Global slot and video gaming machines designer and manufacturer International Game Technology has released its financial results for the third quarter of 2016 showing a 5% increase year-on-year in total revenues to $1.26 billion thanks primarily to its strong performance in the North American and Italian lottery segments.
The London-based multi-national reported a 26% rise year-on-year in operating income for the three months to the end of September to $164 million while its third-quarter adjusted earnings before interest, tax, depreciation and amortization swelled by 4% to reach $430 million, which represented a fourth consecutive quarter of year-on-year growth.
“Strong lottery performance across the world, a larger global installed base and increased sales of gaming machines drove another quarter of solid revenue and profit expansion,” said Marco Sala, Chief Executive Officer for International Game Technology. “[Our] leadership positions in lottery and gaming machines were evident at the recent gaming and lottery trade shows. The engaging player experiences and technology solutions International Game Technology creates are the cornerstones of our growth strategy and we are encouraged by customer enthusiasm for our innovative new products.”
International Game Technology declared that its adjusted operating income for the third quarter has improved by 9% year-on-year to $286 million as higher lottery profits “were partially offset by the timing of bad debt expense, investment in the installed base, increased global product marketing costs and research and development spending”.
The company explained that interest quarterly expenses came in at $118 million versus $122 million for the comparable three-month period in 2015 while its net loss stood at $2 million, which reflected the impact of $21 million in primarily non-cash foreign exchange losses, although this figure grew positively by 6% to a $90 million surplus on an adjusted basis.
“We achieved broad-based growth across regions in the third quarter and our financial condition is strong,” said Alberto Fornaro, Chief Financial Officer for International Game Technology. “Higher profitability enabled us to maintain our leverage ratio despite the significant interest and tax payments of the quarter. Based on our performance to date, we remain comfortable with our adjusted earnings before interest, tax, depreciation and amortization outlook for the full year.”
International Game Technology stated that it held cash and equivalents of $350 million at the end of September, which compared with the $627 million recorded at the conclusion of 2015, while its consolidated shareholders’ equity totaled $3.42 billion and net debt was down by 3% to $7.93 billion.
“Global lottery same-store revenues, excluding Italy, increased by 6% during the third quarter while Italy lottery wagers increased by 7%,” read a statement from International Game Technology, which also has offices in Rhode Island, Nevada and Italy. “Gaming service revenues were below the prior year, primarily on lower DoubleDown revenues. Product sales increased in the quarter on higher gaming machine unit demand in the North America and international segments as well as on higher international systems sales. The company shipped 8,980 gaming machines worldwide during the third quarter.”