IGT hits financial targets despite losses in 2017

International Game Technology (IGT) has said it was able to achieve all financial targets in 2017, despite posting year-on-year losses across revenue and income.

Revenue for the 12 months to December 31, 2017, came in at $4.94bn (€4.01bn), which represents a loss of 4% on the $5.15bn achieved in the previous year.

Operating income stood at a loss of $51m, compared to a positive of $660m at the end of 2016, while adjusted operating income also dropped by 12% from $1.17bn to $1.03bn.

Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) fell 5% year-on-year to $1.68bn, but net debt was cut by 3% to $7.32bn.

Net income per diluted share came in at a loss of $5.26, compared to a plus of $1.05 in 2016, while adjusted income per diluted share also dropped from $2.33 to $0.86.

However, despite the year-on-year losses, IGT was able to report a “strong” end to the year, with the fourth quarter presenting growth across a number of key financials.

Revenue in the final three months of the year increased by 2% to $1.35bn, while adjusted EBITDA climbed 7% to $452m.

Elsewhere, operating income hiked 41% to $194m, although adjusted operating was down 4% to $268m in the period.

Marco Sala, chief executive of IGT, said: “We had a strong finish to 2017, amplifying the progress we made throughout the year.

“We delivered outstanding results in our lottery business and improved our key performance indicators in the gaming business; these achievements were enhanced by disciplined expense management.

“Bringing innovative content and technology to market remains the cornerstone of our strategy.

“Last year, we executed well along this path and established a solid foundation for growth in 2018 and beyond.”

Alberto Fornaro, chief financial officer at IGT, added: “We met all of our financial objectives for the year, including the top end of our EBITDA expectations.

“Net debt was slightly better than our outlook, despite the early Scratch & Win renewal in the fourth quarter.

“The results for the fourth quarter and full year highlight the diversity and resilience of the IGT franchise.”

Related article: IGT hit by impairment charge as losses widen in Q3