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International Game Technology (IGT) H1 Service Revenue Decreases
August 4, 2019 Aleksandra Zolotic
One of the most productive brands in the industry, International Game Technology (IGT), went public with information regarding their H1 revenue. As far as the numbers say, the six-month period to 30 June saw a drop in service revenue.
Total revenue for the first half fell 1.3% to $2.38bn (£1.96bn/€2.14bn), as a result of service revenue for the period dropping 4.0% to $1.97bn. Despite a noteworthy growth in product sales by 14.9%, to $408.1m, a year-on-year fall was unavoidable, due to Q1 poor figures.
Operating and Non-Operating Expenses
As for the operating expenses for the first six months of the year…
…they fell to $1.98bn. There were reductions in costs in several departments, such as sales (to $1.19bn) as well as in research and development (to $131.5m). However, due to the lower revenue, IGT’s operating income for that period was down 1.0% to $401.9m.
Non-operating expenses went up to $166.4…
…with a minor fall in interest expenses to $206.9m. There was also an offset by a lower foreign exchange gain for the period, of $17.5m. Upon setting $116.0m aside for income tax, net profit for the H1 dropped 8.6% at $119.5m. After stripping out the income attributable to the company’s non-controlling interests of $74.4m the overall profit for H1 was down 22.7% at $45.1m.
Hopes for the Future
Despite the sharp profit fall, the EBITDA for the second quarter was the highest one in three years. IGT chief executive, Marco Sala, commented on the Q2 as follows:
“We had a strong second quarter, with top-line growth driven by a sharp increase in gaming product sales and impressive gains in global lottery same-store revenues. Profits were up nicely in our North America Gaming and Italy segments. I am pleased with the broad-based improvement in key performance indicators for our main businesses.”
However, Q1 was not as successful as the second quarter, as the company reported a 5% year-on-year decline in group revenue. This is probably the result of lower revenue coming from gaming operations.
Successful Partnerships
The multinational company is already in strategically important deals with brands…
… from all over the globe. March brought an extended collaboration with Kansas Lottery. The two corporations, which are already partnered up for over a decade, penned the 3-year deal which will go in full effect on December 15, 2019, and will run through December 14, 2022.
In February, IGT signed an agreement with DC Lottery. This document made it possible for the content developer to continue the distribution of instant win games and related services until December 2019.
Source:
“IGT hit by service revenue decline in H1”, igamingbusiness.com, August 2, 2019.
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That’s sad. I hope the situation will change, after all, they are a company with plenty of experience, they should find a way to improve it.