IGT Q2 earnings hit by $122 million debt costs

IGT

Reporting for the first time as a single entity, IGT Plc the merged gambling and lottery technology operator of GTECH and International Game Technology (IGT) (merger date 7 April 2015), presented results for Q2 2015 trading.

Due to its merger, IGT Plc governance noted that a number of items affect the comparability of its reported results for Q2 2014. In order to present its results IGT presented corporate records in ‘consolidated’ and ‘pro forma’ results. (See graph below)

proforma

The New York listed technology provider reported consolidated revenue growth of 39% to $1.29 billion (Q2 2014 – $945 million).The joint IGT merger would further report EBITDA earnings of $427 million (up 32% on Q2 2014).

However IGT would report a 32% decline in operating income to $116 million, as the company incurred interest expenses of $122 million on debt gained from its finance of its IGT legacy acquisition.

The creation of IGT Plc has placed a net debt of $8.3 billion as of 30 June.

Detailing corporate performance, IGT would highlight that it had seen year on year revenue increase for all core business divisions, US, Interactive, International and Italy.

Commenting on corporate performance IGT Plc CEO Marco Sala stated

“As anticipated, our second quarter results reflect the stable growth characteristics of our global lottery operations and a meaningful sequential improvement in our gaming operations.  We have accomplished a lot in the past four months, notably organizing ourselves under a single leadership team and consolidating our manufacturing footprint. There is much more ahead of us.  In this year of transformation, we will continue to focus on integration to provide a solid foundation for future growth and value creation.”

Alberto Fornaro, CFO of IGT Plc added. “Our adjusted operating income improved from the prior year’s level on a pro forma, constant currency basis and our financial condition remains strong. We will continue to operate with our customary, disciplined cost management and are confident in achieving our synergy targets according to plans.”

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