IGT claims ‘year of transformation’ despite pro forma losses

International Game Technology (IGT) has said that the company experienced a “year of transformation” during the 12 months to December 31, 2015, despite having suffered pro forma losses across key financials.

Full-year revenue amounted to $5.1 billion (€4.5 billion), which represents a pro forma loss of 12% on the $5.8 billion posted in the previous year.

Pro forma adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) came in at $1.7 billion, a drop of 16% year-on-year on the $2 billion posted in 2014.

Elsewhere, operating income for the year amounted to $533 million, a decrease of 51% on the previous year, while adjusted operating income was also down by 19% to $1.1 billion.

Net debt for the year totalled $7.7 billion, with IGT not providing this figure for the previous 12-month period.

The pro forma figures represent the combined results of GTECH and legacy IGT for the period prior to the second quarter of 2015.

Reported results for the year tell a different story, with revenue coming in at $4.7 billion, 23% up on the previous year, with adjusted EBITDA also up by 16% year-on-year to $1.6 billion.

Reported adjusted operating income increased 22% to over $1 billion, although operating income was down 24% year-on-year to $540 million.

Marco Sala, chief executive of IGT, said: “We ended a year of transformation with a strong quarter for our lottery and gaming operations, enabling us to reach the high end of our EBITDA guidance.

“We established IGT as the global gaming leader with a commitment to being a customer-first organisation and to deliver the content, technology, and expertise that drives player demand.

“We are confident that we have established a solid foundation from which we can continue to lead the gaming industry and grow our business.”

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