IGT revenue drops 5% in Q2

"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. In Gaming, the global installed base was up and unit sales of gaming machines were higher, as were average selling prices, all supported by strong demand for new cabinets. 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."

"We've made a lot of good progress on many levels so far this year," said Alberto Fornaro, CFO of IGT. "We are lowering our debt and we are enhancing cash generation through disciplined asset and financial management. We are maintaining our outlook for adjusted EBITDA and net debt for the year, and have modestly reduced capital expenditures to account for certain timing shifts."

Among the key aspects included in the financial report are:

• Global lottery same-store revenue, excluding Italy, grew 2.6% in the second quarter.
• Adjusted EBITDA was $424 million compared to $443 million in the second quarter of 2016.
• Global gaming product revenue increased 5% over the second quarter of 2016 driven by 25% growth in terminal sales.
• Interest expense was $116 million compared to $118 million in the prior-year period.
• Cash from operations was $543 million in the first half of the year and capital expenditures were $371 million. 
• Revenue for North America Gaming & Interactive was $310 million compared to $350 million in the second quarter of 2016.
• North America Lottery revenue was $293 million in the second quarter of 2017, compared to $286 million reported in the second quarter of 2016. 
• International revenue was $211 million compared to $207 million in the second quarter of 2016.