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IGT reports second-quarter 2018 results

“The strong second quarter results reflect continued global Lottery expansion that is accentuated by disciplined expense management,” said Marco Sala, CEO of IGT.

United Kingdom | 07/31/2018

International Game Technology released Tuesday its financial results for the second quarter ended June 30, 2018. Today, at 8:00 a.m. EDT, management will host a conference call and webcast to present the second quarter results.

“The strong second quarter results reflect continued global Lottery expansion that is accentuated by disciplined expense management,” said Marco Sala, CEO of IGT. “The North America Lottery and Italy segments each exceeded our expectations in the period. The North America Gaming installed base grew sequentially, and we have a compelling roster of new, for-sale video reel games coming to market in the second half. The strong start to the year gives us confidence we can achieve our 2018 strategic and financial goals.”

“With better-than-expected Adjusted EBITDA growth of 10% in the first half, we are raising our full-year outlook for the underlying business,” said Alberto Fornaro, CFO of IGT. “As a result, we are able to absorb the negative impact of foreign currency translation and maintain the Adjusted EBITDA range of $1,700-$1,780 million for 2018.”

Consolidated revenue was $1,202 million, down 1% from the prior-year quarter

  • Flat at constant currency and scope (adjusted for the sale of Double Down Interactive LLC (“DoubleDown”))
    Negatively impacted by $33 million due to ASC 606
    Reflects strong lottery performance in North America and Italy
    Adjusted EBITDA rose 4% to $442 million; Adjusted operating income flat to the prior year at $264 million
  • Adjusted operating income up 2% at constant currency and scope
    Strong lottery performance more than compensates for ASC 606 impact
    Improvements in operating expenses

Interest expense was $106 million compared to $116 million in the prior-year period

Provision for income taxes was $52 million compared to $84 million in the prior-year period

  • Prior year impacted by gain on the sale of DoubleDown and accrual for Mexico tax litigation

Net income attributable to IGT was $161 million in the quarter; Adjusted net income attributable to IGT was $57 million

Net income per diluted share of $0.79; Adjusted net income per diluted share of $0.28

Cash from operations was $120 million in the first half of the year and capital expenditures were $259 million

  • $366 million (gross) upfront payment for the Scratch & Win license in Italy paid during the quarter

Cash and cash equivalents were $568 million as of June 30, 2018, compared to $1,057 million as of December 31, 2017

Net debt was $7,530 million as of June 30, 2018, compared to $7,319 million as of December 31, 2017

Source – Igaming world

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