Scientific Game

IGT reports 3Q17 operating loss on North American unit

Wednesday, 15 November 2017 06:02
Share
Visit us

Global gaming conglomerate IGT reported a net loss of US$804 million revenue for the three months to 30 September 2017, due primarily to a US$714 million non-cash impairment charge and US$118 million of net foreign exchange loss.

Similarly, the company saw revenue fall 6% for the quarter to US$1.22 billion, with the decline attributed to the sale of Double Down Interactive and new Lotto concession amortization. But the company said that when adjusted for the Double Down sale, consolidated revenue actually increased 2% including 5% growth in the gaming service segment.

IGT explained the US$714 million impairment charge as the result of having to write down the carrying value of the company's North America Gaming and Interactive reporting unit to fair value.

“The impairment charge reflects a delayed recovery for the North America Gaming and Interactive reporting unit,” it said. “Going forward, revenue and profit levels for the North America Gaming and Interactive reporting unit are expected to grow as new games and cabinets come to market. The impairment charge has no impact on the company's operations, cash flow, ability to service debt, compliance with financial covenants, or underlying liquidity.”

Adjusted operating income for 3Q17 was US$258 million compared to US$286 million in the prior-year period. But Adjusted EBITDA held steady at US$428 million compared to $430 million in 3Q16 with higher product sales and lower operating expenses compensating for the DoubleDown sale.

IGT said that the global installed base grew 3,275 units year-on-year, including expansion for both casino and VLT units. Global gaming product revenue increased 9% on strong system and software sales, with the company shipping 6,406 gaming machines worldwide during the third quarter “with higher average selling prices than the prior year.”

“Thanks to a favorable product sales mix and reduced operating expenses, Adjusted EBITDA improved from the prior-year period, after considering certain non-comparable items, such as the DoubleDown sale,” explained IGT Chief Financial Officer Alberto Fornaro. “Based on the year-to-date results and current exchange rates, we expect to achieve Adjusted EBITDA of $1,640-$1,680 million for the full-year period.”

IGT’s international expansion continued to show strong results in 3Q17 with revenue outside of the US up 9% to US$234 million.

Although international lottery service revenue fell 1.4% to US$70 million, gaming service revenue increased 36% to US $59 million, “reflecting the benefit of discrete, non-recurring items and significant expansion in the installed base.”

Product sales revenue rose 5% to $US87 million with operating income up 7% to US$40 million.

 

What's new

VIDEO: Week in Review

VIDEO: Week in Review Inside Asian Gaming takes a look back at the biggest stories of the past week. Friday, 25 May 2018 06:54

Macau May GGR in line for high-teen growth

Macau May GGR in line for high-teen growth Macau is on track to report a year-on-year GGR increase of between 17% and 19% in May, say analysts, after rebounding strongly from the Labor Day holiday weekend. According to JP Morgan’s DS Kim, mass market is leading the way with growth of more than 20% year-on-year while VIP GGR is tracking in... Friday, 25 May 2018 06:36

PAGCOR says officials safe after Duterte gambling comments

PAGCOR says officials safe after Duterte gambling comments Philippines gaming regulator PAGCOR says that its leaders are safe following reports this week that a number of high-ranking gaming officials were set to be fired by President Rodrigo Duterte. PAGCOR was quick to absolve itself of any link to comments made by Duterte after he asked two ranking offi... Friday, 25 May 2018 05:43

Genting Berhad sees 10% growth in 1Q18 on Malaysia, Singapore IRs

Genting Berhad sees 10% growth in 1Q18 on Malaysia, Singapore IRs Genting Berhad saw its revenue grow 10% to RM5.3 billion for the three months to 31 March 2018, boosted by its leisure and hospitality segment and in particular strong results at its flagship integrated resorts in Malaysia and Singapore. Malaysia’s Resorts World Genting (RWG) enjoyed the biggest ... Friday, 25 May 2018 04:59

Current Issue

Macau and Japan: Licensing looms large

Macau and Japan: Licensing looms large The next few years are set to be the most crucial period ever in the Asian gaming industry – one which will lay the ground rules for decades to come in the world’s largest gaming market and what’s set to become the world’s second largest. By Ben Blaschke and Andrew W Scott Macau and Japan ... Monday, 30 April 2018 12:39

Pachinko: Japan's Unlucky Loser

Pachinko: Japan's Unlucky Loser Japan’s preparations for integrated resorts are hitting pachinko harder than the actual casinos ever will. By Muhammad Cohen Japan won’t open its first integrated resort for years, if ever, but the IRs already have their first loser, the country’s unique and ubiquitous pachinko business. Pac... Monday, 30 April 2018 12:33

Responsible Gaming in Japan: Bill to be key to Japan’s Gaming Market

Responsible Gaming in Japan: Bill to be key to Japan’s Gaming Market Global Market Advisors’ Brendan D Bussman runs through the pros and cons of Japan’s problem gambling legislation. By Brendan D Bussmann As Japan continues to look at the development of integrated resorts (IR), many people engaged and following the market are focused on the IR Implementation Bi... Monday, 30 April 2018 12:28

Safety First

Safety First The International Association of Gaming Advisors (IAGA) will hold its 37th annual International Gaming Summit during G2E Asia from 14 to 16 May at Four Seasons Macao. Among the many insightful seminars and events that will comprise IAGA’s summit is a responsible gaming workshop to be held on Wedne... Monday, 30 April 2018 12:12