IGT delivers inaugural combined results following merger

International Game Technology delivered its first set of results as a single company following its merger with GTECH saying while results were impacted by currency exchange conditions, its financial position remains strong.

Key performance indicators for the quarterly period ending June 30, 2015 include:

Group revenue increased 36 percent to $1,29 billion (Q2/2014: $945 million). Constant currency basis, consolidated revenue increased 1 percent.

Adjusted EBITDA was 427 million, up 32 percent, in constant currency it was in line with the prior year period.

Net loss of $117 million / loss per share of $0.59.

Net income of $70 million or $0.35 per share, on an adjusted basis.

Operating income of $116 million, compared to $171 million in Q2/2014. On a constant currency basis, an increase of 3 percent.

North America Gaming & Interactive were grouped into one of four customer-facing segments – Revenue was reported to be $353 million compared to $28 million in the second quarter of 2014.

Revenue from DoubleDown contributed $73 million, up 1.8 percent from the comparable period last year, while mobile penetration increased 38.8 percent.

Interactive gaming wagers declined 6.7 percent to Euro 414 million while sports betting wagers declined 6.2 percent to Euro 205 million.

International revenue was $247 million, 67 percent higher than the prior year on a reported basis. On a pro forma, constant currency basis, international revenue rose 17%, reflecting strong product sales for lottery terminals and gaming machines.

International gaming service revenue nearly tripled on a reported basis but declined 1% on a pro forma, constant currency basis.

Revenue in Italy was $432 million, 22 percent behind Q2/2014, principally due to the weakening of the euro against the U.S. dollar. Excluding currency translation, Italian revenue was down 4 percent from the prior-year period.

Total Lotto wagers in the quarter were up 11 percent to Euro 1.73 billion compared to Euro 1.56 billion last year.

Instant-ticket wagers declined 4 percent to Euro 2.22 billion versus Euro 2.32 billion last year.

Machine gaming revenue declined 8 percent in constant currency, reflecting the higher taxes associated with the Stability Law.

Looking ahead, the company said it expects to realise $230 million in cost synergies by April 2018 and two-thirds of targeted savings on an annualised basis by April 2018.

In addition, the board initiated a quarterly cash dividend of $0.20 per ordinary share, payable on September 10, 2015.