International Game Technology PLC (NYSE:IGT) Q3 2023 Earnings Conference Call October 31, 2023 8:00 AM ET

Company Participants

James Hurley - Senior Vice President, Investor Relations

Vincent Sadusky - Chief Executive Officer

Massimiliano Chiara - Executive Vice President and Chief Financial Officer

Conference Call Participants

Barry Jonas - Truist Securities

Chad Beynon - Macquarie

Jeff Stantial - Stifel

David Katz - Jefferies

Joe Stauff - SIG

Operator

Hello and welcome to the International Game Technology Q3 2023 Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions]

I will now turn the conference over to James Hurley, Senior Vice President of Investor Relations. Please go ahead.

James Hurley

Thank you and thank you all for joining us on IGT's Q3 2023 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.

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

During today's call, we will be making some forward-looking statements within the meaning of the federal securities laws. Forward-looking statements are not guarantees and our actual results may differ materially from those expressed or implied in the forward-looking statements. The principal risks and uncertainties that could cause our results to differ materially from our current expectations are detailed in our latest earnings release and in our SEC filings.

During this call, we will discuss certain non-GAAP financial measures. You'll find additional disclosures regarding these non-GAAP measures, including reconciliations with comparable GAAP measures, in our press release, the slides accompanying this webcast, and our filings with the SEC, each of which is posted on our Investor Relations website.

And now, I'll turn the call over to Vince.

Vincent Sadusky

Thanks Jim and hello to everyone joining us. Well, we're reporting strong Q3 and year-to-date results today.

Excellent momentum and key performance indicators across all segments drove year-to-date revenue up 8% when adjusted for the sale of Italy Commercial Services. That includes 5% growth for our Global Lottery segment, a 12% increase for Global Gaming and 17% expansion for PlayDigital. Q3 was aligned with year-to-date trends with revenue up 6% net of Italy Commercial Services. That translated into good profit growth.

Q3 operating income rose 13% or 20% net of Commercial Services and achieved a record operating margin for a third quarter period. Year-to-date, operating income was up 8% or 13% net of Italy Commercial Services and the operating margin expanded over 100 basis points to 23%.