IGT’s lottery operations ‘benefiting from innovation’

IGT’s lottery operations ‘benefiting from innovation’

Tuesday, August 1, 2017 Posted by James Walker

Amid a second quarter hampered by $220 million of net foreign exchange losses, IGT’s North American lottery division has emerged as a highlight of the gaming group’s global operations.

In the three months to June 30, the slots-to-systems giant said revenues for its core North American lottery segment totalled, $293 million, up 2.4% on the $286 million posted in the prior-year period.

The growth, according to IGT, reflects “solid same-store revenue growth, as well as an incentive contribution from the New Jersey Lottery”.

Operating income for North America Lottery rose 29% to $79 million reflecting the contribution from the New Jersey incentive and higher same-store revenues, partly offset by lower product sales. 

Across its operations in the second quarter, IGT reported a net loss of $290 million, due primarily to $200 million of net foreign exchange losses. Revenues were down 5%, with the group attributing the downturn to “new Lotto concession dynamics” and the recent sale of Double Down Interactive.

“Our second quarter results reflect strong key performance indicators for both our global lottery and gaming businesses,” said Marco Sala, CEO of IGT. “Lottery growth is benefiting from innovation and effective sales and product marketing initiatives.

“Overall, we are pleased with the results of the first half, and we expect a more robust product offer to support stronger sales and profit levels in the second half of the year.”

Totally Gaming says: While IGT’s second-quarter results were dampened by large foreign exchange losses, the group said it is making good progress on many levels, including debt reduction. Looking ahead, the company is maintaining its outlook for adjusted EBITDA and net debt for the year, and has “modestly reduced” capital expenditures to account for certain timing shifts.

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