International Game Technology PLC (NYSE:IGT) Q4 2022 Earnings Call Transcript

Vince Sadusky: Yes, I would say with regard to PlayDigital, the legalization of iGaming in incremental jurisdictions in North America is likely slower than we would have thought a couple of years ago. And that’s why we think it was really a great sign and really important for PlayDigital to make so much progress in 2022 around the games. It’s really all about the games and the platform. And having our deep library on the land-based side I think allows us to continue to have success on PlayDigital. Our incredible market share that that business has developed has largely been based off of the success we’ve had with our deep library on the land-based side. And with the success of titles like Prosperity Link and Money Mania, you’ll see those games poured over to the digital environment.

And we believe, those will continue to have great recognition by consumers, as well as the investment we’ve made in our platform. So now, I think we’re a very valuable provider to our digital casino customers with our aggregation capabilities for third parties. We’ve got so much €“ so many games, so much content that we’re working to make available to our customers through iSoftBet’s both library and their ability to produce current games and the integration of their class-leading platform, enables us to provide analytics, and I think great feedback and customer tools. So I do think that, our growth will continue to come through the production of great games and the increase in DigitalPlay in particular in North America. When you look at the sports betting side, we’ve had good success there as well as a B2B provider.

You’ve read about several, I think B2B systems providers that have struggled, with the technology, the acceptance of bets, the odds making especially in big game days like the Super Bowl, we €“ our system performed flawlessly. Our trading service customers are very happy. We’ve got the advantage of the hardware and the software side. I think we have over 800 kiosks deployed on the hardware side as well as powering our mobile platform and clearly, the pace of expansion of sports betting legislation in North America has slowed, but there are plenty of markets that are open. And I think there will be convergence and focus on the quality operators. So, those €“ when we think about the drivers of the PlayDigital business over the next year or two, those are the things that we’re focused on.

Chad Beynon: Great. Thank you very much. Appreciate that. And then on the CapEx the $400 million to $450 million for the year, can you help us think about the rough breakdown in terms of where the money is going? And is there any €“ what we would call growth CapEx in there on any new contracts, or I guess growth for the installed base, but maybe just some details there. Thank you.

Max Chiara: Yes. So, while in 2022, the increase in CapEx was almost in the Gaming division, as a result of our efforts to increase our installed base 2023 will be more balanced. We’ll start slowly, the long cycle of lottery contracts renewals on the back of the recent extensions. So there will be some money allocated to Georgia and New York, some of the contracts that we recently extended, and that will make a big part of it. The other part will continue to be on the gaming side as we continue to invest in our growth and to further develop our installed base.

Chad Beynon: Great. Thank you very much.

Operator: Our next question comes from the line of Barry Jonas from Truist Securities. Please proceed.

Barry Jonas: Hey, good morning, guys. I was hoping to get more color on the difference between the high and low end of the guide for 2023? And I’d ask, if the economy stays at current levels, could you hit or even exceed the high end? Thanks.