LONDON - International Game Technology PLC (NYSE:IGT) has solidified its collaboration with La Française des Jeux (FDJ), operator of the French National Lottery, by signing a three-year contract to supply instant ticket games. The deal, which is the result of a competitive procurement process, underscores the longstanding relationship between IGT and FDJ, with a shared focus on sustainable, responsible business practices.
The contract emphasizes IGT's commitment to environmental responsibility, a key factor in FDJ's selection process. IGT's practices include sourcing paper from Forest Stewardship Council (FSC)-certified suppliers and using non-toxic inks and coatings, aligning with FDJ's sustainability goals.
Patrick Buffard, Chief French Lottery and Retail Sports Betting Business Unit Officer at FDJ, highlighted the importance of partnering with a company that not only understands FDJ's business ambitions but also shares its dedication to social and environmental responsibility.
IGT's Chief Operating Officer, Global Lottery, Jay Gendron, expressed the company's intent to support FDJ's growth and sustainability commitments through the new contract, which will leverage IGT's advanced printing facility and diverse game portfolio.
The agreement grants FDJ access to IGT's suite of instant ticket games, including the Infinity Instants™ games, which offer flexibility in game design and marketing. The partnership aims to continue providing engaging player experiences backed by sustainable business practices.
IGT has been a key technology provider to FDJ since 2000, supplying the lottery's central system hardware, instant ticket vending machines, and ongoing technological support.
As a global market leader, IGT serves a significant portion of the world's top lotteries, highlighting its extensive reach and expertise in the industry. The company's commitment to responsible gaming and innovation is evident in its operations across various regulated segments.
This news is based on a press release statement and should be considered in the context of the risks and uncertainties outlined by the company, including those detailed in its annual report and other documents filed with the SEC.
In other recent news, International Game Technology PLC (IGT) has made significant strides in its financial performance, reporting robust revenues exceeding $2 billion and operating margins reaching 23% for the first half of 2024. The gaming giant has also announced a strategic shift towards its global lottery business, with the sale of its Gaming and Digital business to private equity firm Apollo for $4.05 billion. This move deviates from a previous plan for a spin and merger with Everi Holdings (NYSE:EVRI).
IGT has also secured a three-year contract to provide instant ticket games and related services to Santa Casa da Misericórdia de Lisboa (SCML), the operator of Portugal's national lottery. This partnership aims to support the continuous growth of SCML, a partner of IGT since 2000. The contract further solidifies IGT's significant presence in the global lottery market.
In addition to these developments, IGT announced the appointment of Nick Khin as President of Global Gaming. This move is expected to bolster the company's global lottery business, which saw a 2% revenue increase in the first half of the year. However, the company has withdrawn its full-year financial outlook due to the planned sale and expects to report Gaming and Digital results as discontinued operations starting in the third quarter.
InvestingPro Insights
IGT's recent contract with La Française des Jeux (FDJ) aligns well with the company's financial performance and market position. According to InvestingPro data, IGT has a market capitalization of $4.1 billion and has demonstrated profitability over the last twelve months, with a P/E ratio of 15.54. This suggests that the market values IGT's earnings at a reasonable multiple, potentially reflecting confidence in its business model and growth prospects.
An InvestingPro Tip highlights that IGT has maintained dividend payments for 10 consecutive years, which is particularly relevant given the new contract's potential to support continued financial stability. The current dividend yield stands at 3.94%, offering investors a steady income stream alongside potential capital appreciation.
Another InvestingPro Tip indicates that analysts anticipate sales growth in the current year. This expectation aligns with IGT's strategic moves, such as the FDJ contract, which could contribute to revenue expansion. The company's revenue for the last twelve months was $4.31 billion, with a slight growth of 1.01% year-over-year, suggesting a stable foundation for future growth initiatives.
It's worth noting that IGT's valuation implies a strong free cash flow yield, as pointed out by another InvestingPro Tip. This could be particularly important as the company invests in sustainable practices and innovative game development to meet FDJ's requirements and broader market demands.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights that could provide a deeper understanding of IGT's financial health and market position. There are 8 more InvestingPro Tips available for IGT, which could offer valuable perspectives on the company's potential risks and opportunities in the evolving lottery and gaming industry.
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