IGT reveals revenue growth despite DoubleDown losses in Q3

International Game Technology (IGT) has posted year-on-year revenue growth for the three months through to September 30, despite suffering losses within its DoubleDown social casino division.

Total revenue came in at $1.3 billion (€1.2 billion) in the third quarter, 5% more than in the corresponding period last year.

However, the company did report that service revenue fell from $267 million to $241 million in the three-month period, largely due to fewer daily active users at DoubleDown and a drop in the installed base.

Elsewhere, operating income climbed 26% year-on-year from $130 million to $164 million, with adjusted operating income also up 9% to $286 million.

IGT also reported that adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 4% to $430 million, while net debt was cut by 3% to $7.9 billion.

For the year-to-date, through to the end of September, overall revenue stands at $3.8 billion, up from $3.3 billion at the same point last year.

Service revenue was up from $2.9 billion to $3.3 billion, with product sales also climbing from $445.4 million to $518.8 million.

Marco Sala, chief executive of IGT, said: “Strong lottery performance across the world, a larger global installed base, and increased sales of gaming machines drove another quarter of solid revenue and profit expansion.

“IGT’s leadership positions in lottery and gaming machines were evident at the recent gaming and lottery trade shows.

“The engaging player experiences and technology solutions IGT creates are the cornerstones of our growth strategy, and we are encouraged by customer enthusiasm for our innovative new products.”

Alberto Fornaro, chief financial officer at IGT, added: “Higher profitability enabled us to maintain our leverage ratio despite the significant interest and tax payments of the quarter.

“Based on our performance to date, we remain comfortable with our adjusted EBITDA outlook for the full year.”

Related article: IGT acquires assets from Leap Forward Gaming