IGT Post the Best Quarter Figures in the Last Three Years
According to available information, the company recorded a 3% increase in revenue when compared to the corresponding period of the last year. Performance in North America and Italy had a significant impact on both revenue and earnings before interest, taxes, depreciation, and amortization (EBITDA), while gaming product sales and worldwide Lottery revenue have been cited as the main driving force behind the latest improvement.
Executives Satisfied with the Results
The company’s offering in North America demonstrated superb performance during the period ending on June 30, while a multi-year lease and distribution agreement was crucial for its figures on the operational revenue front.
Commenting on the latest results, Marco Sala. Chief Executive Officer at IGT said they had had a strong second quarter, with top-line growth driven by a sharp increase in gaming product sales and impressive gains in global lottery same-store revenues. He pointed out that profits had been up nicely in their North America Gaming and Italy segments, and added the was pleased with the broad-based improvement in key performance indicators for their main businesses.
Alberto Fornaro, the company’s Chief Financial Officer stated the tech giant’s EBITDA in the most recent quarter had been the highest they had achieved in three years, bringing substantial cash flow for the first half. Fornaro further said the recent capital markets activity strengthened their financial structure, enhanced flexibility, and positioned the company well for the years ahead.
When it comes to headline figures for the quarter, both operating income and adjusted operating income went up by 6%, reaching $224 million and $274 million respectively. Adjusted EBITDA improved by 5% to $454 million, while operating cash flow so far in 2019 reached $592 million, with a free cash flow of $361 million.
A Strong Quarter for the Gaming Giant
Gaming service revenue at the company’s North American gaming and interactive business dropped from $169 million in Q2 2018 to $165 million, which is a year-on-year decline of 2.4%. Revenue from product sales improved by 22% to $104 million.
Lottery service revenue remained flat at $238 million, while overall same-store revenue went up by 7.2%, with growth in instant ticket and draw games and increased jackpot activity cited as the main factors behind this improvement. Operating income fell by 3% at constant currency on higher depreciation to $78 million.
IGT signed an important agreement with the Kansas Lottery earlier this year. Under the provisions of this deal, IGT will continue to provide its INTELLIGEN system to the state lottery for another 3 years, all the way through to 2022. The company also launched PlayBingo solution in Norway a couple of months ago.
Unlike the first quarter of this year, which IGT ended with a drop in revenue, the latest three-month period was a strong one by any standard.