Global gaming supplier International Game Technology (IGT) reported a net loss of US$102 million, equal to US$0.50 per diluted share, in the final quarter of 2018, declining from net income of US$0.39 per diluted share over the same period in 2017.
The loss came on the back of a 6% decline in revenue to US$1.27 billion, with Adjusted EBITDA down 8% to US$416 million and operating income declining 79% to US$41 million.
In its earnings release overnight, IGT attributed the results to a range of factors including the exceptionally strong sports betting dynamics experienced in the prior year, high depreciation and a non-cash, non-tax-deductible impairment charge of US$119 million which reduced the carrying value of the international segment.
In fact, it was the international segment that proved the greatest challenge in 4Q18, with revenue down 18% to US$221 million and operating income falling 57% to US$28 million.
The North American Gaming and Interactive division was also down, while North American Lottery and Italy both grew slightly.
Despite a tougher quarter, IGT’s FY18 results were stronger with revenue down 2% to US$4.83 billion, Adjusted EBITDA rising 4% to US$1.74 billion and operating income moving from a loss of US$51 million in 2017 to a profit of US$647 million.
Net income per diluted share improved to a loss of US$0.10 from a loss US$5.26 in 2017.
“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,” said IGT CEO Marco Sala.
“These efforts will translate into improved free cash flow beginning in 2019.”
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