IGT Q2 revenue stagnates after DoubleDown sale
IGT's revenue almost flat-lined for the second quarter of 2018, due to the sale of its DoubleDown social casino subsidiary and jackpot expenses.
The total revenue of $1.2bn was a 1% year-on-year decrease for the supplier.
According to IGT revenue was negatively impacted by $33m due to jackpot expenses and the sale of DoubleDown to an affiliate of DoubleU Games.
Operating income grew 9% to $209m, while EBITDA increased by 4% to $442m and reported net debt went up 8% to $7.5m.
Marco Sala, CEO of IGT, said: “The strong second quarter results reflect continued global lottery expansion that is accentuated by disciplined expense management.”
The North American lottery segment saw a 5% revenue increase to $270m.
Sala added: “The North America Lottery and Italy segments each exceeded our expectations in the period. The North America Gaming installed base grew sequentially and we have a compelling roster of new, for-sale video reel games coming to market in the second half. The strong start to the year gives us confidence we can achieve our 2018 strategic and financial goals.”
Alberto Fornaro, CFO of IGT, said: “With better-than-expected adjusted EBITDA growth of 10% in the first half, we are raising our full-year outlook for the underlying business. As a result, we are able to absorb the negative impact of foreign currency translation and maintain the adjusted EBITDA range of $1,700-$1,780m for 2018.”
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