International Game Technology (IGT) has revealed that despite having posted a year-on-year jump in revenue during the three months through to June 30, it suffered a heavy drop in operating income.
In an earnings announcement, the first since IGT merged with GTECH in April of this year, the company recorded revenue of just under $1.3 billion (€1.2 billion), which represents an increase of 36% on the $945 million posted in the second quarter of last year.
Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) was up 32% on a year-on-year basis to $427 million, while adjusted operating income also increased by 39% to $275 million.
However, IGT did note that operating income for the second quarter came in at $116 million, which represents a year-on-year drop of 32% when compared to the $171 million collected in the corresponding quarter last year.
Adjusted net income per diluted share was down 17% to $0.35, while net debt increased from $2.6 billion to $8.4 billion – partly due to the merger with GTECH during the quarter.
IGT also posted pro forma results for the period, in which its performance was not as positive.
Pro forma results show revenue down 9%, with adjusted EBITDA and operating income falling 12% and 59% respectively.
Reflecting on the quarterly performance, IGT chief executive Marco Sala said the results represent “stable growth” for the company and its focus will continue to be on integration.
“As anticipated, our second quarter results reflect the stable growth characteristics of our global lottery operations and a meaningful sequential improvement in our gaming operations,” Sala said.
“We have accomplished a lot in the past four months, notably organising ourselves under a single leadership team and consolidating our manufacturing footprint.
“There is much more ahead of us; in this year of transformation, we will continue to focus on integration to provide a solid foundation for future growth and value creation.”
source : www.igamingbusiness.com