IGT reports $26.79M loss in Q1

INTERNATIONAL GAME TECHNOLOGY PLC posted a $26.79 million loss in the first quarter of 2017.
INTERNATIONAL GAME TECHNOLOGY PLC posted a $26.79 million loss in the first quarter of 2017.

PROVIDENCE – International Game Technology PLC reported a $26.79 million loss in the first quarter of 2017 in an SEC filing on Thursday.

The loss comes as a 69 percent decrease in losses year over year, as the company lost $86.45 million in the first quarter of 2016.

The company reported a $1.15 billion revenue in the first quarter of 2017, a 10 percent decrease year over year. IGT also reported that net loss per diluted share was 0.27 cents.

“The first quarter of 2017 has been a dynamic period for us,” said Marco Sala, CEO of IGT in the filing. “Our revenue and profit are consistent with the pattern of the year that we described in March. Year to date, we’ve strengthened our leading positions in global lotteries and begun the rollout of a new generation of gaming machines. We are monetizing non-core assets that will allow us to significantly reduce debt, and we are adopting a new business model for our future participation in the social casino space.”

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The report partially attributes losses to record jackpot activity in 2016. The company also disclosed that it has agreed to sell its subsidiary, DoubleDown Interactive, to an affiliate of DoubleU Games for $825 million in the second quarter of 2017, which will also result in an ongoing royalty revenue.

The company also reported that it is carrying about $7.4 billion in net debt, which it expects to be between $6.95 billion and $7.15 billion by the end of 2017.

Alberto Fornaro, chief financial officer of IGT, said in the report, “Disciplined asset and operational management are a top priority for the company, and this is evident in the strong first-quarter cash flow. We are updating our outlook to incorporate the DoubleDown transaction and the impact of increased taxation on gaming machines in Italy.”

Chris Bergenheim is the PBN web editor.

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