Global gaming giant International Game Technology (IGT) saw its net revenue fall slightly in 2Q18, down 1% to US$1.2 billion on the back of declines in the North American and International markets.
The results were negatively impacted by the sale of social casino business Double Down and new revenue recognition standards, with North American revenue down 18% to US$254 million. It included a fall in gaming service revenue from US$208 million in 2Q17 to US$169 million, while product sales fell 17% year-on-year to US$85 million.
International revenue declined 6% to US$199 million with gaming service revenue in the segment falling from US$43 million to US$34 million and product sales down 10% to US$67 million.
Conversely, IGT’s North American lottery business grew 5% to US$309 million on the back of product sales more than doubling, while Italy rose 9% to US$441 million.
Group-wide Adjusted EBITDA increased 4% to US$442 million with Adjusted operating income remaining flat at US$264 million.
IGT CEO Marco Sala praised the expansion of the company’s global lottery business.
“The North America Lottery and Italy segments each exceeded our expectations in the period,” he said. “The North America Gaming installed base grew sequentially, and we have a compelling roster of new, for-sale video reel games coming to market in the second half. The strong start to the year gives us confidence we can achieve our 2018 strategic and financial goals.”
Chief Financial Officer Alberto Fornaro added, “With better-than-expected Adjusted EBITDA growth of 10% in the first half, we are raising our full-year outlook for the underlying business.
“As a result, we are able to absorb the negative impact of foreign currency translation and maintain the Adjusted EBITDA range of US$1.7 billion to US$1.78 billion for 2018.”
RelatedPosts
