Provider of technology and related solutions for the international gaming industry IGT posted its financial report for the three months ended June 30, 2016. Revenue for the period amounted to $1.3 billion, up 1% year-on-year.
The company said that the increase was mainly due to strong lottery performance, particularly in North America and Italy. Product sales decreased during the period in review when compared to a strong prior-year quarter with significant lottery sales in South Africa and video lottery terminal sales in Canada.
Operating income was up 48% during the second quarter of 2016 to reach $171 million. The growth was driven by an increase in revenue, synergy savings, and lower transaction expenses. Adjusted operating income totaled $290 million, up 2% year-on-year.
During the period in review, adjusted EBITDA grew 4% to $443 million. The increase was mainly driven by rise in service revenue.
Net income attributable to IGT itself totaled $73 million during the three months ended June 30. Net income increased 14% to $87 million on an adjusted basis.
Revenue from the company’s North America Gaming & Interactive operations totaled $350 million, down from the amount of $353 million posted for the second quarter of the previous year.
IGT’s North America Lottery division generated a total of $286 million in revenue during the reviewed period, reflecting a 6% increase from the amount of $270 million reported for the same three months of 2015.
International operations contributed a total of $207 million to the overall figure, down from the amount of $247 million generated during the second quarter of 2015.
In Italy, revenue totaled $443 million, up 6% year-on-year. The excellent performance of IGT’s Italian division was attributed to a considerable increase in Lotto wagers, which were up 19% to reach €2.1 billion.
Commenting on the company’s second-quarter performance, IGT CEO Marco Sala said that considerable growth in international lottery operations, particularly in Italy and North America, and continued resilience of their global business were the two main highlights for the reported period. Mr. Sala also noted that they have been progressing in implementing their strategy to produce innovative technology and content and to leverage it across different gaming platforms in a number of jurisdictions.
Earlier this year, it became clear that an IGT-led consortium of companies was awarded Italy’s Lotto concession. The involved parties will have to pay a total of €770 million for the purpose. IGT said in its latest statement that the largest portion of that sum – €350 million, was paid during the second quarter of the year. A second installment of €250 million is to be made by the end of the year.
