IGT Post Q1 2019 Update, Reveals a 2% Decline in Revenue
International Game Technology (IGT) has posted the latest financial update for the first quarter of this year, revealing a 5% drop when compared to the corresponding period of 2018.
IGT generated a total of $1.14 billion in revenue during the year’s first quarter. $991 million, or 86.9% of the total sum was generated by service revenue, while the rest – $153.9 million came from product sales.
Italy Leading the Way
IGT’s Italy business recorded the biggest share of revenue – $437 million – representing a drop of 10%. This includes $204 million in lottery service revenue, while the total lotto wager improved by 5%.
The sales of Scratch & Win recorded a slight drop, while the company’s Multiplier games had an excellent period, with their performance being described by IGT as “exceptional”.
Gaming service revenue in Italy dropped by 20% to $153 million, with the number of amusement with prizes (AWPs) units falling by 21%, along with a 2% decrease in stakes.
North American lottery remained unchanged, generating $296 million in revenue. Lottery service stayed flat at $241 million, lottery product sales dropped by 13%. The good news is the rise in gaming revenue – which went up by 8% to $41 million.
The North American Gaming & Interactive division generated 2% less revenue in Q1 2019, ending the period with $239 million. The international segment also saw its revenue drop by 7% to $172 million.
The total number of installed units was 60,400 on March 31, 2019, which is 3% less on a yearly basis. During the quarter, a total of 7,001 new machines were delivered to customers around the globe.
Commenting on these figures, Marco Sala, Chief Executive Officer at IGT said the company’s first-quarter results confirmed the consistent growth profile of the global lottery business and the progress they had made in sales of gaming machines, where global unit shipments had increased by 20%. He added the results of IGT’s Italy operations were also noteworthy, with further growth in lottery and resilient machine gaming performance.
Sala stated that the company’s remained on improving its revenue and profits from gaming activities, while at the same time innovating with new lottery games and technologies, and pursuing emerging growth opportunities.
IGT, which recently launched PlayBingo solution in Norway, has also announced that total costs for the three-month period ending on March 31 dropped by 4% to $966.8 million. The company cited reduced costs of service and product sales-related expenses as the main factors behind such a performance.
Selling, general and administrative expenses went down by 6% to $205.1 million, while costs of research and development decreased to $66.1 million.
At the end of the first quarter, IGT was left with an operating profit of $178.2 million, 10% less than in the same period of the last year. However, thanks to foreign exchange of $58.6 million, the company’s non-operational expenses significantly dropped from $201 million to $45 million.
All in all, the renowned gambling company posted a net profit of $40.3 million for the first quarter of 2019. This is quite an improvement for the corresponding period of 2018 when IGT reported a loss of $103.1 million.
- iGaming Business: https://www.igamingbusiness.com/news/igt-reports-2-decline-q1-revenue