk about and the

thing. Yes, sure

increase has Powerball Mega maybe the $X of has out yes, Millions price points of and announcement So point you've the not.

they're we stick as as pricing. the far this at So current point, with understand to going

X growth, So we'll the X that's price jackpot the all to in to for now, have hard regard of multi-stage that's been is increase think, I predict. future yes, again, announced. With

volatility. -- a of particular, years, of we points couple and is different it's been the games at it's and instance a been over in price or achieved including IoT growth look One X a with in America, the So combination combination last of for significant things. pretty varying game in that's been North X

a that payouts, games. willing And so frequent, off for enjoy are want more who and to like more players games. Players gravitate meaningful trade stakes interested are those payout frequency really things really towards less that frequency smaller with in

lotteries a understanding and management tools. amount and insight of research the that think continued I do, terrific our So the through we provide data that

management enable I and of and of X lotteries on most mixes our operating to world experience to based an really provide with see the and we're that the the impact interesting optimum provide able them largest frequent to in of in fresh your think execute Italy, those game keeping as and again, excellence important experience to upon amount the has saleout players, insights, for we're players. operating able continue we'll levels these great portfolio

So drag there consolidation in periods where this think of been at on and certainly are area we've negative of time state we're there's of the kind as And seen Max that growth we're prospects pointed non instance. out I overall nothing multistate the there's seeing business a the levels. impact moment. games the in earlier, that But seeing indicates a of play of a evolution long-term

the So we also mature only by, management expand continuing the right games significant a we we've had with with not again, introduction great, experience increased retail driven which launches, coupled very we've in Italy, retail as markets, again, great market, sales mature really the game portfolio the in with especially distribution well, great performance. -- retail a had has distribution, and but Cadex market, to very with -- cadence think in of to a

around volume analytical we're, I to having things. with levels helped our those installation before some and things customers I activities. identify I diagnostics, so provide opportunity retail think there's more our self-service done sellout North get in ahead that large work think low those with recently conversations of to think, of America. our capabilities, those really And machines, occurs including ticket automation, do good I of But replacing And we've increased can those plenty more and customers days, where things think, we the like enhanced and

behind in of X or follow-up think, it. appreciate previously for I what things ahead sale. Maybe maybe the gaming units. to the of quick XXXX August in the suggest timing maybe terms that close Is just there as you, I that anything on of an Okay. described are of timing close terms

Yes, sure thing.

world. we I like by any States around closing we is close have said date. approval different the don't We past, many quarter, regulated of think United period, said have think think, pretty we quarter sometime gaming I the in in of we've that third standard the industry we to we receive the fact end and XXXX, heavily would third modification a from of and in -- the name jurisdictions that for the that

shareholder process. Every regulatory soon, pretty coming approval through been they've Apollo's the or so. have We November vote their think, going And continue announced that up industry. this has I in they XX

a have receiving do they history successfully approval. So of

no So closing to estimated date. that modification

from comes Domenico And your with final the of line question Equita. Ghilotti

I had on intensity. question the capital a

You years. next of the your free affecting cycle couple were mentioning renewal flow the cash over

your renew to special to of provide take existing portfolio. so sense intensity a So what us the just of Can we should lottery situation, is if renew I capital some the to you expect? out lot

sure. So

where of cycle long upfront -- it excluding CapEx, year. average CapEx, see a million kind of XXX with about, back to forward, of to runs kind a run a down million gone We come rate around up have and to that up We more of $XXX XXX. that $XXX at is of down around fees, pure per average number years going going couple into the back run normal probably come again we'll now long-term Xx to right then

So that's where we stand right now.

a it's are a the And we transaction, close highlight fact on to to as that's important levels the of be the it's keep eye that expect the So we that CapEx why including rate important so the fees leverage. can below today of result so also us to CapEx Xx run the cycle going we for a maintain absorb on factor incremental forward, still through basis below the in and our upfront coming and potential target up. the for

call the Vince closing CEO, concludes the Sadusky, question-and-answer This to turn remarks. I'll session. for

in interest your for much very all you Thank IGT.

separation we entity our the on very continue basis. we're we've I and a excited discussed in of think our pure-play in go-forward strongly very as to lottery And about believe activities past, to grow. capability the

you forward to updating soon. look we So again

This call. you Thank conference for joining. today's concludes

may disconnect. now You