Slot supplier International Game Technology PLC revealed during a virtual investor day that it is considering a spinoff of its IGT PlayDigital interactive business and IGT PlaySports sports betting business. IGT officials say an IPO for the digital and sports betting businesses is “under evaluation” as part of its overall strategic plan.
In documents published during the event last week, IGT said it expected to complete a “realigning” of its digital and sports betting business within 12 months, which would support “evaluation of a potential separate public listing of the business.”
In September, IGT said it was creating a dedicated digital and betting business segment, made up of its iGaming and sports betting activities: The company plans to create a dedicated management team for that part of the business.
IGT said the new structure would help it attack the “high growth” online gambling industry. The company recently hired Joe Asher as president of sports betting and former bet365 executive Gil Rotem as president of iGaming.
The IGT PlaySports technology currently runs about 50 U.S. sports betting operations, both retail and online. Current customers include market leader FanDuel Sportsbook.
The potential restructuring and possible public listing for IGT comes in the wake of rival Scientific Games’ shedding of its sports betting business last month.
Also at the virtual investor day, IGT reported i financial goals through 2025, including revenue of between $4.6 billion and $5 billion in 2025, reflecting a mid-single-digit compound annual growth rate.
IGT said it expects to achieve cash from operations ranging from $850 million to $1 billion in 2022 and cumulative cash from operations of around $4 billion from 2022 to 2025, with free cash flow of approximately $2.4 billion in that time. It also plans to reduce net debt leverage.
“IGT’s industry leadership is built on a legacy of innovation and trust,” said IGT CEO Marco Sala at the event. “Through greater player engagement, responsible management and best-in-class content, services and solutions, we are well-positioned for profitable growth.
“Our diverse portfolio aligns with attractive end-markets and our strategy is to grow, innovate and optimize. Over the next four years, we are confident we can deliver accelerating organic growth, significant margin expansion and robust free cash flow to drive stakeholder value and increased shareholder returns.”
