Supplier News
US – Revenue down but EBIDTA up for IGT in Q3
By Phil - 2 November 2018
Growth in lottery and an increase slot machine installations saw International Game Technology report a third-quarter profit that beat analysts’ predictions however revenue missed forecasts.
But revenue missed forecasts, weighed down by the timing of jackpots and increased game machine installation-related depreciation.
Consolidated revenue was down four per cent to $1,156m with IGT saying it was ‘impacted by lumpiness of product sales and timing of multi-state jackpots’ but was boosted by ‘strong global lottery performance, improved gaming KPIs, and broad-based strength in Italy.’ Net income was $22.3m compared to a loss of $803.6m last year whilst Adjusted EBITDA rose three per cent to $443m.
“Solid performance and important, long-term contracts drove very good third quarter and year-to-date results,” said Marco Sala, CEO of IGT. “Global Lottery same-store revenues for instants and draw games rose mid-single digits. The installed base of gaming machines was up, and unit shipments of gaming machines increased 10 per cent. And, we enjoyed particularly strong sales and profit growth in Italy, confirming the vitality of that important market. We are firmly on track to achieve our 2018 financial and operational goals.”
“We’ve delivered Adjusted EBITDA growth of four per cent and seven per cent for the third quarter and year-to-date periods at constant currency and scope,” said Alberto Fornaro, CFO of IGT. “As a result, we are narrowing our Adjusted EBITDA outlook for 2018 to $1,740 to $1,780m, the top half of the prior range.”
In North America, gaming machines sales generated revenue of $79m compared to $91m in the prior year although there was a 16 per cent increase in terminal sale revenue due to growth in casino replacement and VLT units, as well as higher average selling prices.
