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Amidst Shrinking Losses, IGT Registers A 4% Increase In The EBITDA

Amidst Shrinking Losses, IGT Registers A 4% Increase In The EBITDA
Amidst Shrinking Losses, IGT Registers A 4% Increase In The EBITDA

Despite a cut in the total revenue generated for the year 2018, the International Game Technology PLC, (IGT), the UK-based gaming and lottery service provider registered a shrinking net loss of US$21.4 million for 2018 while the net loss for the year 2017 was approximately US$1.07-billion. The IGT reported a 2 percent decline in their revenue for 2018 as it fell from US$4.83 billion in 2017 to US$4.94 billion. A statement issued by the IGT on Thursday also mentioned that the net loss figures for 2018 were inclusive of the US$120 million of non-cash impairment charges.

Talking about the current report, the IGT CEO, Marco Sala looked positive and said that the company’s position is very much in tune with the projections made in October last year after they released the financial data for the third quarter of 2018.

In their release on Thursday Sala said: “The year was characterized by strong global lottery performance, resilience in Italy and progress in North America gaming.” Adding to his statement sala explained, “We’ve established solid foundations to build on – securing large, long-term lottery contracts in key markets and executing a full refresh of our gaming machine cabinet and content portfolio. These efforts will translate into improved free cash flow beginning in 2019.”

After the third quarter reports released in October, the IGT’s net debt was estimated at US$7.57 billion which increased to US$7.76 billion by the end of the year.
The IGT’S EBITDA ( earnings before interest, taxation, depreciation, and amortization) increased from US$1.68 billion to approximately US$1.74 billion between 2017 and 2018.
IGT’s chief financial officer Alberto Fomaro said: “We achieved 4 percent adjusted EBITDA growth on stable revenue at constant currency and scope in 2018. Our outlook for 2019 adjusted EBITDA of US$1.70 billion to US$1.76 billion assumes underlying growth for our core lottery and gaming businesses.”

In their statement, IGT mentioned that the company is witnessing “underlying improvement” with its operations in the US and have grown stronger in their prominent market, Italy.
Apart from these two improvements, IGT’s revenue from other markets has plummeted 7 percent from the previous year from US$889 million in 2017 to US$820 million in 2018.

Also, coming to the number of IGT ’s slot machines installed in Casinos worldwide witnessed a decline as it dropped by 17 percent from 12,800 devices in 2017 to 10636 in 2018. However, in their official statement, the company said that their “underlying international growth outlook (was) unchanged.”
According to the data presented the IGT had shipped 13,700 slot machines globally in 2018 while for the same period they had shipped 13,974 units in 2017. In the report, there has been no categorical statistics explicitly about the markets in Asia.

IGT’s revenue for the fourth quarter of 2018 was estimated at US$1.27 billion which is 6 percent less on a year-on-year basis. EBITDA for the fourth quarter of 2018 was US$416 million against US$452 million for the same period in 2017. IGT also registered a net loss of US$102 million for the fourth quarter in 2018 while for the same period they had recorded a profit of US$79.7 million the previous year.
Reacting to the IGT’s results announcement, Deutsche Bank Securities Inc published a note which said that the IGT had not achieved its fourth quarter 2018 guidance as presented in October last year citing accounted unfavorable foreign exchange transactions as the reason behind. Deutsche Bank’s analysts said that they “don’t truly believe the cadence of the business is materially different.”

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Kevin Kaostricks

Kevin Kaostricks

Kevin takes care of round the clock updates on Casino Buzz. He is based out of Rochester. He can be reached out at kk@casino.buzz

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