IGT reports $64.5M loss for Q1

PROVIDENCE – International Game Technology PLC reported a net loss of $64.5 million for the first quarter of 2018, compared with a net loss of $23.8 million one year prior. Loss per diluted share was 51 cents, compared with a loss of 27 cents per diluted share one year ago.

Revenue totaled $1.21 billion, a 4.7 percent increase year over year from $1.15 billion. On a constant currency basis, however, revenue rell 2 percent according to the multinational gaming and lottery developer and operator.

Despite the loss, IGT remained optimistic on the company’s yearly outlook.

“Compelling content and technology solutions are driving our results,” said Marco Sala, CEO of IGT. “Lottery same-store revenue growth was among the highest levels in the last several quarters, even in our largest markets. A sharp increase in systems sales, double-digit growth in global gaming machine replacement unit shipments, and sequential improvement in the North America installed base confirm the good momentum of our global Gaming business. The positive underlying contribution from each of our operating segments provides a strong start to the year.”

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Still, net cash provided by operating activities for the London-based company with major operations in Providence fell 73.7 percent in the first three months of 2018 to $77.2 million.

The company’s North American Gaming & Interactive segment reported revenue of $244 million, a $61 million year-over-year decline on a constant-currency basis due to the sale of the social casino subsidiary, Double Down Interactive LLC, which accounted for $68 million in sales in the first quarter 2017. Operating income for the segment fell 12 peercent to $57 million.

The segment reported a total of 23,183 machines installed in casinos by the end of the first quarter, a 2.2 percent decline year over year. IGT said it shipped 3,716 units, of which 1,024 were new/expansion machines. The segment’s new installations declined 11.5 percent year over year due to “fewer openings” according to the company.

North America Lottery operations saw a 5 percent constant-currency increase in revenue to $295 million, while posting an 11 percent increase in operating income to $76 million.

The company’s International segment posted a 6 percent constant-currency increase in revenue to $184 million, with operating income increasing 145 percent to $22 million on a constant exchange rate basis.

Its Italy division saw a 4 percent increase in revenue to $483 million, with operating income growing 1 percent on a constant-currency basis to $147 million.

In other IGT news, a spokesman for the R.I. Department of Revenue confirmed that IGT was the only company to respond to the state’s Request for Proposal to run sports betting in the state in preparation of a vote on legislation allowing gambling on sports events in Rhode Island. The move comes following a U.S. Supreme Court decision allowing states to decide whether or not to legalize the practice.

Chris Bergenheim is the PBN web editor.