PROVIDENCE – International Game Technology PLC posted net income in the second quarter of $195.2 million, or 79 cents per diluted share, reversing a $252.2 million loss in the same 2017 period.
Revenue for the gaming and lottery multinational company fell 1.4 percent to $1.2 billion in the three months ended June 30. Currency fluctuations helped make the company results seem slightly better overall, with service and product revenue declining 3 percent on a constant currency basis year over year.
“The strong second-quarter results reflect continued global lottery expansion that is accentuated by disciplined expense management,” said IGT CEO Marco Sala. “The strong start to the year gives us confidence we can achieve our 2018 strategic and financial goals.” Company Chief Financial Officer Alberto Fornaro added that IGT’s performance allows it to maintain its adjusted EBITDA range of $1.70 to $1.78 billion for the full year (adjusted EBITDA is a company metric that adjusts net income by adding back the value of income taxes, depreciation, amortization and other expenses).
IGT broke out currency exchange rate adjusted operating results for its four operating divisions:
- North America Gaming & Interactive, revenue of $254 million, a drop of 18 percent, operating income of $66 million, a 13 percent decline
- North America Lottery, revenue of $309 million, an increase of 5 percent, operating income of $80 million, a 1 percent gain
- International, revenue of $199 million, a decline of 6 percent, with operating income of $36 million, a drop of 21 percent
- Italy, revenue of $441 million, a 3 percent increase, operating income of $131 million, an 8 percent improvement
The company board of directors also declared a quarterly cash dividend of 20 cents per ordinary share for shareholders of records as of Aug. 14.
Cash flow from operations fell 62.9 percent year over year (based on a restated 2017 second quarter) to $120.2 million. And while the company made principal payments on long-term debt totaling $1.1 billion in the quarter, it also took on more long-term debt, leaving it with a long-term liability of $8.1 billion, compared with long-term debt of $7.8 billion one year earlier.
Mark S. Murphy is PBN’s editor. You can follow him on Twitter @PBNMurphy.