LONDON - International Game Technology PLC (NYSE:IGT) announced today that its subsidiary, IGT Global Solutions Corporation, has entered into a seven-year agreement with the Colorado Lottery. The contract, which includes the option for seven additional one-year extensions, will see IGT revamping the state's lottery system through July 12, 2032.
Under the terms of the deal, the Colorado Lottery will adopt IGT's Aurora™ central system, replacing its current infrastructure. This new system is part of IGT's OMNIA™ suite, designed to provide the Lottery with enhanced data insights and a unified player view to bolster its product offerings and marketing efforts. The upgrade aims to deliver a seamless omnichannel lottery experience for Colorado players.
Colorado Lottery Director Tom Seaver expressed enthusiasm for the technology upgrade, anticipating more convenient player options and sustained sales growth to support Colorado's outdoor initiatives. IGT COO Jay Gendron highlighted the importance of the partnership and the potential of the new products to elevate the Colorado Lottery's operations.
Moreover, the agreement covers a comprehensive upgrade of all lottery retailer equipment throughout Colorado and the introduction of a mobile convenience app with Scan and Redeem functionality. This feature will enable players to scan lottery tickets and directly transfer winnings to their bank accounts via ACH.
IGT, a leading name in the global lottery market, provides technology to a significant portion of U.S. and international lotteries. This new contract with the Colorado Lottery reinforces the company's position in the industry and its commitment to advancing lottery technology and player experiences.
The information for this article is based on a press release statement.
In other recent news, International Game Technology (IGT) has secured a deal to implement its video lottery terminal (VLT) central monitoring system for the Ohio Lottery Commission. The contract, extending through June 2033, enables IGT to oversee more than 10,000 VLT machines across Ohio's seven racinos. In addition, IGT reported strong first-quarter results for fiscal year 2024, with revenues nearing $1.1 billion, primarily driven by their Global Gaming and iGaming segments.
The company also extended its contract with the Mississippi Lottery Corporation until 2029, which includes the provision of online gaming systems and instant ticket services. Amid these developments, Stifel upgraded IGT's stock from Hold to Buy due to reduced risks associated with the company's Gaming & Digital spin-off and the Italy Lotto contract tender.
However, Susquehanna and Truist Securities adjusted their price targets for IGT, with Susquehanna lowering it to $33.00 from $40.00 while maintaining a positive outlook, and Truist reducing it from $26.00 to $23.00, keeping a Hold rating.
These adjustments are in response to IGT's strategic developments and market conditions. These are among the recent developments for IGT, which navigates through its business restructuring, contract tenders, and financial performance.
InvestingPro Insights
In light of International Game Technology PLC's (NYSE:IGT) recent agreement with the Colorado Lottery, current and potential investors might be interested in some key financial metrics and insights from InvestingPro. The company's market capitalization stands at $4.04 billion, reflecting its significant presence in the gaming and lottery industry. With a P/E ratio of 17.59 and an adjusted P/E ratio for the last twelve months as of Q1 2024 at 15.66, IGT is trading at a multiple that suggests a relatively high valuation compared to near-term earnings growth.
InvestingPro Tips indicate that while analysts expect sales growth in the current year, the stock has been experiencing considerable volatility. Moreover, IGT has been consistent with its dividend payments, maintaining them for 10 consecutive years, which could be appealing to income-focused investors, especially with a dividend yield recently noted at 4.0%. The company's revenue for the last twelve months as of Q1 2024 was reported at $4.315 billion, with a gross profit margin of 48.95%, highlighting its ability to maintain profitability.
Investors considering a stake in IGT may take note of the company's performance relative to its 52-week range; it has been trading near its 52-week low, which might suggest a potential entry point for those looking for value opportunities. Moreover, there are several additional InvestingPro Tips available for IGT that could provide deeper insights into the stock's performance and prospects. Interested investors can unlock these tips with a special offer: use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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