09:05 AM EDT, 03/12/2024 (MT Newswires) -- International Game Technology ( IGT ) on Tuesday issued a first-quarter revenue outlook below analyst estimates, despite recording higher results on an annual basis in the prior period.

The UK-based provider of gambling and lottery technology anticipates revenue of roughly $1 billion for the ongoing quarter, while four analysts polled by Capital IQ are expecting $1.08 billion. In the December quarter, revenue inclined 3% year on year to $1.13 billion, just ahead of the Street's view for $1.11 billion. The company's US-listed shares were down 1.8% in premarket trading.

"Global Lottery same-store sales are expected to be down year-over-year as same-store sales growth in Italy is offset by tough North American jackpot" comparable sales, Chief Financial Officer Massimiliano Chiara said on an earnings call, according to a Capital IQ transcript. "Gaming and digital revenue is likely to be lower than the prior year on a return to more normal seasonality in unit shipments against pent-up demand in the prior-year period, in addition to elevated IP and software licenses last year."

Per-share adjusted earnings were $0.56 for the fourth quarter, up from $0.40 a year ago. At the end of February, IGT said it plans to spin off its global gaming and play digital businesses, and combine them with Everi (EVRI) to establish a firm with an enterprise value of $6.2 billion. The deal is expected to close later in 2024 or early next year.

"We believe the recent determination to split the business and create separate lottery and gaming pure play companies, each with experienced management teams and simplified business models, better positions each company to service customers and create significant value for stakeholders," Chief Executive Vince Sadusky said Tuesday.

Revenue in the global lottery business increased 7% to $681 million for the quarter, driven by robust product sales and same-store sales growth in Italy. Global gaming revenue remained nearly flat at $390 million as higher terminal product sales and increased intellectual property revenue were offset by lower systems sales. The play digital division saw revenue decline 10% to $59 million.

For full-year 2024, IGT expects revenue to be in a range of $4.3 billion to $4.4 billion while the Street is looking for almost $4.4 billion. Last year, revenue grew 2% to $4.31 billion. Operating income margin is pegged at 20% to 21%, including a negative impact of roughly 300 basis points from pre-closing separation and divesture costs related to the planned separation of the company's two segments.

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