IGT reports strong Q4 earnings

Business News

IGT said total revenue for the fourth quarter 2017 was US$1.35 billion, up 1.9 percent in year-on-year terms. Such growth was supported by stronger gaming sales in the international segment and higher lottery software sales than an year earlier, said the firm.

The company saw its operating income for the three months to December 31 increase by 40.5 percent year-on-year, to US$193.9 million. Adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) was US$452 million compared to US$422 million in the fourth quarter of 2016, “on strong International performance, Italy sports betting results, and lower operating expenses,” said the company.

Net income for the period was US$79.7 million, down when compared to US$233.3 million in the fourth quarter of 2016. IGT said however that the benefit from income taxes rose to US$83 million from US$5 million in the fourth quarter of 2016, mainly because of “non-cash impacts of recent U.S. tax reform”.

IGT’s board of directors declared a quarterly cash dividend of US$0.20 per share. The dividend is payable on April 5, to shareholders of record as of March 22, it said.

“We had a strong finish to 2017, amplifying the progress we made throughout the year,” said Marco Sala, chief executive of IGT, in a prepared statement.

“We delivered outstanding results in our lottery business and improved our key performance indicators in the gaming business. These achievements were enhanced by disciplined expense management,” he added.

Total revenue in the gaming segment stood at US$664 million for the three months ended December 31, down 9.0 percent from a year earlier. The firm said gaming services revenue declined 8.1 percent year-on-year, to US$452 million. Revenue from gaming product sales fell 10.7 percent year-on-year, to US$212 million.

IGT’s revenue from the international segment – that excludes sales in North America and Italy – rose 27 percent from the prior-year quarter, to US$280 million, “reflecting strong growth in both lottery and gaming,” according to Thursday’s release. The firm’s gaming revenue in the segment increased 3.6 percent year-on-year to US$149 million, including US$55 million from gaming services and US$94 million from product sales.