Q3 2021 International Game Technology PLC Earnings Call
Good day and thank you for standing by welcome to the International game Technology Q3, 'twenty One earnings call. At this time all participants are in a listen only mode. After the speaker's presentation. There will be a question and answer session to ask a question. During this session you will need to press star one on your <unk>.
The phone keypad. Please be advised that today's conference is being recorded if you require any further assistance. Please press star zero I would now like to hand, the conference over to your speaker today, Mr. Jim Hurley. Please go ahead.
Thank you and thank you all for joining us on Igt's third quarter 2021 conference call, which is being hosted by Marco Sala, Our Chief Executive Officer, and Max Chiara, Our Chief Financial Officer. After their prepared remarks, we are going to open the call up for your questions.
During today's call, we will be making some forward looking statements within the meaning of federal securities laws.
Forward looking statements are not guarantees and our actual results may differ materially from those expressed or implied in the forward looking statements based on a number of factors and uncertainties, including those related to the effects of the COVID-19 pandemic.
The principal risks and uncertainties that could cause our results to differ from our current expectations are detailed on our latest earnings release and in our SEC filings.
Also during this call we may discuss certain non-GAAP financial measures in our press release slides accompanying this webcast and our filings with the SEC each of which is posted on our Investor Relations website, you will find additional disclosures regarding these non-GAAP measures, including reconciliations of these measures with comparable GAAP.
And now I'll turn the call over to Marco Sala.
Thank you, Jim and Hello to everyone.
By now you have seen our announcement and they think of you would agree we had a great quarter.
Broad based momentum drove a significant improvement in key financial and performance matrix in this quarter.
Revenue grew more than 20% with a double digit gains in each business segment lottery same store sales rose, 9% and the wet up 19% from the third quarter of 2019, demonstrating an improved underlining.
Business growth profile.
Global gaming revenues increased over 30% and segment profit margin reached the highest level in seven quarters.
This was helped by our Optima cost saving program, which I'm pleased to report that we completed during the quarter high of schedule.
We are now breaking out our digital and I'm betting business that will provide you with a more comprehensive view of those activities and we should deliver the strongest growth in the quarter.
We recently announced some high profile and UI is underscoring our increased focus on this segment and weakening as clean base that India is a fast emerging business.
We believe that the significant profits in the period operating income was more than double than prior year's 11.
Adjusted EBITDA of 407 million <unk> margin of 41%, which is among the strongest though we have achieved.
Leverage improved to 3.8 times at the lowest level in the IGT plc study and below the four times threshold, we've been targeting for some time.
On the heels of excellent year to date results and our solid financial condition. The board reinstated a quarterly cash dividend signaling their confidence in the company's prospects.
It is an important milestone we are at peak to be in the position of returning capital to shareowners.
That being a bit deeper into lottery same store sales were the strongest in our main U S and Italy markets, both up double digits in the period, a lottery momentum remains strong with the same store sales up over 50% compared to last year and more than three times.
So Q3 19 elevens.
We recently won several new contracts, including a 10 year facilities management contract with the Connecticut, The lottery, where IGT is displacing an incumbent we are excited to become a day or a thruster. The gross five net with our suite of a war that class lottery.
Shows.
We entered into a seven year agreement to upgrade the F. D. G is a current lottery central system to Igt's advanced Salvador, our platform featuring announced Omnichannel capabilities.
This builds on our over 20 E S partnership, but with the operator of the French National Lottery, the fourth largest in the world.
We also secured a new multiyear eastern tickets a service contract with the West Lotto, Germany is the largest lottery extending our 13 year partnership.
Our cloud the baeza eastern split for them before the first of its kind went alive in Georgia during the quarter building on the successful deployment, we intend to roll it out to our other I lottery customers over the next several months.
Our investments in digital are being recognized.
G T mobile lottery solutions, who won the lottery product of the <unk> 2021 International Gaming Awards.
It is nice endorsement of our increased full queues in this arena.
The year over year gains for our global gaming segment that impressive, though we also continue to see sequential improvement in many key P is the global installed base of water up led by North America, New and expansion activity and good progress with the multilevel progressive.
<unk> are also strong gas.
On the product sales from the a S. B went up nicely additive by growing demand for our peak series of cabinets.
The improving keep your eyes are consistent with the overall recovery we are seeing in the market. These along with the Optimus savings has driven a substantial improvement in golf and gaming profit margins there.
Q3 operating income margin was up over 1000 basis points sequentially.
Everyone was excited to be back at G. E D E F.
While attendance wasn't that of previous shows up in D. C. As attendees, who are serious in their intent and customer sentiment was quite good it was a productive show for us.
Among the key I G T I, a liza was the most of the bus off all the multilevel progressive we have ever showcased that we.
We had the 18 in total at the Shaw a mix of both leased and photo seed games.
A y and the wall for ran it clips were among the most popular MLP titles at the show.
There was a lot of excitement around our new outdoor we are responding to the high performing peak family with a Supersized peak 65 cabinet the launching in conjunction with the 25th anniversary of the wheel of Fortune was loss.
The new <unk>.
Diamond AD awesome mechanical reel cabinets was another standout and we expect will extend our leadership in this type of category.
And there was tremendous interest in cashless.
As a result of the wallet and the IGT cashless payment solutions received a lot of positive feedback from potential customers.
IGT is uniquely and well positioned in these AD out we are the only company offering a fully integrated turnkey cashless solution.
It matters, a convenience and these abuse longwall at one account one step.
The strength of our offer to receive an important industry recognition recently being named product innovation of the year at the Global Gaming Awards in Las Vegas, and technology provider of the year at the International Gaming Awards.
The creation of a stand alone digital embedding segment that we led you. All appreciate that this scale growth profile and attractive margin structure of the business.
We are already a leader in the B to B ecosystem and that is reflected in the results with revenue up over 50% year to date, and reaching a 32% adjusted EBITDA margin.
Margin should strengthen as the business gains scale, even as we increased investments to support growth.
Success in a gaming comes down to content.
Our ability to leverage our proven land based titles in the digital space provides a competitive advantage.
We are seeing success.
We are seeing success with the long standing franchisees such as wheel of fortune.
Along with the newer titles like Fortune coin and we are increasingly focused on developing digital native content to differentiate and enhance our leadership position.
We are also bolstering our offer with third party content and recently sign a multiyear content distribution agreement with <unk>, a leading creative creator of digital games.
Earlier this week, we announced the Gila wrote them joining the company as president of I gaming user.
He's a nearly two decades of industry experience with a triple later dot com and the better 365, we led but drive the strong growth we expect over the next several years.
We have an equally impressive and UI and sports betting where do we recently appointed the jewelry issue.
Long standing industry veteran as president of the business.
His knowledge of the market will be a great asset as we focus on rolling out our turnkey retail and digital solutions across the U S.
I'll do it is an important part of the turnkey retail fathom and the interest in our crystal flex plausible to apparel and.
And peak about a top is strong.
Excuse me.
Players can watch their favorite sports, while easily placing a sports wagers enjoying as Lotto, playing video poker and keno all on the same machine.
It provides a very reach play it has be idiots.
Crystal Flex one top prize in the best Consumer service technology category at the G. G B gaming and Technology Awards.
With the strength of our year to date results. So we are raising our profit outlook revenue profit margins cash flows and the leverage are all expected to be better than pre pandemic levels.
And with a compelling growth outlook across business segments, we are all well positioned to create significant value for all stakeholders.
Our results would not be possible without the tremendous dedication of the IGT team and they are resolute focus on our core values.
We asked a lot of our people during the pandemic.
Now it is the time for us to recognize them, we intend to provide a special bonuses to employees.
Colbert by existing incentive consent compensation plans were impacted by four logs and salary reductions and last year.
These will amount to about 5% of the annual base salary for over of a waterfall or for somebody workforce.
Sustainability, good corporate citizenship and the use of G matters have always been important wage peak.
And that will influence the were recently recognized with a reduced interest rate on our term loan facilities.
And the way the today's news of Restating, a quarterly cash dividend that we are also giving back to shareholders.
This is an important signal of management's and the board's confidence in our financial condition and business outlook, we look forward to expanding on our long term outlook and providing additional insight into our capital allocation plans at next week's Investor day.
Now I'll turn the call Nicole over to Max.
Thank you Marco and Hello to everyone and for myself as well.
We delivered another strong quarter of financial results in Q3 as demand for our products and services drove revenue higher across our segments.
Operating income increased more than 140% year on year on high profit flow through of global lottery same store sales growth, including more of a positive mix impact from Italy lottery sales and strong operating leverage across the business segments, primarily associated with savings from the Optima program.
A high level summary of our key financial results as shown here on slide 11, the year over year comparison on a quarterly and year to date basis highlight the outstanding resilience of our business.
Year to date cash from operations increased 78% to more than 600 million and free cash flow more than tripled to $445 million.
Our quarter and year to date results have been impressive across several key financial metrics driven by solid revenue growth as well as disciplined cost management, including the achievement I had a schedule of over 200 million and optimized structural cost savings.
During the quarter IGT delivered nearly $1 billion in revenue over 200 million in operating income and more than 400 million in adjusted EBITDA.
On a year to date basis revenue and profit grew significantly over prior year levels and exceeded pre pandemic 2019 levels, we achieved operating income and adjusted EBITDA margins of 24, and 43% respectively bolstered by higher operating leverage.
Now, let's review the results of our business segments in detail.
Sustained strained compare demand drove global lottery revenue up 14% to 652 million global same store sales increased 9% year on year, and 19% compared to Q3 2019 with growth across many geographies and games.
Italy Lottery has continued to benefit from strong demand generating 16% same store sales growth even after other gaming alternatives gradually return with the reopening of gaming halls at the end of the second quarter.
This was primarily fueled by increased instant ticket sales. We also saw nice growth in lottery revenue as a result of an expanding customer base.
<unk> sales grew a solid 8% in North America, and the rest of the world given by continued driven by continued momentum and the benefit of higher jackpot activity in.
Instant ticket product sales revenue was also up nicely.
Strong same store sales as well as the higher mix of Italy business, which generates more revenue per wager led to margins well above the normal range operating income increased 19% to 234 million and adjusted EBITDA rose, 12% to almost 350 million with a strong 53% adjusted EBITDA margin.
The progressive recovery continued during the quarter with global gaming delivering the highest quarterly revenue and profit level. Since 2019 revenue rose, 34% to 289 million driven by solid increases in active units yield number of machine units sold and Asp's.
Terminal service revenue increased 44% on a higher number of active machines and growth in total yields they installed base in North America increased over 500 units sequentially, driven by North America, new and expansion activity and additional placements of multiyear progressive units.
And the rest of the war they installed base was up over 400 units year on year and stable sequentially.
Currently over 95% of our U S and Canada Casino installed base is active with closures still impacting some cruise ships and capacity restrictions still limiting the number of active machines in Canada.
We sold around 5700 units globally in the quarter compared to about 3700 units in the prior year unit shipments were driven primarily by strong replacement demand from casino and VLT customers.
Profitability measures were significantly higher in the quarter as revenue growth and savings realized from the Optimus structural cost savings program propelled higher operating leverage.
Today, we are reporting the results of digital and bathroom, there's a dedicated segment for the first time.
We decided to create a standalone segment given the leadership positions, we hold is a bit to be provider in the market and in an effort to provide greater visibility to this high growth business.
Digital and betting results were previously included as part of Global Gaming, We recently filed recast historical financial information related to this re segmentation with the SEC, which you can find on the Investor Relations section of our website.
In the third quarter revenue increased 37% year on year to $43 million driven by double digit increases across both I gaming and sports betting.
Growth in our gaming was primarily driven by expansion into new markets, including Michigan, Alberta, Finland, and Sweden, but also saw a nice contribution from existing customers in jurisdictions, like New Jersey and Pennsylvania.
While sports betting was mainly bolstered by existing customer in the quarter, we are rapidly expanding our footprint with many new customers recently announced.
High flow through of revenue growth drove profitability significantly higher we open.
Writing income doubling over the prior year to $12 million and adjusted EBITDA, increasing 66% to $15 million, the digital and betting segment delivered 36% EBITDA margins in the quarter bolstered by lower jackpot funding and the timing of marketing spend this is an impressive achievement from an emerging business.
We delivered $113 million in cash from operations, and 66 million and free cash flow during the third quarter.
Cash during the quarter were impacted by the timing of collection cycles in Italy, and higher cash outlays as working capital items return to more normal levels.
Very strong year to date free cash flow of almost 450 million coupled with approximately 900 million in net proceeds from the sale of our Italy gaming business has allowed us to reduce our net debt by over $1 2 billion. This year, we received a Europe 100 million payment on the Italy asset sale during the quarter.
<unk> of the December 2021 to date as a reminder, the final payment of Europe 125 million is due in September 2022.
Leverage has improved to three eight times, well below pre pandemic levels and exceeding our target of four times.
And as Michael mentioned IGT boarded over that actors as brain stated at 20 cents per share quarterly cash dividend to be paid in early December.
Our credit profile has greatly improved over the last year due to a significant reduction in net debt increase liquidity and extended debt maturities during the quarter, we successfully amended and extended our term loan facility, adding the unique feature of an ESG margin adjustment. This is a sound testament to our sustainability.
<unk> I am proud happy to say that we have already achieved an increase in our ESG rating lowering our borrowing costs another half a million dollars on an annual basis.
In summary, I would like to highlight that we reached a significant milestone this quarter with the year to date revenue and profit exceeding pre pandemic results. During the same period in 2019, the performance of each of our business segments has been impressive with global lottery achieving record results on strong player demand global gaming delivering sequential.
Surely high results each quarter, since 2019, and digital and betting driving significant growth in a nicely profitable business.
We achieved our 21 goal of delivering over 200 million and Optimus structural cost savings ahead of schedule and expect more benefits to materialize as the global gaming segment continues to scale, we'll talk a bit more about this next week during our Investor day.
We generated record level of cash flow, so far this year, which allowed us to significantly pay down debt and improve our leverage to three eight times.
And lastly, IGT board of directors, having stated at 20 cents per share quarterly cash dividend signaling high confidence in our long term outlook and providing a nice return of capital to shareholders.
Now, let's turn to slide 19, where we have provided our 2021 full year outlook.
On the back of very strong year to date results, we are raising our outlook as we currently expect to deliver revenue of approximately $4 1 billion.
Operating income of about 900 million and total depreciation and amortization of between $707 $25 million.
Outlook reflects our expectation that Q4 revenue and profit will be pretty much similar to Q3.
As a reminder, the first half of 2021 benefited from some discrete items in our lottery business between gaming Hall closures in Italy elevated multi state jackpot activity and LMA performance in the U S. These.
This represents a positive impact of about 300 basis points on our operating income margin for the full year.
Free cash flow for the full year is expected to reach record or near record levels with cash from operations expected to range between 850, and 900 million and Capex coming in below 300 million.
We also expect leverage to remain below four times, given the profit and cash flow guidance I just mentioned.
While it is unfortunate that we cannot be physically together next week for our Investor day, we are still very much looking forward to the virtual event, where Marco and I along with other members of the IGT Senior management team will share the company's business strategy long term growth prospects and capital allocation plans.
That concludes our prepared remarks, operator would you. Please open line for questions.
At this time, if you'd like to ask a question Press Star then the number one Andre telephone keypad.
First question comes from Carlo Santarelli.
With Deutsche Bank.
Good morning, everybody Hey, just just one for me is I know theres going to be a lot of things you guys kind of want to couch until next week, but.
Matt you talked a little bit about you know kind of the benefit in the first half of this year 300 basis points to the operating margins and my question was kind of along those lines. As you guys think about next year and.
Obviously, the tough comparison in the first half and obviously really strong results here in the second half.
How do you kind of thinking.
Throughout the year.
Talking about this year I think we need to elaborate a little bit on the performance of our lottery is a default. He was all your question.
Let me say that in a more stable environment in recent months I'm talking about our Q3, even class October we are seeing a lottery sales.
Early above the pre pandemic level.
This implies an accelerated growth profile and iron player consumption compared to historical trends.
We believe that the second out of this year net of jackpot represents a new baseline for the industry.
There are some discrete benefits that we mentioned in our prepared remarks, such as the extended closure of gaming goes in Italy significant LMA incentives and elevated jackpot activity is.
<unk> during the first half of the year.
This creates and I compare is on photos for us next year, but the net of those items. So we believe a lottery should grow at a mid single digit.
And since we see for the overall.
So four months in 2022.
We see a good the growth expected for the gaming, we see a strong growth expected for digital and a bad thing and therefore, we expect that the next year.
And profit to be substantially in line with 2021.
And Carlo this is Max if you do the math on the 300 basis point, you basically can get to about 165 of revenue and.
About 140 of profit, which is kind of split 50, 50 between Italy, and the U S on the discrete benefits.
Great guys. Thank you that's very helpful.
Your next question comes from Chad Beynon.
<unk> of Macquarie.
Hi, Good morning, Thanks for taking my question and congrats on the results wanted to ask about the dividend how you arrive to the 20, <unk>, which is what you.
We're distributing pre pandemic is it real is it related to kind of a free cash flow generation free cash flow estimate I know before I think it was around a 30% payout ratio just a little bit more color in terms of how you were able to announce that positive result, thanks.
So we are firm believers of.
Simplicity of the communication. So historically the company has delivered 20 cents per share per quarter.
And that was kind of a number that was baked into the expectations of their of the capital market.
If you if you look at the stock price today that represent something north of 2% of yield on an annualized basis, two and a half today.
Hopefully the yield is going to go down as the stock price potentially may increase down the road, but having said that I think does this kind of more or less in line with similar cohort companies in our in our peer group.
When you when you look at the S&P 500 dividend payout statistics as well as across the different sub industries in our leisure and entertainment a large court.
Any cases of childhood, we will provide more insights into our capital allocation plan.
Next week at Investor Day.
Okay, Great I appreciate it.
And then on the.
The optimum plan Max you mentioned that that you have.
Hit all your targets and you achieved everything I'm sure there's still more to do and you'll continue to to optimize margins. There how should we think about.
Additional flow through on gaming business coming back and I guess, the one piece of the business just wanted to ask about it seems like the installed base on rest of world.
It's still not recovered here anything to kind of help us understand when we should expect for that business, particularly the yields to be back to pre pandemic levels. Thank you.
So when we crafted the program.
We wanted to make sure that we were able to get to the milestone I'm with you.
At year and.
And.
The upside potential could be generated by as the volume scale into into the gaming business going forward, which obviously is going to be a combination of North America and international as you also highlighted so we expect a dead that there is potential out there for more savings.
To come but we also need to keep in mind at the same time that we have to face supply chain constraints.
Which are able to offset with the incremental savings that we have achieved so far and we expect that are obviously also to represent a good buffer for next year, but I think we will elaborate more on this next week at the Investor Day.
Regarding the installed base and internationally is very much related to the situation of the different countries as you know the the countries.
Generally open about that.
Some are mostly capacity type of restriction in many of the information in our jurisdictions. So it will take some.
Some more time to recover on those jurisdictions, but we feel that it will happen now over the next quarters.
Thank you Marco and thank you Mike I appreciate it.
Your next question comes from Barry Jonas of choice.
Great. Thank you.
I wanted to start with the strong lottery trends Youre seeing you know could you give a little more color on what you attribute those higher play levels is it content is it COVID-19 or consumer savings rate I, just wanted to get a sense on your thoughts around the long term sustainability.
I think this is a very good question and what do we noticed is that the consumer though whether schools too.
And then large off of a.
Lottery products and they both have more during the pandemic are the result of it is that they enjoyed the the larger all federal lottery games throughout the jurisdictions and we tested it through consumer reserve.
And we carried out a researches are in the U S as well as in Italy, and the players stated that they they enjoyed a player abuse games and they also anticipated intention to maintain a higher level of spend.
Over time and this is what is the old beating up and now that brings us to go and see that the trend that we are seeing especially in the second half of the year as the new base.
For the for the lottery, we cannot of course consider that sort of stuff, especially in Italy will have the rest of the gaming offering was closed but what we are seeing now that we are measuring.
Measuring against the 19 that provides us a level of Commvault regarding what the research indicated that some months ago and we are experiencing.
In in now for a month so oh.
Stronger results in customer satisfaction.
Great. Thanks, Thanks for that Marco and then just as a follow up how are you thinking about M&A here are there any areas.
That interest you either bolt on or something more substantial or you're pretty happy with sort of the Europe the organic.
Thanks.
Generally speaking, though we out of all people with Walter we I have we will express.
Some indication during however.
All of our Investor day, but it is clear that the digital area as well.
Some selected.
Carlo.
Actual M&A transaction could email to enforce our future outlook.
Great. Thank you.
Thank you very much.
Again to ask a question press star one on your telephone keypad.
Your next question comes from Domenico Galotti of Ecuador.
Good morning. My first question is Oh, the current lotteries, because you were commenting the call that our growth was particularly strong in our instant tickets and <unk>.
Indeed, I I saw the Lotto performance I'd say more similar with the Q3 2019, so I'm trying to understand what is driving particularly at the instant ticket for four months and if you see these new base as a sustainable as you were mentioning also for <unk>.
In general answer on the lottery.
And a second question in the guide and I'm, sorry, if I understand properly. So in for Q4, you are expecting something more similar to what similar to Q3. So this would point tool, let's say.
More and are in the $1 7 billion EBITDA for the full year, then really at one point seek said that these are the new guidance. So you're just an approximation I said broad approximation of all the full year and I'm trying to understand that there is any specific topic that is embedded in your guidance.
For example, or the Forex or the payment incentive payment that you mentioned before your employees. It is included in the 2021 number.
Oh, Okay. So Domenico I'll take the second part of the question and then ill pass back to Michael for our for your first question about the Italy lottery trend. So in terms of our revise the upgraded outlook for 2020 one.
Too just to keep it simple I would say that there look reflects the normalization of our lottery business. After the exceptional H one performance that we mentioned previously in the call include several discrete benefits.
But on the opposite side is also accounts for the possibility that despite a typical seasonal strength in our product delivery on the gaming side, which is.
Typically as later for the final part of the year and.
We have to face them potential some delivery delays due to supply chain constraints. So we have a very strong.
Finally in our hand, right now of activity, but we need to obviously balance.
The availability of components and our delivery times as there's this whole supply chain.
Complications have substantially added four weeks on the normal go to market at a time of delivery for our product pipeline.
Net net again as we said, we expect Q4 to be substantially in line with Q3 with effectively as you clearly said mm mm highlight an EBITDA for the full year around the 17 out of it.
Regarding the question on lottery is worldwide.
At the end of scratching Wiener as being a more robust than the draw based games and and now it is happening the same or you are referring to Italy.
Right.
Performance of our.
Eastern peak is a is a stronger compared to the 19 lottery is better than the pre pandemic, but not with the same trend. So this is what we ought to see that in the.
The baseline are very good.
Eastern peak at the performance of that will be.
<unk> maintained that through a.
A lot of innovation that we intend to provide the market, but at the same time also sounding lotto four months.
By the way, we intend next year, especially in Italy.
In November two to sustain.
Through good innovations, especially in the second part of the MTV is somehow sustaining the outlook.
I have generally provided.
Okay.
Thank you I, just just to be sure on the Forex us or are you not taking so are you updating I'm taking into account the current effects.
In our engine new guidance.
Oh, the new guidance is effectively consistent with the current.
Its expectations that out in the market.
Okay. Thanks.
Again to ask a question press star one on your telephone keypad.
Your last question comes from David Katz of Jefferies.
Hi, good morning, everyone.
Thanks for taking my question I wanted to ask about specifically the U S installed base.
Cause.
My sense is it's been discussed addition amount but.
It was up for the first time I think in the last several quarters.
And I just wanted to get a little more insight as to you know is.
Is that product driven is that.
Specific opportunities.
And you know without the risk of asking for guidance.
Is this what you would consider an ongoing inflection point.
And that number of units.
David.
The installed base D Z other in North America benefited from.
From two main Uh huh.
Two main factors the first is.
It comes up from the MLP expansion as you know we have invested the seriously we have presented a lot of our new products in <unk> and this is helping Gaza to sustain our our installed base.
The other part of it is around Alpha is coming from a new casino opening and expansion activities, mainly mainly in Canada. Those are there when a when I look at the installed base.
We think that you have to take into account.
Counting in port counts, sorry going for the.
Some of market structure changes in the W. L. A market so I'm, referring to New York that I would've loved island.
Expected to impact our installed base in Q4 and next year.
But if we exclude these jurisdictions we aspect of that.
In 2022 to be broadly in line with the 21, obviously, there will always be some volatility in individual quarters, but generally speaking I guess said that the outlook a weekend provider is net of these three jurisdictions, where they haven't really changed a little.
The structure of the market, what we are doing on the product and the feedback we're getting from customers that are giving guys a confidence in providing an outlook over the next quarters of 2022 all their relative stability net of these three jurisdictions.
Understood.
If I can ask a similar question.
For just a little more insight in terms of the yield on on those or the win per day.
So difficult for us to model.
Coming out of the pandemic since demand has been rather intense and concentrated.
Anything you can share to help us think about that but look at deals as you'll know now align the overall yields are in the in North America.
Q3 at a line with the Q3 19 that is a great a.
A great achievement and that I have than the previous quarter. So we tend to consider that.
Look at our heels are with some.
Some stability on the level, we have achieved so far.
Understood. Thanks, very much. Thank you bye bye.
[laughter].
There are no further questions I will now turn the call back over to Marco Sala.
Thank you for joining us today, we appreciate your interest in IGT, our third quarter and year to date results reflect strong revenue and profit momentum across the portfolio.
Improving cash flows and balance sheets are allowing us to resume returning capital to shareholders or.
Our Europe, where you can join US on next Tuesday November 16 for our Investor Day, what do we look forward to expanding on our longer term growth outlook and capital allocation plans until then have a great day.
Thank you for participating in today's conference call you may now disconnect.
Yeah.