IGT Sees Decline In Revenue After DoubleDown Selling

IGT Sees Decline In Revenue After DoubleDown Selling

Global leaders in the commercial gaming industry, IGT, has shared the financial results for the second quarter of 2018. The charts are showing a minor stagnation which is caused by the company’s decision to sell its DoubleDown social casino subsidiary in the previous period. Likewise, the group has suffered additional jackpot expenses, causing a 1% decrease in the total year-on-year revenue of $1.2 billion.

The exact sale expenses to an affiliate of DoubleU Games are estimated at $33 million. However, the operating income has increased by 9% reaching almost $209m whilst EBITDA jumped by 4% to exactly $442 million USD. At the same time, the net debt went to a distressing 8% or $7.5m.

Global Lottery Expansion

According to the CEO of IGT, Marco Sala, the company’s stable results in the second quarter are also caused by a continuous expansion in the lottery vertical. Sala added that both North American Lottery and Italy exceeded all expectations and confirmed the roll out of new video reel games in the following period. Thanks to a strong start in 2018, the group is confident in achieving its strategic and financial objectives in the second half.

Stable Growth Despite Currency Translation

International Game Technology has a stable 10% growth in the first half, thanks to the adjusted EBITDA, says CFO, Alberto Fornaro. These results have helped the company to absorb the negative impacts of the foreign currency conversion and maintain the gross income between $1,700 and $1,780 million for 2018.

The world’s leading end-to-end gaming giant has also shipped 4,550 gaming machine units in Q2 compared to 5,293 units in the prior-year period. Recently opened, Ocean Resort and Hard Rock Atlantic City, received a shipment of 1,403 or 1,803 new expansion units. IGT has also recently launched sports betting in Rhode Island and it’s preparing a new payload to Springfield, due to the anticipated opening of MGM.

Source:

“International Game Technology PLC Reports Second Quarter 2018 Results”, Jake Patel, igt.com, July 31, 2018.

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