IGT will approach 2022 trading with a three-pronged strategy of “grow, innovate, and optimise”, according to the company’s CEO Vincent Sadusky.
Issuing a statement in the NYSE-registered gambling technology group’s full year results for 2021, Sadusky explained that IGT had experienced an “accelerated recovery” over the past 12 months.
The firm recorded total revenue for the full year of $4 billion (2020: $3.1bn), of which $2.68 billion ($2bn) was generated from its Global Lottery division, with the Global Gaming and Digital & Betting segments contributing $628 million ($483m) and $163 million ($114) respectively – this amounted to a total profit of $918 million (-$91m).
Commenting on the group’s plans for the coming year, Sadusky said: “For the remainder of 2022 and over the next few years, we will remain focused on profitable growth with strong cash flows and returns in all our business segments.
“Our efforts are best characterised by three main pillars: grow, innovate, and optimise. We plan to grow IGT’s margins by leveraging innovative content and solutions, enhancing our operational efficiency and diligent capital allocation.”
In particular, the CEO has stated that IGT is making and will continue to pursue “significant investments” in R&D and talent in its Digital & Betting unit, due to this segment being its highest growth area.
The company asserts that it has a “robust pipeline” for 2022 in this department, and aims to create a “solid foundation” to support the division’s continued growth and trajectory over the coming years.
Expansion in the US market has been a key driver of growth for this area of IGT’s business, with the firm having secured market entry into Michigan and Connecticut, whilst appointing Joe Asher as President of Sports Betting and Gil Rotem as President of iGaming – stateside development will continue to be a key focus of IGT moving forward.
“We look forward to expanding with new customers, building on our long-term partnerships and allocating capital to support their growth,” Sadusky commented on the progress made in Digital & Betting.
North American operations are also a focal point for IGT’s Global Gaming business, with the firm planning to expand its presence in the “core video market” and improving its multi-level progressive offerings in product sales and recurring revenue markets.
Turning away from the US and towards Europe, IGT plans to monetise its market leadership in the Italian proximity payment sector via the sale of this segment of its operations to PostePay S.p.A – Patrimonio Destinato IMEL, expected to complete in Q3 2022.
For its flagship Lottery division, meanwhile, IGT expects continued innovation in this space, as well as more widespread adoption of iLottery products, increased player engagement and market share gains in instant ticket services.
Sadusky underscored the significance of these iLottery solutions and instant ticket services as part of IGT’s global strategy for 2022, asserting that the two products offer a “broad appeal” and “high entertainment value” to the firm’s players.
“Our mission is to strengthen our global leadership positions in the industry by offering innovative content, services and solutions,” the CEO concluded.
“This mission sets the foundation to grow top line and margins across all business segments, while increasing operational efficiency and optimising capital allocation.
“We have set aggressive but achievable financial goals including impressive cash flow generation over the next few years. I have a high level of confidence in the company’s ability to deliver on those compelling objectives.”