IGT upbeat despite $290m net loss in second quarter
Marco Sala, chief executive of International Game Technology (IGT), has said that he is “pleased” with the company’s performance in the second quarter, despite posting a net loss of $290m (€245.3m).
In a results announcement, the firm said net loss attributable in the three months to June 30 is inclusive of $220m of net foreign exchange loss.
Revenue in the second quarter amounted to $1.22bn, down 5% on the $1.29bn achieved during the corresponding period last year.
Although operating income came in at $192m, representing an increase of 12% on the second quarter of 2016, adjusted operating income amounted to $264m, down 9% on last year.
Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) fell 4% year-on-year to $424m, but net debt was cut by 11% from $7.83bn to just under $7bn.
“Our second quarter results reflect strong key performance indicators for both our global lottery and gaming businesses,” Sala said.
“Lottery growth is benefiting from innovation and effective sales and product marketing initiatives.
“In gaming, the global installed base was up and unit sales of gaming machines were higher, as were average selling prices, all supported by strong demand for new cabinets.
“Overall, we are pleased with the results of the first half, and we expect a more robust product offer to support stronger sales and profit levels in the second half of the year.”
Alberto Fornaro, chief financial officer at IGT, added: “We’ve made a lot of good progress on many levels so far this year; we are lowering our debt and we are enhancing cash generation through disciplined asset and financial management.
“We are maintaining our outlook for adjusted EBITDA and net debt for the year, and have modestly reduced capital expenditures to account for certain timing shifts.”
Meanwhile, IGT has linked up with a subsidiary of Telling Telecommunication Holding Co. to launch a new lottery venture in China.
Working in partnership with Shenzhen Tian Lian Cai Investment Co., IGT will provide lottery products to regulated lottery centres across the Asian country.
In addition, the new joint venture will be able to conduct independent market operations, business development, and technological innovations in China, with all operations to be subject to national regulatory and licensing approvals.
Pending this approval, IGT expects the venture to launch in the third quarter of this year.
Walter Bugno, chief executive international at IGT, said: “As the lottery market continues to change, and the regulatory framework evolves, we believe that this partnership will be ideally positioned to successfully participate in China’s bright lottery industry future.”
Telling will own a 51% interest in the new venture, while IGT will hold a 49% stake.
Huang Shaowen, chairman of Telling, added “By working together, we will bring the world’s most advanced technology, games, and operational best practices to China, enrich players’ experiences, help advance the Chinese lottery industry into a new era, and enhance its contribution to China’s social welfare.”
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