IGT reports revenue increase, reverses previous loss, in 2Q results

INTERNATIONAL GAME Technology reported a slight increase in revenue, and reversed a previous net loss in its second-quarter earnings report released Thursday.
INTERNATIONAL GAME Technology reported a slight increase in revenue, and reversed a previous net loss in its second-quarter earnings report released Thursday.

PROVIDENCE – International Game Technology PLC reported a slight increase in revenue, and reversed a previous net loss in its second quarter earnings report released Thursday.
The gaming company said revenue grew 0.9 percent to $1.29 billion in the quarter that ended June 30 from $1.27 billion during the same year-ago quarter. It said revenue growth reflects “strong lottery performance, particularly in Italy and North America.”
The company also shipped 8,152 gaming machines worldwide during the second quarter.
IGT reported profit of $82.9 million, or 36 cents per diluted share, reversing a net loss of $116.9 million, or 59 cents per diluted share, a year ago.
Adjusted EBITDA – or earnings before interest, taxes, depreciation and amortization – totaled $443 million in the second quarter, a 4 percent increase over the prior-year quarter, which the company said was driven by growth in service revenue.

“Robust growth in our global lottery operations, notably in Italy and North America, and the resilience of our global gaming business are the key takeaways from our second-quarter results,” Marco Sala, CEO of IGT, said in a statement.

“Service revenues, which account for the bulk of our business and are mostly supported by long-term contracts, rose a solid 6 percent at constant currency in the period. We are making good progress implementing our strategy of developing innovative content and technology that we can leverage across gaming platforms and around the world. We look forward to showcasing the full scope of our new gaming and lottery offerings at high-profile trade shows later this fall.”

Here are highlights for the four operating segments:

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  • North America Gaming & Interactive revenue fell 0.8 percent to $350 million in the second quarter, compared with $353 million during the same period a year ago. While gaming services revenue increased 3.7 percent to $246 million, product sales in this segment fell to $104 million from $116 million a year ago; 5,613 machine units were shipped compared with 6,218 units shipped last year.
  • North America Lottery revenue improved 5.9 percent to $286 million from $270 million including results from the gaming and lottery divisions. Same-store revenue growth was boosted by “continued strength in Jackpot games and instant games,” IGT said.
  • International revenue dropped 16.2 percent to $207 million from $247 million.
  • Italy revenue rose 6.5 percent to $443 million from $416 million.

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