Third-quarter net income attributable to gaming equipment maker and content provider International Game Technology Plc (IGT) fell 64.4 percent year-on-year to US$94 million, compared to US$264 million a year earlier, according to a Tuesday announcement.
The board nonetheless declared a quarterly cash dividend of US$0.20 per common share, payable on December 13.
The third-quarter 2022 result had been supported by the proceeds of disposal of a payments services business in Italy.
Group-wide revenue for the three months to September 30 this year was just under US$1.07 billion, flat year-on-year.
The firm said the quarterly revenue performance was “consistent with the prior year; up 6 percent net of Italy commercial services sale”.
The group’s third-quarter adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) rose 7.7 percent year-on-year, to US$433 million.
IGT runs three main segments: global lottery; global gaming; and PlayDigital, its online content arm.
“Third-quarter operating income rose 13 percent to US$239 million, and adjusted EBITDA of US$433 million was up 8 percent led by double-digit increases in global gaming and PlayDigital,” said Max Chiara, IGT’s chief financial officer, on an earnings call with investment analysts.
“These growth rates are even higher when you exclude US$12 million in profit that was contributed by the commercial service business in the prior year,” he added.
Revenue from global gaming was US$409 million in the third quarter this year, up 7.9 percent year-on-year.
Vince Sadusky, IGT’s chief executive, said on the call that “compelling games and innovative new cabinets” were “driving strong results” in the global gaming segment.
The quarterly revenue growth in the segment had “fuelled an over 40 percent increase in operating income,” he noted.
In a presentation deck with the earnings announcement, IGT said 15 percent of group revenue for the first nine months of this year came from “rest of the world” markets excluding the United States, Canada and Italy.
In the third quarter, the global gaming segment sold 2,537 machines in the rest-of-the-world markets, which was almost flat year-on-year. Including the U.S. and Canada, the group sold 9,158 units in the latest reporting period, a 2.2-percent increase from a year ago.
The average selling price per unit in the rest of the world markets – judged in absolute terms – was US$14,400, an increase of 3.6 percent year-on-year.
Third-quarter group revenue from global lottery was down 4.0 percent year-on-year, to US$601 million. Group revenue from PlayDigital was flat year-on-year, at US$55 million.
As of September 30, IGT had net debt of US$5.25 billion compared to US$5.15 billion at December 31 last year. The group’s net debt leverage was 3.0x, versus 3.1x as of December 31.
