International Game Technology (IGT) has published its financial results for the first quarter ended March 31, 2019. Revenue of $1.14bn, said the firm, included a significant increase in global gaming unit shipments and continued growth in global lottery same-store revenue. The company also revealed operating income of $178m; adjusted EBITDA of $417m, described as “stable at constant currency on strong Italy and North America Lottery results”. Adjusted operating income was $230m, down 4% at constant currency.
Turning to its North American business, IGT reported revenue of $240m, stable with the prior year at constant currency. Gaming service revenue came in at $155m, again cited as stable compared to the prior year. Terminal service revenue reflected a decline in installed base and lower average yields due to product mix, added the firm.
IGT also noted an increase in other service revenue from a large, multi-year poker contract and product sales revenue of $84m. There was also a strong 28% increase in terminal revenue resulting from 8% growth in gaming machine units shipped at higher average selling prices. Operating income of $49m was, however, down from $57m year-on-year due to higher depreciation related to upgrading its installed base and lower sales of high-margin systems.
IGT’s lottery business, meanwhile, generated $296m, stable year-on-year with service revenue of $241m and in line with the prior year. Overall same-store revenue growth was driven by instant ticket and draw games. Lottery product sales revenue came to $14m, while gaming service and operating income stood at $41m and $76m respectively.
“Our first quarter results confirm the consistent growth profile of our global lottery business and the progress we’ve made in sales of gaming machines, where global unit shipments increased 20%,” said CEO Marco Sala. “The results of our Italy operations are also noteworthy, with further growth in lottery and resilient machine gaming performance. As we look to the future, our focus remains on improving revenue and profits from gaming activities, innovating with new lottery games and technologies, and pursuing emerging growth opportunities.”
“First quarter revenue and adjusted EBITDA were stable at constant currency, thanks to important contributions from our Italy and North America Lottery segments,” said CFO Alberto Fornaro. “Operating expenses were well controlled, our financial condition is solid, and we are maintaining our financial outlook for the year.”
