IGT revenues drop 10% for first quarter 2017
International Game Technology (IGT) has revealed its sales dropped 10% to $1.15bn (£893m/€1.02bn) for the first quarter of 2017, from $1.28bn for the same period of 2016.
The company’s adjusted EBITDA of $371m for the first quarter of 2017 was 19% down year-on-year, while adjusted operating income was $238m, a 21% drop when compared to the first quarter of 2016.
The company attributed the results to high jackpot levels in 2016, new Italian lottery concessions and lower gaming product sales.
Marco Sala, chief executive of IGT, said: “The first quarter of 2017 has been a dynamic period for us. Our revenue and profit are consistent with the pattern of the year that we described in March.
"Year to date, we’ve strengthened our leading positions in global lotteries and begun the rollout of a new generation of gaming machines. We are monetising non-core assets that will allow us to significantly reduce debt, and we are adopting a new business model for our future participation in the social casino space.”
Alberto Fornaro, chief financial officer of IGT, said: “As we noted in March, a unique combination of elements affected first quarter revenue and profit comparisons, including record jackpot activity in 2016.
“Disciplined asset and operational management are a top priority for the company, and this is evident in the strong first quarter cash flow. We are updating our outlook to incorporate the Double Down transaction and the impact of increased taxation on gaming machines in Italy.”
In April IGT agreed a deal to sell its Double Down Interactive LLC social casino subsidiary to an affiliate of DoubleU Games for $825m.