Currency impacts effect ‘debt focused’ IGT Group’s Q2 2017 performance

Presenting its Q2 2017 trading update (period ending 30 June), New York-listed international lottery and gambling systems provider IGT Group Plc, has detailed that currency impacts have affected group wide metrics.

Updating the market, IGT would declare period group ‘consolidated’ revenues of $1.2 billion down 5% on corresponding Q2 2016’s $1.285 billion.  

The company detailed that the decline was mostly attributable to new lotto concessions gained during the period and the sale of social games division Double Down which was closed on 1 June.

Despite the group slowdown in revenues, IGT was positive of its divisional performance which had recorded a continued growth in sales for Italy and its North American multi-state jackpots division.

Closing a busy Q2 period The technology firm would report a period adjusted EBITDA of $424 million down 4% on Q2 2016’s $443 million, the firm stated that it had to make metric adjustments for the sale of Down Double and Italy concessions.

As a result, IGT Would declare a group operating income of $192 million, compared to $171 million in the second quarter of 2016.

“Our second quarter results reflect strong key performance indicators for both our global Lottery and Gaming businesses,” said Marco Sala, CEO of IGT.

“Lottery growth is benefiting from innovation and effective sales and product marketing initiatives. In Gaming, the global installed base was up and unit sales of gaming machines were higher, as were average selling prices, all supported by strong demand for new cabinets. Overall, we are pleased with the results of the first half, and we expect a more robust product offer to support stronger sales and profit levels in the second half of the year.”

Updating investors, IGT governance pointed to the firm’s ongoing commitment to significantly lower the firm’s corporate debt, which at present stands at $6.9 billion (2016: $7.83 billion)

“We’ve made a lot of good progress on many levels so far this year,” said Alberto Fornaro, CFO of IGT.

“We are lowering our debt and we are enhancing cash generation through disciplined asset and financial management. We are maintaining our outlook for adjusted EBITDA and net debt for the year, and have modestly reduced capital expenditures to account for certain timing shifts.”

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