IGT posts $252M loss in 2Q

INTERNATIONAL GAME TECHNOLOGY reported a $252.2 million loss for the second quarter of 2017.
INTERNATIONAL GAME TECHNOLOGY reported a $252.2 million loss for the second quarter of 2017.

PROVIDENCE – International Game Technology PLC reported a net loss of $252.2 million in the second quarter of 2017, a reversal of its $82.9 million profit in the same year-earlier period.

The net loss per diluted share for the quarter was $1.43 compared with diluted earnings per share of 36 cents, according to a release from IGT Tuesday.

Despite the loss, the company’s forward-looking statements in the release remained positive. “Our second-quarter results reflect strong key performance indicators for both our global Lottery and Gaming businesses,” said Marco Sala, CEO of IGT. “Lottery growth is benefiting from innovation and effective sales and product marketing initiatives. … 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.”

The company reported $1.22 billion in revenue for the quarter, a decline of 5.1 percent over the year for the period.

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The company denoted that foreign exchange issues cost it $220.4 million in the second quarter, whereas the previous year, foreign exchange issues resulted in a gain of $88.2 million. The 2017 exchange loss increased total non-operating expenses to $360 million, a sharp uptick from the $27.4 million in similar expenses reported in the second quarter of 2016.

“We’ve made a lot of good progress on many levels so far this year,” said Alberto Fornaro, chief financial officer of IGT. “We are lowering our debt, and we are enhancing cash generation through disciplined asset and financial management. We are maintaining our outlook for adjusted EBITDA and net debt for the year, and have modestly reduced capital expenditures to account for certain timing shifts.”

The company reduced its debt 4.7 percent to $7.5 billion in the first six months of the year at the same time that it increased cash and cash equivalents 68.2 percent to $494.7 million.

Chris Bergenheim is the PBN web editor.

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