IGT revenues up in 2016

International Game Technology’s FY-2016 results are out, with revenues up but the disappointing downturn in its social online gaming asset Double Down continuing.

Highlights of the report include:

* Reported revenue up 10 percent y-o-y at $5.2 billion;

* Operating income up an impressive 22 percent to $660 million;

* Adjusted income up 12 percent to $1.2 billion.

* Debt down 2 percent to $7.6 billion;

* Adjusted EBITDA up 9 percent at $1.76 billion;

* DoubleDown’s third quarter losses of $26 million, taking these down to $267 million in Q3 continued, with the full year performance disappointing at $230 million in IGTs gaming service revenue report. The problems have been attributed to fewer daily active users at DoubleDown and a decrease in the player base.

IGT chief executive Marco Sala said that despite the challenges of the year the group reached a number of important milestones and continued to grow revenue.

“We reinforced our No.1 position in lottery globally, achieving robust same-store revenue growth and securing valuable, multi-year contracts,” he said, adding that good progress had been made on gaming turnaround with new titles and hardware, and the group had extended its international presence.

Group chief finance officer, Alberto Fornaro, said that the group had achieved its financial goals for 2016 and was now in a strong financial position through disciplined capital management, which had enabled a reduction in debt and an improvement in leverage profile despite a major upfront investment in the Italy Lotto.

“We expect 2017 to evolve as a year of two halves, with difficult comparisons in the first part of the year easing as we reach the second half,” he concluded.

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