International Game Technology (IGT) has published its financial results for the third quarter ended September 30, 2018. In a brief statement to investors, CEO Marco Sala pointed to the firm’s long-term contracts as playing an important role in what he saw as a solid performance in Q3.
In the three months through to September 30, operating income amounted to $200m, up from a loss of $556m in the same period last year. Adjusted EBITDA climbed three per cent year-on-year to $443m, but revenue was down five per cent from $1.22bn to $1.16bn.
Looking specifically at the firm’s North American gaming and interactive business, revenue stood at $231m compared to $262m in the prior-year quarter representing a decline of $14m after adjusting for $17m jackpot expense re-class. Gaming services revenue was $152m compared to $171m in the prior year.
For North American lottery IGT achieved revenue of $279m compared to $307m in prior-year period, with lottery service revenue down five per cent to $225m.
Sala noted: “Solid performance and important, long-term contracts drove very good third quarter and year-to-date results. Global Lottery same-store revenues for instants and draw games rose mid-single digits. The installed base of gaming machines was up, and unit shipments of gaming machines increased 10 per cent. And, we enjoyed particularly strong sales and profit growth in Italy, confirming the vitality of that important market. We are firmly on track to achieve our 2018 financial and operational goals.”
Alberto Fornaro, CFO of IGT, confirmed: “We’ve delivered adjusted EBITDA growth of four per cent and seven per cent for the third quarter and year-to-date periods at constant currency and scope. As a result, we are narrowing our adjusted EBITDA outlook for 2018 to $1,740 – $1,780m, the top half of the prior range.”