International Game Technology (IGT) saw mixed results in the three months to 3Q19, with group-wide revenue showing slight 3% growth at constant currency to US$1.15 billion but operating income down 19% to US$154 million and Adjusted EBITDA down 5% to US$407 million.
In its results announcement, IGT attributed the decline in Adjusted EBITDA to higher R&D and Selling, General and Administrative expenses, plus a “differential profit flow-through on revenue mix” due to a high-margin product sale in the previous year’s quarter.
Nevertheless, the company reported sales growth across most of its key regions, with total revenue in North America up 12% to US$257 million and operating income rising 34% to US$62 million. The increase came on the back of more product sales in the gaming segment and 38.4% increase in replacement unit shipments, slightly offset by fewer new unit shipments and reduced provision of gaming services.
In the international market, total revenue grew 3% at constant currency to US$213 million although operating revenue fell 40% to US$30 million. Revenue in the gaming segment increased 27% to US$118 million on higher product sales while Lottery revenue fell 19% to US$79 million.
The number of installed base units internationally fell 10.5% to 14,332.
Both IGT’s North America Lottery and Italy regions saw relatively stable revenue for the period compared with 3Q18.
“Our core businesses achieved significant momentum in the third quarter and year-to-date periods,” said Marco Sala, CEO of IGT. “Key performance indicators were solid in the quarter – gaming machine unit shipments increased 44%, while same-store revenue for draw games and instants rose 4%.
“Our leading positions are rooted in our focus on player-driven performance, which was on display at recent lottery and gaming trade shows and should sustain our momentum going forward.”
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