International Game Technology PLC (IGT) has announced that total revenue for the quarter was close to $1.05 billion, a 1 percent decrease from last year.
Global Lottery revenue fell by 2 percent to $613 million, while Gaming & Digital revenue rose by 1 percent to $436 million.
The decline in Global Lottery revenue is attributed to a multi-year software license sale from the previous year. On the other hand, Gaming & Digital’s increase was driven by growth in the installed base, although this was partly offset by fewer terminal unit shipments.
Total operating income for the quarter fell by 8 percent year-on-year to $230 million.
Gaming & Digital‘s operating income rose by 16 percent to $103 million, while Global Lottery’s income decreased by 8 percent to $212 million. Corporate support expenses dropped significantly by 67 percent, resulting in an operating loss of $51 million. Meanwhile, other expenses increased by 8 percent, leading to a loss of $35 million.
Total adjusted EBITDA for the period was $420 million, reflecting a 5 percent year-on-year decrease. Net debt also fell by 5 percent, totaling $5.11 billion.
These results follow last week’s announcement of Apollo Funds’ acquisition of IGT’s Gaming and Digital business, along with Everi. IGT had chosen to separate its gaming and digital division and merge it with Everi as part of the deal.
IGT CEO Vince Sadusky said, “IGT delivered strong first-half results, including record operating income and adjusted EBITDA net of separation and divestiture costs.”
“Consistent investments in technology, game content, and other innovative solutions provide us with a solid foundation to build from as we execute on our growth objectives. The recently announced sale of our Gaming & Digital business for $4.05 billion in cash is an important step in unlocking the intrinsic value of IGT’s best-in-class businesses.”
“We generated over $460 million in cash from operations in the first half of the year, and our balance sheet is as strong as ever,” said Max Chiara, CFO of IGT. “Our ample liquidity and manageable near-term debt maturities provide us with significant flexibility in light of upcoming investments to extend and secure our long-term lottery contract portfolio for the coming years.”
