IGT posts $774M Q3 loss on write down

PROVIDENCE – International Game Technology PLC reported a $774.4 million net loss for the third quarter ending Sept. 30.

Much of the loss was attributed to a non-cash, non-tax deductible impairment charge of $714 million to write down the company’s North American Gaming and Interactive reporting unit to fair value. The company said the write down of goodwill has no impact on the company’s operations, cash flow, ability to service debt, compliance with financial covenants or underlying liquidity.

The company also reported $118 million in net foreign exchange loss for the quarter.

In 2016, IGT reported a third-quarter net profit of $18.4 million.

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Net loss per diluted share in the 2017 third quarter was $3.95, compared to a 1 cent net loss per diluted share in the 2016 third quarter.

Revenue in the 2017 third quarter declined 4 percent to $1.2 billion. Net debt for the company declined 8 percent to $7.3 billion. The company cited the previous sale of Double Down Interactive LLC as a principle reason for its year-over-year decline in revenue. DDI accounted for $66 million in revenue during the 2016 third quarter.

The company also reported a lottery revenue decline of 4.4 percent year over year from $545 million to $521 million.

“Our strong third quarter performance reflects the scope and balance of our business,” said Marco Sala, CEO of IGT. “Our largest global Lottery operations are growing steadily and acceptance of our newest gaming machines is expanding around the world. The significant increase in Gaming and Lottery product sales demonstrates clear interest in our systems and technology solutions.”

Chris Bergenheim is the PBN web editor.