Second-quarter operating income at lottery, gaming equipment, and digital content supplier International Game Technology Plc (IGT) fell 6.6 percent year-on-year, to US$228.0 million, it said in a Tuesday filing in the United States.
That was on consolidated revenue that dipped 1.9 percent year-on-year, to just over US$1.02 billion. Operating income margin was down 4.3 percent, at 22.0 percent.
Group adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) fell 7.5 percent year-on-year, to US$409.0 million.
“Rigour on costs and incremental revenue opportunities allow us to maintain our full-year operating income margin outlook despite unfavourable currency movements and macroeconomic challenges,” said Max Chiara, chief financial officer, as cited in an accompanying press release.
IGT’s board declared a cash dividend of US$0.20 per share for the three months to June 30, equal to US$41.0 million for the quarter. It is payable on August 30, to shareholders registered as of business close on August 16.
Net debt for the group was down 9.3 percent year-on-year, at just over US$5.72 billion.
IGT nonetheless recognised in the second quarter a non-operating expense of US$150 million, representing “the probable loss associated with legal proceedings” in the U.S., related to Double Down Interactive LLC and its social gaming business sold in 2017.
IGT’s second-quarter consolidated revenue from the “rest of the world” business – including the Asia-Pacific region – was 14.5 percent of the total, at US$148.0 million. IGT gets the greatest portion of its revenue from its global lottery business, though that was down 10.6 percent year-on-year, at US$648.0 million.
Revenue from IGT’s land-based global gaming business globally was up 20.4 percent year-on-year, to US$330 million. Operating income from global gaming soared, to US$57.0 million, versus only US$1.0 million in the second quarter 2021.
Adjusted quarterly EBITDA from global gaming leapt by 148.6 percent, to US$87.0 million.
Total installed base units in the global gaming business narrowed 2.4 percent year-on-year, to 47,898. But total revenue from global gaming product sales was up 20.4 percent, at US$330.0 million.
In the “rest of the world” segment – including the Asia Pacific region – for gaming machine sales, the tally was down 2.7 percent year-on-year, at 2,147 units. Of those, 83.7 percent – or 1,798 – were replacement units.
The average selling price per unit in that segment was US$13,400, up 5.5 percent year-on-year.
In its digital and betting business, IGT recorded second-quarter revenue of US$43.0 million, up 2.4 percent. Adjusted EBITDA in that business was down 7.7 percent year-on-year, to US$12.0 million.
During the second quarter, IGT announced an agreement to acquire iSoftBet, for approximately EUR160 million (US$162.6 million) in cash. iSoftBet is an online and mobile casino games supplier, and third-party game aggregator.
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