IGT hit by impairment charge as losses widen in Q3
International Game Technology (IGT) has cited a non-cash impairment charge of $714m (€603.1m) as the main reason behind a sharp rise in losses in the third quarter.
Operating loss in the three months through to September 30 amounted to €556m, a drop of 439% when compared to a positive figure of £164m in the same period last year.
Revenue at IGT also fell 4% year-on-year from $1.27bn to $1.22bn, but net debt was cut by 8% from $7.94bn to $7.34bn and adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) remained level at $428m.
Adjusted operating income fell 10% to $258m, with adjusted income per diluted share also down 11% to $0.40.
However, despite the mixed results, IGT chief executive Marco Sala was upbeat about the quarter, highlighting a spike in sales across gaming and lottery.
“Our strong third quarter performance reflects the scope and balance of our business,” Sala said.
“Our largest global lottery operations are growing steadily and acceptance of our newest gaming machines is expanding around the world.
“The significant increase in gaming and lottery product sales demonstrates clear interest in our systems and technology solutions.
“We expect our sustained investment in innovation, led by a customer-first, player-centric focus, to drive continued momentum in both lottery and gaming.”
Alberto Fornaro, chief financial officer at IGT, added: “Thanks to a favorable product sales mix and reduced operating expenses, adjusted EBITDA improved from the prior-year period, after considering certain non-comparable items, such as the DoubleDown sale.
“Based on the year-to-date results and current exchange rates, we expect to achieve adjusted EBITDA of $1,640-$1,680 million for the full-year period.”
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