International Game Technology PLC (IGT) has posted what it described as strong second quarter results, despite circa $26m of negative currency translation, with the adjusted EBITDA outlook confirmed at $1,700m – $1,780m on improved underlying business performance.
The gaming company reported net income of $161m which included $173m of net foreign exchange gain, while adjusted net income was $57m. Adjusted EBITDA of $442m reflects robust global lottery performance and disciplined operational management, said the firm.
Looking at the company’s North American Gaming & Interactive performance in isolation showed revenue down to $254m from $310 year-on-year. The decline, said IGT, was fully attributable to the sale of its DoubleDown interactive business and ASC 606 classification of jackpot expense as a contra revenue item (previously included in cost of services).
Gaming service revenue in North America was $169m compared to $208m in the prior-year period, while product sales of $85m were down 17% from the prior year. The company shipped 4,550 gaming machine units in the quarter compared to 5,293 units in Q2 2017.
The installation of new and expansion units was up, however, from 1,408 units to 1,803 units primarily due to Ocean Resort and Hard Rock Atlantic City openings, and MGM Springfield‘s anticipated opening. Operating income stood at $66m compared to $76m in Q2 2017.
“The strong second quarter results reflect continued global Lottery expansion that is accentuated by disciplined expense management,” said Marco Sala, CEO of IGT. “The North America Lottery and Italy segments each exceeded our expectations in the period. The North America Gaming installed base grew sequentially, and we have a compelling roster of new, for-sale video reel games coming to market in the second half. The strong start to the year gives us confidence we can achieve our 2018 strategic and financial goals.”
CFO Alberto Fornaro commented: “With better-than-expected adjusted EBITDA growth of 10% in the first half, we are raising our full-year outlook for the underlying business. As a result, we are able to absorb the negative impact of foreign currency translation and maintain the adjusted EBITDA range of $1,700m-$1,780m for 2018.”