IGT reports narrowed loss in 2018

Gaming supplier IGT reported a significantly narrowed loss of $21 million in 2018, reflecting a reduction in non-cash impairment charges, and foreign exchange gains in the year.

Consolidated revenue fell slightly, down 2 percent year on year to $4.8 billion.

IGT said it saw underlying improvement in its North America for both its Gaming and Lottery business, along with broad-based strength in Italy.

Adjusted EBITDA, increased 4 percent to $1.7 billion as a result of stable revenue and optimization of R&D.

Marco Sala, CEO of IGT said its 2018 results are in line with the outlook it provided in October.

“The year was characterized by strong global Lottery performance, resilience in Italy, and progress in North America Gaming,” said Sala.

It’s North America Gaming & Interactive Segment saw revenue fall slightly to $275 million. Product sales revenue went up 11 percent, and there was also a 27 percent increase in gaming machine units shipped. Gaming service revenue, however, fell in the year.

International revenue also fell in the year across both lottery and gaming service revenue, which fell 10 percent and 38 percent respectively. Gaming product sales revenue was however stable in the year, it said.

Looking ahead, IGT said it expects 2019 adjusted EBITDA to be between $1.7 to $1.76 billion, a slight increase from the previous year.

“We’ve established solid foundations to build on – securing large, long-term Lottery contracts in key markets and executing a full refresh of our gaming machine cabinet and content portfolio. These efforts will translate into improved free cash flow beginning in 2019.”

It also forecasts capital expenditures to reach $450 – 550 million, a potential slight decrease from 2018.