IGT revenue up 3% in Q3, driven by "sharp growth" in global gaming product sales

International Game Technology (IGT) today reported financial results for the third quarter of 2019. Total revenue increased by 3% to $1.15 billion at constant currency on significant growth in global gaming product sales, overcoming significant Finland multi-year software sale in prior-year quarter and impact of higher machine gaming taxes in Italy.

Operating income was down 19% to $154 million, and adjusted operating income down 11% to $221 million. Adjusted EBITDA declined 5% at constant currency to $407 million, with differential profit flow-through on revenue mix, primarily due to high-margin Finland software transaction in prior year. 

"Our core businesses achieved significant momentum in the third quarter and year-to-date periods," said Marco Sala, CEO of IGT. "Key performance indicators were solid in the quarter – gaming machine unit shipments increased 44%, while same-store revenue for draw games and instants rose 4%. Our leading positions are rooted in our focus on player-driven performance, which was on display at recent lottery and gaming trade shows and should sustain our momentum going forward."

Furthermore, the company reported strong year-to-date operating cash flow of $789 million and free cash flow of $456 million. Cash dividend declared was $0.20 per ordinary share.

"IGT has generated free cash flow in excess of $450 million in the first nine months," said Alberto Fornaro, CFO of IGT. "This confirms the inflection we expected to achieve this year. We are well positioned to achieve our 2019 strategic and financial goals."