Developer, manufacturer, and distributor of gambling software and technology solutions IGT today reported its financial results for the three and nine months ended September 30, 2016. The company experienced another strong quarter as it could be seen from the numbers posted.
IGT attributed its latest results to strong lottery performance across the globe, increased worldwide installed base, and improved gaming machine sales.
Group revenue for this year’s third quarter increased 5% year-on-year to reach $1.3 billion. The company’s core North American and Italian lottery operations were said to have contributed the most to the revenue growth. A greater demand for gaming machine units in North America and internationally was also pointed in the company’s quarterly report as an important factor to have boosted its results.
Operating income totaled $164 million during the period in review, up 26% from the same quarter of 2015. Adjusted operating income rose 9% to a total of $286 million. Adjusted EBITDA increased for a fourth consecutive quarter to reach $430 million by the end of the reviewed period.
Generally speaking, IGT’s operations are divided into four divisions – North America Gaming & Interactive, North America Lottery, International, and Italy.
North America Gaming & Interactive’s quarterly revenue dropped to $317 million from the amount of $341 million reported for the same three months of 2015. Operating income was also down from $85 million in 2015 to $66 million in the third quarter of the current year. The decrease was attributed to the revenue fall and costs for the revitalization of the installed base as well as for research and development.
IGT’s North America Lottery division performed much better. Revenue from the segment increased 22% year-on-year to $307 million. Operating income totaled $85 million during the quarter in review, up 70% from the prior-year period. The significant rise was attributed to solid same-store revenue growth and contributions from IGT’s New Jersey Lottery product.
Revenue from International operations went up slightly to reach $215 million. Operating income totaled $39 million, up from $37 million reported for the third quarter of 2015.
In Italy, revenue increased 7% to $426 million. Operating income generated by IGT’s Italian business totaled $147 million, up 12% year-on-year. The growth was mainly attributed to strong lottery and sports betting performance.
Group revenue for the nine months to September 30, 2016 amounted to $3.8 billion, up from $3.3 billion reported for the prior-year period. Operating income totaled $552.5 million, reflecting an increase from $408.4 million. IGT posted net income of $14.9 million during the reviewed nine months, up from net loss of $139 million generated during the same period of the previous year.
Bearing in mind its latest results, IGT said that it expects full-year adjusted EBITDA of between $1.7 billion and $1.9 billion.
