Revenue down but EBITDA up for IGT in 3Q18

first_img IGT announces offering of €500,000,000 senior secured notes Global gaming giant IGT has reported a 5% fall in revenue for the three months to 30 September 2018 to US$1.16 billion on the back of declines in both the international and North American segments. However, Adjusted EBITDA grew 3% year-on-year to US$443 million, with the company stating that “disciplined expense management more than offset lower revenue.”IGT’s international segment, including Asia, saw revenue fall 5% to US$216 million, with gaming product sales revenue down 2% to US$65 million despite a 14% increase in gaming machine unit shipments and higher average selling prices. The company saw lower systems revenue, while gaming service revenue also fell significantly from US$59 million in 3Q17 to US$33 million this time around. RGB expecting strong 2019 despite second quarter revenue, profit decline South Korea’s foreigner-only casinos see revenues grow in August RelatedPosts Lottery product sales increased however, including 3.7% growth in same-store revenue. Operating income grew 46% at constant currency to US$56 million.Revenue in the North America segment fell 12% to US$231 million, with gaming services revenue of US$152 million compared to $171 million 12 months earlier and product sales revenue down from US$91 million to US$79 million. Operating income was US$45 million, down from $65 million in 3Q17.The North America Lottery segment was also down 9% to US$279 million, however Italy proved to be IGT’s standout performer with revenue up 4% to US$430 million with lottery service revenue, gaming service revenue and sports wagering all growing strongly.Speaking in the company’s 3Q18 earnings call overnight, IGT’s CEO Marco Sala said, “Our goal is to consistently bring innovative content and technology to the market. The solutions we presented at the recent trade shows were our strongest offer to date of market-ready games, cabinets and systems.“With strong organizational foundations in place and fully realized roster of compelling solutions, we are better positioned than ever to deliver on our goals. As our year-to-date results suggest, we are firmly on track to achieve the financial and strategic objectives we set for 2018.”Sala said the company has narrowed its Adjusted EBITDA outlook for the full year in 2018 to between US$1.74 and US$1.8 billion, “the top half of the prior range.” Load Morelast_img read more