IGT CEO hails ‘solid’ first quarter after key finances rise
Marco Sala, chief executive of International Game Technology (IGT), has said the company was able to achieve growth across all operating segments during the three months to March 31, with key financials at the firm up on a pro forma, year-on-year basis.
Pro forma revenue in the first quarter amounted to $1.3 billion (€1.2 billion), up 4% on the $1.2 billion achieved in the corresponding period last year.
Adjusted earnings before interest, tax, depreciation and amortisation were up by 12% year-on-year to $460 million, while adjusted operating income rose 35% to $310 million.
IGT also reported a 22% hike in operating income, which totalled $188 million in the opening three months of the year.
The pro forma results represent the combined performance of IGT and GTECH, which merged in April last year.
“We begin 2016 with a solid first quarter, evidenced by good revenue growth with all operating segments contributing to an improvement in profitability,” Sala said.
“Continuing growth across all regions, especially North America and Italy, propelled our lottery revenues.
“Gaming revenues were resilient despite challenging market conditions in North America, our largest gaming market.
“We remain focused on reenergising gaming operations and strengthening our global leadership in lotteries.”
Alberto Fornaro, chief financial officer at IGT, added: “Revenue growth, disciplined cost management, and synergy savings all contributed to sharp profit expansion.
“Even after large interest payments during the period, we generated significant free cash flow, enabling us to reduce debt in constant currency and further improve our leverage profile.”
Related article: IGT claims ‘year of transformation’ despite pro forma losses