GGRAsia – IGT reinstates dividend, ups op income forecast on strong 3Q

IGT reinstates dividend, ups op income forecast on strong 3Q

Nov 09, 2021 Newsdesk Industry Talk, Latest News

Gaming and lottery provider International Game Technology Plc (IGT) reported on Tuesday third-quarter revenue of US$984 million, up 20.6 percent from a year earlier. The result was “propelled by double-digit growth across all business segments,” the firm said in a release.

Based on the “strong business trends”, IGT stated it was reinstating it US$0.20 per common share quarterly cash dividend policy, while raising its full-2021 operating income outlook to about US$900 million from a prior estimate of approximately US$800 million.

The next quarterly dividend is to be paid on December 7, to shareholders on the record on November 23.

“Based on our excellent year-to-date results and our solid financial condition, the board reinstated a quarterly cash dividend, signaling their confidence in the company’s prospects,” said IGT’s chief executive, Marco Sala, as quoted in the company’s press release.

The document also quoted Max Chiara, chief financial officer of IGT, as saying: “We are supporting strong top-line growth with strategic investments in the business while still making good progress on optimising our cost structure.”

IGT’s third-quarter revenue figure was however down 5.5 percent from the previous quarter.

The firm reported operating income of US$212 million in the three months to September 30. The result was down 13.1 percent quarter-on-quarter but was an improvement on the US$87 million operating income posted a year earlier.

IGT recorded a net profit of US$65 million for the three months to September 30, compared to a US$128-million loss in the prior-year period. The company said the result was “driven by higher revenue and operating profit, and a reduction in foreign exchange losses,” according to Tuesday’s press release.

Third-quarter profit was down from the US$306 million reported in the second quarter of 2021.

Adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) stood at US$407 million, up 41.8 percent from a year earlier, but a 7.9-percent decline sequentially.

Revenue in the gaming segment rose by 33.8 percent year-on-year, to US$289 million. Adjusted EBITDA in the gaming segment was US$64 million, an improvement on the negative US$18 million result recorded in the third quarter of 2020.

The firm said its global gaming business segment achieved in the three months ended September 30 its “highest quarterly revenue and profit levels in seven quarters as progressive recovery continues.”

IGT stated it sold 5,701 gaming machine units globally during the reporting period, up from 3,671 in the prior-year quarter. That included 1,009 new units and 4,692 replacements. The company had said it sold 6,335 units in the second quarter this year.

The firm reported a US$1.2-billion net debt reduction in the first nine months of 2021. The company’s net debt position stood at US$6.11 billion as at the end of the third quarter, down from US$6.31 billion as of end-June.