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International Game Technology$14.20$.171.21%

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 International Game Technology PLC Reports Second Quarter 2019 Results
   Thursday, August 01, 2019 6:45:00 AM ET

LONDON, Aug. 1, 2019 /PRNewswire/ -- International Game Technology PLC ("IGT") (NYSE:IGT) today reported financial results for the second quarter ended June 30, 2019. Today, at 8:00 a.m. EDT, management will host a conference call and webcast to present the results; access details are provided below.

IGT is the global leader in gaming. We enable players to experience their favorite games across all channels and regulated segments, from Gaming Machines and Lotteries to Interactive and Social Gaming. Leveraging a wealth of premium content, substantial investment in innovation, in-depth customer intelligence, operational expertise and leading-edge technology, our gaming solutions anticipate the demands of consumers wherever they decide to play. We have a well-established local presence and relationships...



"We had a strong second quarter, with top-line growth driven by a sharp increase in gaming product sales and impressive gains in global lottery same-store revenues. Profits were up nicely in our North America Gaming and Italy segments," said Marco Sala, CEO of IGT. "I am pleased with the broad-based improvement in key performance indicators for our main businesses."

"EBITDA in the quarter was the highest we achieved in three years and translated into substantial free cash flow for the first half," said Alberto Fornaro, CFO of IGT. "Recent capital markets activity strengthens our financial structure, enhances flexibility, and positions us well for the coming years."

Overview of Consolidated Second Quarter 2019 Results















Consolidated revenue of $1.23 billion, up 5% at constant currency

  • Significant growth in global gaming product sales
  • Sustained momentum in lottery same-store revenue
  • More than offset increased machine gaming taxes in Italy

At constant currency, operating income rose 10% to $224 million; adjusted operating income up 6% to $274 million

Adjusted EBITDA increased 5% at constant currency to $454 million

  • Growth in North America Gaming & Interactive and Italy profits
  • Solid North America Lottery results
  • Net impact of discrete items in North America Gaming & Interactive segment
    • Multi-year, strategic lease and distribution agreement in Oklahoma
    • Higher litigation charges

Interest expense, net was $104 million, in line with the prior-year quarter 

Income taxes of $63 million and adjusted taxes of $79 million on increased pre-tax income; adjusted tax rate improved due to higher income in lower-tax jurisdictions

Net income attributable to IGT was $5 million in the quarter; adjusted net income attributable to IGT was $91 million, up from $57 million in the prior year on growth in profit before taxes and a lower adjusted tax rate

Net income per diluted share of $0.02; adjusted net income per diluted share of $0.44 versus $0.28 in the prior year

Net debt of $7.64 billion, down from $7.76 billion at December 31, 2018

Operating Segment Review

North America Gaming & Interactive















































































Revenue of $274 million, up 8% at constant currency

  • Gaming service revenue of $165 million, compared to $169 million in the prior- year period
    • Installed base stable year-over-year; up sequentially on an underlying basis
      • Growth in Class II markets, opening of Encore Boston Harbor
      • Net of 2,076-unit reduction due to new Oklahoma agreement
    • Slight decrease in other gaming services; large, multi-year poker contract in each period
  • Product sales revenue of $104 million, up 22% over the prior year
    • Terminal product sales rose 18% at constant currency
      • 54% increase in replacement units driven by strength of product offering; higher average selling price
      • Lower new/expansion activity compared to the prior year
    • Other product sales up 34% on strong systems revenue
  • Other service revenue includes contributions from sports betting and interactive

Operating income up 27% at constant currency on net impact of discrete items

North America Lottery




































































































































Revenue of $309 million, stable with the high level achieved in the prior year

  • Lottery service revenue of $238 million, essentially in line with the prior year
    • Overall same-store revenue up 7.2% driven by growth in instant ticket and draw games and increased jackpot activity
    • More than offsets impact of Illinois supply contract conclusion
  • Lottery product sales revenue of $32 million
    • Essentially matched significant contribution from Massachusetts hardware sales in the prior year

Operating income of $78 million, down 3% at constant currency on higher depreciation

International




























































































































Revenue of $229 million, up 20% at constant currency

  • Gaming product sales revenue of $114 million, up 76% at constant currency
    • Significant increase in terminal units shipped, including approximately 1,600 Sweden VLTs; average selling price down due to mix 
    • Other product sales driven by higher software revenue
  • Lottery service revenue of $67 million, essentially stable at constant currency
  • Gaming service revenue was $28 million
    • Year-over-year and sequential declines in the installed base due to conversions
    • Other gaming service revenue down on interactive performance and non-wager-related items

Operating income of $30 million compared to $36 million in the prior year, down $4 million at constant currency

  • Lower profit flow-through on service and product revenue
  • Higher SG&A

Italy
































































































































































































Revenue of $422 million, relatively stable at constant currency

  • Lottery service revenue of $190 million, up 4% at constant currency
    • Lotto wagers up 4.2% on continued growth in 10eLotto
    • Scratch & Win wagers rose 0.9% on success of new games
  • Gaming service revenue of $153 million compared to $176 million in the prior year
    • Increased taxes on AWP and VLT machines
    • Wagers grew despite lower installed base on quality of distribution network and new game introductions
  • Other service revenue of $79 million, up 16% at constant currency
    • Beneficial sports betting payout comparison; higher wagers despite World Cup in the prior year

Operating income of $133 million, up 8% at constant currency

  • Strong profit flow-through from lotteries, sports betting, and interactive
  • Beneficial shift in expense timing
  • More than offsets increased gaming machine taxes

Other Developments

The Company's Board of Directors declared a quarterly cash dividend of $0.20 per ordinary share

  • Record date of August 15, 2019
  • Payment date of August 29, 2019

Issuance of €750 million 3.5% Notes due 2026, as previously announced

  • Net proceeds used to redeem ~ €438 million 4.125% Notes due 2020
  • Balance used to partially repay utilizations under revolving credit facilities

Revolving credit facility amendment and extension in July 2019, as previously announced

  • Maturity extended to July 31, 2024
  • Aggregate commitments reduced to ~ 1.75 billion
  • Modifications to certain provisions that increase flexibility

Board appointment, as previously announced

  • The Company's Board of Directors appointed Dr. Samantha Ravich as an independent director, effective July 30, 2019

Outlook

Outlook updated for currency; no change to operating assumptions

  • 2019 adjusted EBITDA of $1.675 - $1.735 billion
  • Capital expenditures of $450 - $550 million
  • Full-year EUR/USD exchange rate of 1.12 vs. prior 1.15 estimate

Conference Call and Webcast

August 1, 2019, at 8:00 a.m. EDT

Live webcast available under "News, Events & Presentations" on IGT's Investor Relations website at www.IGT.com ; replay available on the website following the live event

Dial-In Numbers

  • US/Canada toll-free dial-in number is +1 844 842 7999
  • Outside the US/Canada toll-free number is +1 612 979 9887
  • Conference ID/confirmation code is 1990309
  • A telephone replay of the call will be available for one week
    • US/Canada replay number is +1 855 859 2056
    • Outside the US/Canada replay number is +1 404 537 3406
    • ID/Confirmation code is 1990309

Comparability of Results

All figures presented in this news release are prepared under U.S. GAAP, unless noted otherwise. Adjusted figures exclude the impact of items such as purchase accounting, impairment charges, restructuring expense, foreign exchange, and certain one-time, primarily transaction-related items. Reconciliations to the most directly comparable U.S. GAAP measures are included in the tables in this news release. Constant currency changes for 2019 are calculated using the same foreign exchange rates as the corresponding 2018 period. Management uses non-GAAP financial measures to understand and compare operating results across accounting periods, for internal budgeting and forecasting purposes, and to evaluate the Company's financial performance. Management believes these non-GAAP financial measures reflect the Company's ongoing business in a manner that allows for meaningful period-to-period comparisons and analysis of business trends. These constant currency changes and non-GAAP financial measures should however be viewed in addition to, and not as an alternative for, the Company's reported results prepared in accordance with U.S. GAAP.

About IGT
IGT (NYSE:IGT) is the global leader in gaming. We enable players to experience their favorite games across all channels and regulated segments, from Gaming Machines and Lotteries to Digital and Social Gaming. Leveraging a wealth of premium content, substantial investment in innovation, in-depth customer intelligence, operational expertise and leading-edge technology, our gaming solutions anticipate the demands of consumers wherever they decide to play. We have a well-established local presence and relationships with governments and regulators in more than 100 countries around the world, and create value by adhering to the highest standards of service, integrity, and responsibility. IGT has over 12,000 employees. For more information, please visit www.IGT.com .

Cautionary Statement Regarding Forward-Looking Statements
This news release may contain forward-looking statements (including within the meaning of the Private Securities Litigation Reform Act of 1995) concerning International Game Technology PLC and its consolidated subsidiaries (the "Company") and other matters. These statements may discuss goals, intentions, and expectations as to future plans, trends, events, dividends, results of operations, or financial condition, or otherwise, based on current beliefs of the management of the Company as well as assumptions made by, and information currently available to, such management. Forward-looking statements may be accompanied by words such as "aim," "anticipate," "believe," "plan," "could," "would," "should," "shall", "continue," "estimate," "expect," "forecast," "future," "guidance," "intend," "may," "will," "possible," "potential," "predict," "project" or the negative or other variations of them. These forward-looking statements speak only as of the date on which such statements are made and are subject to various risks and uncertainties, many of which are outside the Company's control. Should one or more of these risks or uncertainties materialize, or should any of the underlying assumptions prove incorrect, actual results may differ materially from those predicted in the forward-looking statements and from past results, performance, or achievements. Therefore, you should not place undue reliance on such statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include (but are not limited to) the factors and risks described in the Company's annual report on Form 20-F for the financial year ended December 31, 2018 and other documents filed from time to time with the SEC, which are available on the SEC's website at www.sec.gov and on the investor relations section of the Company's website at www.IGT.com . Except as required under applicable law, the Company does not assume any obligation to update these forward-looking statements. You should carefully consider these factors and other risks and uncertainties that affect the Company's business. All forward-looking statements contained in this news release are qualified in their entirety by this cautionary statement.

Contact:
Phil O'Shaughnessy, Global Communications, toll free in U.S./Canada +1 (844) IGT-7452; outside U.S./Canada +1 (401) 392-7452
Francesco Luti, +39 3485475493; for Italian media inquiries
James Hurley, Investor Relations, +1 (401) 392-7190
















































































 
















































































 



























































 









































































































































 












































































































 






























































 






























































 


























































































































































































































































































 


























































































































































































































































































 


























































































































































































































































































 


























































































































































































































































































 

















































































































































 

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/international-game-technology-plc-reports-second-quarter-2019-results-300894845.html

SOURCE International Game Technology PLC



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