International Game Technology PLC (NYSE:IGT) Q1 2024 Earnings Conference Call May 14, 2024 8:00 AM ET

Company Participants

James Hurley - SVP, IR
Vincent Sadusky - CEO
Massimiliano Chiara - CFO

Conference Call Participants

Barry Jonas - Truist Securities
Jeff Stantial - Stifel
David Katz - Jefferies
Chad Beynon - Macquarie
Joe Stauff - Susquehanna
David Hargreaves - Barclays

Operator

Thank you for standing by. My name is Krista and I will be your conference operator today. At this time, I would like to welcome everyone to the International Game Technology First Quarter 2024 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there'll be a question-and-answer session. [Operator Instructions]

Thank you. I will now turn the conference over to James Hurley, Senior Vice President of Investor Relations. James, you may begin your conference.

James Hurley

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

Thank you, Jim, and welcome everyone to the call. Fiscal 2024 is off to a strong start with Q1 results that exceeded our outlook. Revenue up nearly $1.1 billion was better than expected, primarily on Global Gaming and iGaming performance. The 24% operating margin was 400 basis points higher than anticipated, mostly on better lottery results from Italy same-store sales, and strong North American jackpot activity in late March, in addition to the timing of separation and divestiture costs.

The company delivered record operating income of $273 million, excluding separation and divestiture costs. Based upon Q1 performance exceeding expectations, we've upgraded our full year 2024 revenue and profit goals, which Max will walk you through later. Focusing on the operating segments, Global Lottery revenue rose 6%, driven by Italy game innovation and strong product sales growth.