BUSINESS

IGT Q3 revenue up $1.27 billion

TAGs: IGT, international game technology, Lottery, north america

Strong lottery growth and higher gaming product sales lift International Game Technology Plc’s (IGT) total revenue to US$1.27 billion in the third quarter.

IGT Q3 revenue up $1.27 billionIGT also credited the “large systems sale” in Asia for the five percent increase of its total revenue for July to September 2016 period.

Excluding North America and Italy sales, IGT’s international gaming product sales leaped 12 percent year-on-year on a constant currency basis.

Figures provided by the company also showed that 3,742 gaming machines were shipped at higher average unit prices during the third quarter of 2016 compared to 3,296 units in the prior-year period.

“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,” IGT’s chief executive, Marco Sala said, according to GGRAsia.

The company’s international gaming service revenue, however, slid from US$50 million in the third quarter of 2015 to US$43 million “mainly due to the exit of certain interactive operations”.

IGT also notched a US$2 million net loss for the three months ended September 30. The company said it reflected “the impact of US$21 million in primarily non-cash foreign exchange losses”.

Net income attributable to IGT rise 6 percent year-on-year to US$90 million on adjusted basis while adjusted earnings before interest, taxation, depreciation and amortization were climbed 4 percent to US$430 million.

IGT’s net debt was US$7.94 billion as of September 30.

Meanwhile, IGT confirmed that it is in an “advanced conversation” with operators in Asia regarding the possible launch of a new mobile application that would allow casino patrons to play slots and back-bet on tables in real time via their smartphones.

“We believe IGT is in the early stages of a multi-year positive progression and should be considered a core holding for longer-term investors, with periods of weakness viewed as buying opportunities.” David Katz and Brian Davis, analysts at Telsey Advisory Group LLC, said in a note.

Comments

views and opinions expressed are those of the author and do not necessarily reflect those of CalvinAyre.com