IGT shows resilience to hit Q4 targets

IGT shows resilience to hit Q4 targets

Wednesday, March 14, 2018 Posted by Luke Massey
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Modest Q4 increases masked full-year losses for the technology provider

International Game Technology PLC (IGT) has reported financial results for its fourth quarter and full year ended 31 December 2017. The Q4 performance shows a modest three per cent year-on-year improvement to $1,346m. However, full-year results fell from $5,154m in 2016 to $4,939m.

According to the update, adjusted operating income stood at $268m compared to the $281m generated in the prior year period. Adjusted EBITDA was ahead at $452m compared to $422m in Q4 2016 which was driven mainly, says the company, by strong international performance, Italy sports betting results, and lower operating expenses.

Summarising the performance, IGT CEO Marco Sala stated: "We had a strong finish to 2017, amplifying the progress we made throughout the year. We delivered outstanding results in our lottery business and improved our key performance indicators in the gaming business.

“These achievements were enhanced by disciplined expense management. Bringing innovative content and technology to market remains the cornerstone of our strategy. Last year, we executed well along this path and established a solid foundation for growth in 2018 and beyond."

"We met all of our financial objectives for the year, including the top end of our EBITDA expectations,” said Alberto Fornaro, CFO of IGT. “Net debt was slightly better than our outlook, despite the early Scratch & Win renewal in the fourth quarter. The results for the fourth quarter and full year highlight the diversity and resilience of the IGT franchise."

On the outlook, IGT stated that it expects to achieve adjusted EBITDA of $1,700-$1,780m in 2018. Capital expenditures are expected to be $575-$625m. The company's outlook assumes a 2018 average EUR/USD exchange rate of 1.22.

Totally Gaming says: Reading between the lines, executives at IGT may well be feeling some relief as much as satisfaction that the firm’s Q4 performance matched expected targets against a backdrop of full-year losses. While the gains have been modest, they give a clear indication of the resilience and staying power of the IGT business.

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