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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 Q4 2025 Earnings: A Strong Performance

Brightstar Lottery reported a robust financial performance in Q4 2025, with revenue reaching $2,500,000,000, supported by its global portfolio diversity. Same-store sales grew nearly 4% for the quarter and 2% for the year, demonstrating the consistency and resilience of the company's global operations. EBITDA reached $1,100,000,000 in fiscal year 2025, representing a 45% margin. The company's actual EPS came out at $0.36, significantly beating estimates at $0.13. Cash flow from operations and free cash flow were $926,000,000 and $417,000,000, respectively, exceeding revised guidance.

Publication Date: Feb -25

📋 Highlights
  • Revenue & Growth: Generated $2.5B in revenue with 4% Q4 and 2% annual same-store sales growth.
  • EBITDA Margin & Cash Flow: Achieved $1.1B EBITDA (45% margin) and $417M free cash flow, exceeding guidance.
  • Shareholder Returns: Returned $1B to shareholders via dividends and buybacks, with 60% share repurchase completed.
  • Debt Optimization: Reduced net debt to $2.7B and leverage ratio to 2.4x, supporting disciplined capital allocation.
  • Italy Digital Expansion: Anticipates 1% 2026 revenue contribution from Italy B2C digital launch, targeting 3pp iLottery market share growth.

Operational Highlights

The company's OPTIMA program delivered cost reductions, enabling funds to be reallocated to growth initiatives. Brightstar Lottery is well-positioned to realize the full value of its focused lottery platform, with durable cash flows and multiple growth catalysts underway. The company's current valuation discount versus peers presents a compelling opportunity for investors, as Vincent Sadusky highlighted the company's compelling plan for growth, driven by organic initiatives and a focus on digital expansion.

Growth Prospects

The company expects revenue of $2,500,000,000 to $2,550,000,000 in 2026, with adjusted EBITDA forecasted between $1,160,000,000 and $1,190,000,000. Analysts estimate next year's revenue growth at 2.5%. The company's iLottery business has seen steady growth, with one to two jurisdictions adopting the system annually. The Italy digital opportunity is seen as a significant growth opportunity, with the potential to convert retail sales into digital sales and increase iCasino play.

Valuation Metrics

With a P/E Ratio of 9.16, P/B Ratio of 3.2, and EV/EBITDA of 5.58, the company's valuation appears reasonable. The Dividend Yield is 27.84%, indicating a significant return for investors. The Net Debt / EBITDA ratio stands at 2.8, indicating a manageable debt burden. These metrics suggest that the company's current valuation discount versus peers may be attractive to investors.

Strategic Initiatives

The company is focusing on strategic opportunities and M&A, with an eye on assets that can enhance its business. Brightstar Lottery is opportunistic on M&A, particularly in areas where it can enhance growth faster and accelerate its plan. The company's capital allocation strategy includes accelerating shareholder returns with a 60% buyback and increasing the ordinary dividend.

Future Outlook

The company's growth rate is expected to come from a combination of core same-store sales, iLottery, LMA, and Italy B2C. The Brazil opportunity is significant, with a joint venture partnership with Scientific Games, and is expected to generate meaningful cash flow, although it will take time. The company's iLottery performance is expected to improve with the refinement of its game recommendation engine and enhancement of game development, leading to margin improvements as contracts mature and the company scales its infrastructure.

3. NewsRoom

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First Look: Nvidia in Focus, WBD Bid Drama, AMD--Meta Deal

Feb -25

Source: gurufocus.com

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Market Today: GDP Jumps, S&P Record; Novo Nordisk (NVO) Pill OK

Dec -23

Source: gurufocus.com

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Forget IGT Stock and Look at ACEL Instead

Dec -20

Source: fool.com

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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

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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La Française des Jeux

A-Score: 5.7/10

Value: 4.9

Growth: 7.1

Quality: 5.8

Yield: 7.5

Momentum: 2.0

Volatility: 6.7

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Vail Resorts

A-Score: 5.6/10

Value: 4.0

Growth: 5.9

Quality: 6.4

Yield: 8.0

Momentum: 3.0

Volatility: 6.7

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SBM

A-Score: 5.2/10

Value: 3.0

Growth: 6.7

Quality: 6.2

Yield: 1.2

Momentum: 6.0

Volatility: 8.0

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SkiStar

A-Score: 4.9/10

Value: 3.1

Growth: 5.7

Quality: 5.3

Yield: 3.1

Momentum: 4.0

Volatility: 8.3

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IGT

A-Score: 4.8/10

Value: 5.9

Growth: 3.3

Quality: 4.6

Yield: 8.8

Momentum: 2.5

Volatility: 4.0

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Entain

A-Score: 3.6/10

Value: 5.6

Growth: 4.1

Quality: 2.2

Yield: 3.1

Momentum: 3.0

Volatility: 3.3

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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