International Game Technology PLC (NYSE:IGT) Q3 2023 Earnings Call Transcript

Massimiliano Chiara: Very good. And Joe, in terms of the supply chain dynamics, just to keep it very simple, on the gaming side, the supply chain is easing. Last year we — in the second half of last year, we were running at about $20 million a quarter. We are less than half right now, but we’re still having some supply chain cost in the system — baked into the system, and we have had them since Q1 of this year. So again, you see now the same benefit coming to fruition in Q3, and in Q4 is supposed to continue next year because of that easing process getting to the final stage and now companies are able to get back in the pre-COVID period where we were looking for opportunities to really find efficiencies in the supply chain organization. And so we expect that benefit to continue into 2024 as well. That’s what we — why we have called it a tailwind in our margin progression going forward.

Joe Stauff: I see. That makes sense. And is it fair to say that you would expect it maybe to say, the level of spending that you’re doing now, call it $10 million a quarter as you suggested, extra spending that — maybe that ticks down during the course of 2024?

Massimiliano Chiara: Yeah. It may not be a regular tick down, or constant tick down. It may be a little bit less early on in the year and more towards the second half of the year, but yes, fundamentally that’s what we expect to happen.

Joe Stauff: Great. Thanks Max. Thanks Vince.

Massimiliano Chiara: Thank you.

Operator: There are no further questions at this time. I’ll now turn the conference back to the CEO, Vince Sadusky for closing remarks.

End of Q&A:

Vincent Sadusky: Yeah. Well, thank you all for joining us today. Our Q3 and our year-to-date revenue and profit results highlight the good momentum we have across each one of our business segments. It’s a clear indication that our focus on driving growth, renovation, and optimizing our processes and scale is paying off. We’re on a solid path to delivering on our full year commitments and our on track with our 2025 targets as we remain focused on unlocking the intrinsic value of IGT’s market leading businesses. We appreciate your interest in IGT, and we look forward to meeting with many of you in the coming weeks, and have a great day.

Operator: This concludes today’s conference call. You may now disconnect.