Global gaming conglomerate International Game Technology (IGT) has announced second quarter consolidated revenue of US$1.22 billion – a 5% decline on the same period in 2016 but comfortably above consensus.
IGT attributed the decline to “new Lotto concession dynamics” and the sale of Double Down Interactive LLC, which was completed on 1 June 2017.
On a global scale, the company saw the number of units installed grow significantly, up by 2,701 units year-on-year, with global gaming product revenue increasing 5% driven by a 25% growth in terminal sales that was partially offset by lower systems sales. The company shipped a total of 8,884 gaming machines worldwide during the second quarter.
Operating income was US$192 million, compared with US$171 million in the second quarter of 2016, while Adjusted operating income was US$264 million compared to US$290 million in the prior-year period.
Adjusted EBITDA was US$424 million compared to US$443 million in the second quarter of 2016, reflecting the DoubleDown sale and new Italy Lotto concession terms that were partially offset by “disciplined operating expense management.”
Net loss attributable to IGT was US$290 million, inclusive of US$220 million of net foreign exchange loss. The company reported a net loss per diluted share of US$1.43 and earned US$0.15 per diluted share on an adjusted basis.
“Our second quarter results reflect strong key performance indicators for both our global Lottery and Gaming businesses,” said IGT CEO Marco Sala.
“Lottery growth is benefiting from innovation and effective sales and product marketing initiatives. In gaming, the global installed base was up and unit sales of gaming machines were higher, as were average selling prices, all supported by strong demand for new cabinets.
“Overall, we are pleased with the results of the first half, and we expect a more robust product offer to support stronger sales and profit levels in the second half of the year.”
Revenue for North America Gaming & Interactive fell 11.4% to US$310 million compared to US$350 million in the second quarter of 2016, with product sales down slightly from US$104 million to US$102 million. Terminal sales improved 16%, driven by higher average selling prices and increased new and expansion unit shipments. The segment shipped 5,293 gaming machine units in the quarter compared to 5,163 units 12 months earlier.
International revenue increased by 3% to US$211 million, albeit with gaming service revenue down 4% to US$43 million due to lower interactive revenue. IGT said the installed base continued to grow, led by Greece and South Africa.
Product sale revenue rose to US$79 million from US$73 million in 2Q16, driven by higher gaming terminal sales in Latin America and EMEA, including revenue recognized for gaming machines shipped in the first quarter of 2017. The segment shipped a total of 3,591 gaming machine units during the second quarter of 2017 compared to 2,989 units in the prior-year period, led by strong replacement unit demand.
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