International Game Technology’s Q2 financials saw the light of day this week, with a heavy focus on a strong performance driven by gaming product sales and big gains in global lottery same-store revenues.
The headline figures show operating income of $224m and adjusted operating income of $274m, up said the firm by 6% at constant currency. Adjusted EBITDA was $454m, ahead by 5% at constant currency, pushed by higher North America Gaming and Italy profits. Year-to-date operating cash flow, meanwhile, was $592m with a free cash flow of $361m.
CEO Marco Sala advised: “We had a strong second quarter, with top-line growth driven by a sharp increase in gaming product sales and impressive gains in global lottery same-store revenues. Profits were up nicely in our North America Gaming and Italy segments. I am pleased with the broad-based improvement in key performance indicators for our main businesses.”
CFO Alberto Fornaro added: “EBITDA in the quarter was the highest we achieved in three years and translated into substantial free cash flow for the first half. Recent capital markets activity strengthens our financial structure, enhances flexibility, and positions us well for the coming years.”
Looking at the firm’s North American gaming and interactive businesses, gaming service revenue fell to $165m from $169m year-on-year with its installed base described as stable year-on-year but up sequentially on an underlying basis. Product sales revenue came in at $104m, up 22% on Q2 2018.
Lottery service revenue of $238m was cited by the firm as essentially in line with the prior year, however overall same-store revenue was up 7.2% driven by growth in instant ticket and draw games and increased jackpot activity. Operating income of $78 million was down 3% at constant currency on higher depreciation.
Headline figures
- Revenue increased 5% at constant currency on significant growth in global gaming product sales and continued strength in global lottery same-store revenue
- Operating income of $224 million; adjusted operating income of $274 million, up 6% at constant currency
- Adjusted EBITDA of $454 million, up 5% at constant currency, driven by higher North America Gaming and Italy profits
- Year-to-date operating cash flow of $592 million and free cash flow of $361 million, record first-half levels
- Cash dividend declared of $0.20 per ordinary share
