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 International Game Technology PLC Reports Fourth Quarter And Full Year 2016 Results
   Thursday, March 09, 2017 6:45:00 AM ET

-- Fourth quarter net income of $233 million; adjusted EBITDA of $422 million reflects broad-based lottery growth and higher gaming product sales

-- 2016 net income of $211 million; adjusted 2016 EBITDA of $1,755 million on strong North America and Italy performance

-- Net debt of $7,569 million at year end

-- Cash dividend declared of $0.20 per ordinary share

http://photos.prnewswire.com/prnvar/20150406/196736LOGO

International Game Technology PLC ("IGT") (IGT ) today reported financial results for the fourth quarter and year ended December 31, 2016. Today, at 8:00 a.m. EST / 1:00 p.m. GMT / 2:00 p.m. CET, management will host a conference call and webcast to present the fourth quarter and full year 2016 results; access details are provided below.

"We reached many important milestones in 2016," said Marco Sala, CEO of IGT. "We reinforced our number one position in Lottery globally, achieving robust same-store revenue growth and securing valuable, multi-year contracts. We also made good progress with our Gaming turnaround, developing compelling new titles and hardware, in addition to expanding our International presence. We operate in growing global market segments and IGT has a long history of investing in innovation to create shareholder value."

"We achieved our financial goals for 2016 and ended the year in strong financial condition," said Alberto Fornaro, CFO of IGT. "Disciplined capital management enabled us to reduce our debt and improve our leverage profile despite the large upfront investment in the Italy Lotto. We expect 2017 to evolve as a year of two halves, with difficult comparisons in the first part of the year easing as we reach the second half."

Summary of Consolidated Fourth Quarter and Full Year Financial Results

                                           Reported
                                                               Constant
Quarter Ended December 31,                 2016  2015   Change Currency
                                                        (%)    Change
                                                               (%)
(In US $ millions, unless otherwise noted)
Revenue                                    1,321 1,365  -3%    -2%
Operating Income                           138   132    5%     5%
Net income per diluted share               1.15  0.37   NM     NM
Net debt                                   7,569 7,707  -2%    -
Adjusted EBITDA                            422   449    -6%    -6%
Adjusted Operating Income                  281   293    -4%    -4%
Adjusted net income per diluted share      0.88  0.63   40%    NA
                                           Reported            Pro forma
                                                                                     Constant
Year Ended December 31,                    2016  2015   Change 2016     2015  Change Currency
                                                        (%)                   (%)    Change (%)
(In US $ millions, unless otherwise noted)
Revenue                                    5,154 4,689  10%    5,154    5,088 1%     2%
Operating Income                           660   540    22%    660      533   24%    24%
Net income (loss) per diluted share        1.05  (0.39) NM     1.05     NA    NA     NA
Net debt                                   7,569 7,707  -2%    7,569    7,707 -2%    -
Adjusted EBITDA                            1,755 1,611  9%     1,755    1,704 3%     3%
Adjusted Operating Income                  1,167 1,043  12%    1,167    1,069 9%     9%
Adjusted net income per diluted share      2.33  1.88   24%    2.33     NA    NA     NA
Note: Pro forma is defined as the combined results of GTECH and legacy IGT for period prior to the second quarter of 2015. Adjusted operating income, adjusted EBITDA, and adjusted net income per diluted share are non-GAAP financial measures.  Reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures are provided at the end of this news release.

Comparability of Results

All figures presented in this news release are prepared under U.S. GAAP, unless noted otherwise.

As a result of the combination of GTECH S.p.A. ("GTECH") and International Game Technology ("legacy IGT"), which was completed on April 7, 2015, a number of items affect the comparability of reported results. Reported financial information for the full year 2016 includes the results of operations of IGT PLC for the entire period, while reported financial information for the full year 2015 period includes IGT PLC for the second, third, and fourth quarters and only GTECH operations in the first quarter. Pro forma figures represent the combined results of both companies.

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.

Reported 2016 results were impacted by the strengthening of the U.S. dollar compared to the euro; the daily average Euro to U.S. dollar foreign exchange rate was 1.08 in the fourth quarter of 2016 compared to 1.10 in the fourth quarter of 2015, and was 1.11 for the full year 2016 period compared to 1.11 in 2015. Constant currency changes for 2016 are calculated using the same foreign exchange rates as the corresponding 2015 period.

Management believes that referring to certain pro forma, constant currency, or adjusted measures is a more useful way to evaluate the Company’s underlying performance.

Overview of Consolidated Fourth Quarter Results

Consolidated revenue declined 3% to $1,321 million from $1,365 million in the fourth quarter of 2015, which included approximately $20 million of revenue benefits related to the catch-up reclassification of Stability Law taxes on gaming machines in Italy. Lower revenue reflects global lottery growth that was more than offset by lower gaming service revenue, mostly at DoubleDown.

Global lottery same-store revenue, excluding Italy, increased 2% during the fourth quarter while Italy lottery wagers increased 4%. Product sales rose 1% in the quarter on higher North America systems sales and the contribution from a recent intellectual property settlement. The Company shipped 10,320 gaming machines worldwide during the fourth quarter.

Adjusted EBITDA of $422 million was 6% below the fourth quarter of 2015. Operating income was $138 million compared to $132 million in the fourth quarter of 2015, and adjusted operating income was $281 million compared to $293 million in the prior year. The declines in adjusted EBITDA and adjusted operating income primarily reflect an incremental $14 million of Italy value-added tax ("VAT") credit in the prior-year period, in addition to higher selling, general and administrative expenses.

Interest expense was $116 million compared to $119 million in the prior-year period.

Net income attributable to IGT was $233 million in the fourth quarter of 2016, reflecting the impact of $196 million in primarily non-cash foreign exchange gains and the favorable settlement of discrete tax items. On an adjusted basis, net income attributable to IGT was $179 million. The Company reported net income per diluted share of $1.15 and earned $0.88 per diluted share on an adjusted basis.

Cash from operations was $985 million in the full-year period and capital expenditures were $557 million. The Company made two of three upfront installment payments for the new Lotto concession in Italy during the year.

Cash and cash equivalents were $294 million as of December 31, 2016, compared to $627 million as of December 31, 2015. Net debt was $7,569 million as of December 31, 2016.

Operating Segment Review

North America Gaming & Interactive Revenue for the North America Gaming & Interactive segment was $368 million compared to $378 million in the fourth quarter of 2015.

Gaming service revenue was $230 million compared to $263 million in the prior-year period, primarily driven by fewer daily active users ("DAU") at DoubleDown and a year-on-year decrease in the installed base.

Product sales rose 20% to $138 million in the quarter primarily driven by large systems sales; the contribution from a recent intellectual property settlement; and, as previously communicated, revenue associated with certain gaming machines shipped in the third quarter of 2016. The segment shipped 5,419 units in the period compared to 6,597 units in the fourth quarter of 2015, which included an additional 1,100 Canada video lottery terminals ("VLT").

Operating income for North America Gaming & Interactive was $101 million compared to $106 million in the fourth quarter of 2015. The decline is primarily due to lower DoubleDown and gaming service revenue, partially offset by higher product sales.

North America Lottery North America Lottery revenue was $284 million, up 6% from the fourth quarter of 2015.

Service revenue of $267 million increased 5%. Lottery same-store revenue rose 1.5%, supported by the third consecutive year of strong instant tickets performance. Multi-state Jackpot game performance was modestly below the prior year’s level after several quarters of above-average results.

Product sales were $17 million, compared to $14 million in the fourth quarter of 2015, primarily due to increased instant ticket printing activity.

Operating income for North America Lottery increased 54% to $65 million compared to the fourth quarter of 2015. Higher revenues, in addition to lower depreciation and amortization expense associated with recent lottery contract extensions, contributed to the substantial profit growth.

International International revenue was $220 million compared to $265 million in the fourth quarter of 2015. On a constant currency basis, International revenue declined 15%.

International lottery same-store revenue increased 2.6% on broad-based geographical strength that was tempered by weakness in the United Kingdom.

International gaming service revenue rose 6% on a constant currency basis, primarily due to growth in the commercial gaming installed base, and despite approximately 600 units that were converted to product sales. The installed base grew in Eastern Europe, South Africa and Mexico.

Product sales were below the prior-year period, mostly on lottery product sales, which reflect the natural variability of that business. Gaming terminal sales declined slightly on lower unit volume. Systems sales increased double-digits year-over-year. The segment shipped a total of 4,901 gaming machines compared to 4,965 last year.

International operating income was $44 million compared to $55 million in the fourth quarter of 2015, reflecting lower revenue.

Italy Italy revenue was $449 million compared to $455 million in the fourth quarter of 2015. At constant currency, revenue was in line with the prior year. The fourth quarter comparisons are impacted by an approximately $20 million catch-up Stability Law reclassification booked in the prior-year period, in addition to one month of amortization of the new Lotto upfront concession fee.

Total Lotto wagers in the quarter were EUR 2,141 million, 15% greater than the EUR 1,855 million achieved in the prior-year period. Strong Lotto performance was a result of significant late number activity and high single-digit growth in 10eLotto. Excluding late numbers, Lotto wagers increased 2% over the same period last year. Instant-ticket wagers were EUR 2,289 million versus EUR 2,391 million in the fourth quarter of 2015.

Machine gaming service revenue was down given the prior-year Stability Law reclassification. Sports betting wagers increased 6% on growth in live wagers.

Operating income for the Italy segment was $130 million compared to $132 million in the fourth quarter of 2015. At constant currency, operating income was stable as strong Lotto growth compensated for the VAT credit in the prior year.

Overview of Consolidated Full Year 2016 Results

Reported consolidated revenue was $5,154 million compared to $4,689 million in 2015. On a pro forma, constant currency basis, consolidated revenue increased 2%, primarily reflecting growth in lottery service revenue that was partially offset by lower DoubleDown performance and gaming product sales.

During the year, the Company shipped 33,147 gaming machines worldwide and global lottery same-store revenue, excluding Italy, increased 8%. Italy lottery wagers rose 6% in 2016.

On a reported basis, adjusted EBITDA of $1,755 million was 9% greater than the 2015 level. On a pro forma, constant currency basis, adjusted EBITDA increased 3%.

Reported operating income was $660 million compared to $540 million in 2015. On a pro forma, constant currency basis, adjusted operating income was 9% greater than 2015, primarily reflecting higher lottery service revenue that was partially offset by lower lottery product sales.

Interest expense was $469 million compared to $458 million in the prior-year period.

Net income attributable to IGT was $211 million in 2016. On an adjusted basis, net income was $472 million. The Company reported earnings per diluted share of $1.05 and earned $2.33 per diluted share on an adjusted basis in 2016.

Other Developments

In a separate news release issued today, the Company announced that Heather J. McGregor was appointed as an independent director to its board of directors.

Additionally, the Company’s board of directors has declared a quarterly cash dividend of $0.20 per ordinary share. The dividend is payable on April 6, 2017 to all shareholders of record as of the close of business on March 23, 2017.

Outlook

The Company currently expects to achieve adjusted EBITDA of $1,680-$1,760 million for the full year 2017 period, as operational growth compensates for the Powerball and late numbers benefits recorded in 2016, in addition to new Lotto concession impacts in 2017.

Maintenance capital expenditures are expected to be $525-$575 million, including approximately $100 million related to the timing of the new Florida Lottery contract. Growth capital expenditures will be approximately $100 million.

The Italy Lotto renewal will require an outlay of approximately $320 million ($195 million net, after minority partner contribution), relating to the final upfront concession payment and associated network and infrastructure upgrades. Net debt is expected to be $7,600-$7,800 million at the end of 2017.

The Company’s outlook assumes an average euro/dollar exchange rate of 1.10.

Conference Call and Webcast

Today, at 8:00 a.m. EST / 1:00 p.m. GMT / 2:00 p.m. CET, management will host a conference call to present the fourth quarter and full year 2016 results. Listeners may access a live webcast of the conference call along with accompanying slides under "News, Events and Presentations" on IGT’s Investor Relations website at www.IGT.com. A replay of the webcast will be available on the website following the live event. To listen by telephone, the dial-in number is +44 (0) 20 3427 1904 for participants in the United Kingdom and +1-646-254-3362 for listeners outside the United Kingdom. The conference ID/confirmation code is 6623346. A telephone replay of the call will be available for one week at +44 (0) 20 3427 0598 or +1-347-366-9565 using the conference ID/confirmation code 6623346.

About IGT IGT (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 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 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 International Game Technology PLC 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 are subject to various risks and uncertainties, many of which are outside International Game Technology PLC’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 the forward-looking statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include (but are not limited to) the possibility that the businesses of International Game Technology (Nevada) and GTECH S.p.A. will not be integrated successfully, or that the combined companies will not realize estimated cost savings, synergies, growth or other anticipated benefits or that such benefits may take longer to realize than expected; unanticipated costs of integration of International Game Technology (Nevada) and GTECH S.p.A.; the possibility that International Game Technology PLC will be unable to pay future dividends to shareholders or that the amount of such dividends may be less than anticipated; the possibility that International Game Technology PLC may not obtain its anticipated financial results in one or more future periods; reductions in customer spending; a slowdown in customer payments and changes in customer demand for products and services as a result of changing economic conditions or otherwise; unanticipated changes relating to competitive factors in the industries in which International Game Technology PLC operates; International Game Technology PLC’s ability to hire and retain key personnel; the impact of the consummation of the business combination on relationships with third parties, including customers, employees and competitors; International Game Technology PLC’s ability to attract new customers and retain existing customers in the manner anticipated; reliance on and integration of information technology systems; changes in legislation or governmental regulations affecting International Game Technology PLC, including as a consequence of the announced withdrawal of the U.K. from the EU; international, national or local economic, social or political conditions that could adversely affect International Game Technology PLC or its customers; conditions in the credit markets; changes in the top management team; risks associated with assumptions International Game Technology PLC makes in connection with its critical accounting estimates; the resolution of pending and potential future legal, regulatory or tax proceedings and investigations; and International Game Technology PLC’s international operations, which are subject to the risks of currency fluctuations and foreign exchange controls. The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties that affect International Game Technology PLC’s business, including those described in International Game Technology PLC’s annual report on Form 20-F for the financial year ended December 31, 2015 and other documents filed from time to time with the Securities and Exchange Commission (the "SEC"), which are available on the SEC website at www.sec.gov and on the investor relations section of International Game Technology PLC’s website at www.IGT.com. Except as required under applicable law, International Game Technology PLC does not assume any obligation to update the forward-looking statements. Nothing in this news release is intended, or is to be construed, as a profit forecast or to be interpreted to mean that earnings per International Game Technology PLC share for the current or any future financial years will necessarily match or exceed the historical published earnings per International Game Technology PLC share, as applicable. All forward-looking statements contained in this news release are qualified in their entirety by this cautionary statement. All subsequent written or oral forward-looking statements attributable to International Game Technology PLC, or persons acting on its behalf, are expressly qualified in their entirety by this cautionary statement.

Contact: Robert K. Vincent, Corporate Communications, toll free in U.S./Canada +1 (844) IGT-7452; outside U.S./Canada +1 (401) 392-7452 James Hurley, Investor Relations, +1 (401) 392-7190 Simone Cantagallo, +39 06 51899030; for Italian media inquiries

International Game Technology PLC
Condensed Consolidated Statements of Operations
($ and shares in thousands, except per share data)
Unaudited
                                                             For the three months ended
                                                             December 31,
                                                             2016        2015
Service revenue                                              1,061,669   1,109,029
Product sales                                                259,547     255,928
Total revenue                                                1,321,216   1,364,957
Cost of services                                             641,649     674,302
Cost of sales                                                179,240     180,021
Selling, general and administrative                          236,547     242,997
Research and development                                     87,182      84,552
Restructuring expense                                        6,420       35,326
Impairment loss                                              31,162      12,497
Transaction expense, net                                     1,030       3,701
Total operating expenses                                     1,183,230   1,233,396
Operating income                                             137,986     131,561
Interest income                                              2,553       4,765
Other income (expense), net                                  23,359      (2,074)
Foreign exchange gain, net                                   195,587     91,105
Interest expense                                             (115,520)   (119,334)
Total non-operating income (expenses)                        105,979     (25,538)
Income before provision for income taxes                     243,965     106,023
(Benefit from) provision for income taxes                    (5,387)     22,990
Net income                                                   249,352     83,033
Less: Net income attributable to non-controlling interests   16,034      9,533
Net income attributable to IGT PLC                           233,318     73,500
Net income attributable to IGT PLC per common share - basic  1.15        0.37
Net income attributable to IGT PLC per common share - diluted1.15        0.37
Weighted-average shares - basic                              202,324     199,862
Weighted-average shares - diluted                            203,146     200,731
International Game Technology PLC
Condensed Consolidated Statements of Operations
($ and shares in thousands, except per share data)
Unaudited
                                                                    For the year ended
                                                                    December 31,
                                                                    2016        2015
Service revenue                                                     4,375,586   3,977,693
Product sales                                                       778,310     711,363
Total revenue                                                       5,153,896   4,689,056
Cost of services                                                    2,553,479   2,417,315
Cost of sales                                                       582,358     520,343
Selling, general and administrative                                 945,824     795,252
Research and development                                            343,531     277,401
Restructuring expense                                               27,934      76,896
Impairment loss                                                     37,744      12,497
Transaction expense, net                                            2,590       49,396
Total operating expenses                                            4,493,460   4,149,100
Operating income                                                    660,436     539,956
Interest income                                                     12,840      17,681
Other income (expense), net                                         18,365      (122,295)
Foreign exchange gain, net                                          101,040     5,611
Interest expense                                                    (469,268)   (457,984)
Total non-operating expenses                                        (337,023)   (556,987)
Income (loss) before provision for income taxes                     323,413     (17,031)
Provision for income taxes                                          59,206      38,896
Net income (loss)                                                   264,207     (55,927)
Less: Net income attributable to non-controlling interests          52,870      19,647
Net income (loss) attributable to IGT PLC                           211,337     (75,574)
Net income (loss) attributable to IGT PLC per common share - basic  1.05        (0.39)
Net income (loss) attributable to IGT PLC per common share - diluted1.05        (0.39)
Weighted-average shares - basic                                     201,511     192,398
Weighted-average shares - diluted                                   202,214     192,398
International Game Technology PLC
Condensed Consolidated Balance Sheets
($ thousands)
Unaudited
                                                              December 31,
                                                              2016        2015
ASSETS
Current assets:
Cash and cash equivalents                                     294,094     627,484
Restricted cash and investments                               247,222     169,101
Trade and other receivables, net                              947,237     959,592
Inventories                                                   347,494     269,982
Other current assets                                          424,727     423,701
Income taxes receivable                                       28,792      35,514
Total current assets                                          2,289,566   2,485,374
Systems, equipment and other assets related to contracts, net 1,199,674   1,127,518
Property, plant and equipment, net                            357,841     349,677
Goodwill, net                                                 6,810,012   6,830,499
Intangible assets, net                                        2,874,031   3,335,633
Other non-current assets                                      1,497,662   937,917
Deferred income taxes                                         31,376      48,074
Total non-current assets                                      12,770,596  12,629,318
Total Assets                                                  15,060,162  15,114,692
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable                                              1,216,079   1,057,860
Other current liabilities                                     1,097,045   922,586
Current portion of long-term debt                             77          160
Income taxes payable                                          28,590      30,020
Total current liabilities                                     2,341,791   2,010,626
Long-term debt, less current portion                          7,863,085   8,334,013
Deferred income taxes                                         761,924     941,418
Other non-current liabilities                                 444,556     462,493
Total non-current liabilities                                 9,069,565   9,737,924
Total Liabilities                                             11,411,356  11,748,550
Commitments and contingencies                                 -           -
Shareholders’ and mezzanine equity                            3,648,806   3,366,142
Total liabilities and shareholders’ equity                    15,060,162  15,114,692
International Game Technology PLC
Consolidated Statements of Cash Flows
($ thousands)
Unaudited
                                                               For the year ended December 31,
                                                               2016         2015
Operating activities
Net income (loss)                                              264,207      (55,927)
Adjustments for:
Amortization                                                   492,021      410,264
Depreciation                                                   390,448      369,564
Amortization of upfront payments to customers                  116,980      107,812
Impairment loss                                                37,744       12,497
Stock-based compensation expense                               26,346       36,067
Debt issuance cost amortization                                18,347       40,366
Foreign exchange gain, net                                     (101,040)    (5,611)
Loss on extinguishment of debt                                 -            73,806
Other, net                                                     (142)        50,626
Cash flows before changes in operating assets and liabilities  1,244,911    1,039,464
Changes in operating assets and liabilities:
Trade and other receivables                                    (23,758)     83,218
Inventories                                                    (61,026)     72
Accounts payable                                               (27,123)     (53,762)
Other assets and liabilities                                   (147,661)    (282,995)
Net cash flows from operating activities                       985,343      785,997
Investing activities
Upfront payments to customers                                  (665,260)    -
Capital expenditures                                           (557,238)    (402,634)
Purchases of jackpot annuity investments                       (2,596)      (6,799)
Proceeds from jackpot annuity investments                      16,565       36,215
Proceeds from sale of assets                                   185,798      230,587
Acquisition of IGT, net of cash acquired                       -            (3,241,415)
Other                                                          2,735        22,523
Net cash flows used in investing activities                    (1,019,996)  (3,361,523)
Financing activities
Principal payments on long-term debt                           (357,513)    (2,714,867)
Dividends paid                                                 (161,179)    (209,589)
Return of capital - non-controlling interest                   (35,407)     (30,568)
Dividends paid - non-controlling interest                      (32,717)     (29,156)
Debt issuance costs paid                                       (10,825)     (84,859)
Payments for accelerated stock awards                          (3,489)      (14,867)
Proceeds from stock options                                    12,699       10,672
Net receipts from (payments of) financial liabilities          30,595       (21,539)
Capital increase - non-controlling interest                    256,455      9,049
Payments in connection with note consents                      -            (29,022)
Payments on bridge facility                                    -            (51,409)
Payments in connection with the early extinguishment of debt   -            (79,526)
Payments to withdrawing shareholders                           -            (407,759)
Proceeds from interest rate swaps                              -            67,773
Proceeds from issuance of long-term debt                       -            6,521,991
Other                                                          (10,758)     (16,158)
Net cash flows (used in) provided by financing activities      (312,139)    2,920,166
Net (decrease) increase in cash and cash equivalents           (346,792)    344,640
Effect of exchange rate changes on cash                        13,402       (34,262)
Cash and cash equivalents at the beginning of the period       627,484      317,106
Cash and cash equivalents at the end of the period             294,094      627,484
Supplemental Cash Flow Information:
Interest paid                                                  (450,655)    (365,479)
Income taxes paid                                              (183,278)    (199,195)
International Game Technology PLC
Net Debt
($ thousands)
                                     December 31,
                                     2016       2015
Long-term debt, less current portion
6.250% Senior Secured Notes due 2022 1,472,150  1,468,875
6.500% Senior Secured Notes due 2025 1,085,537  1,084,249
4.750% Senior Secured Notes due 2023 884,917    912,418
4.125% Senior Secured Notes due 2020 730,465    752,212
5.625% Senior Secured Notes due 2020 593,954    592,245
7.500% Senior Secured Notes due 2019 521,894    530,009
6.625% Senior Secured Notes due 2018 521,556    533,915
4.750% Senior Secured Notes due 2020 509,050    520,649
5.500% Senior Secured Notes due 2020 126,294    126,833
5.350% Senior Secured Notes due 2023 61,187     61,303
Senior Secured Notes                 6,507,004  6,582,708
Term Loan Facilities due 2019        839,552    866,785
Revolving Credit Facilities due 2021 516,529    834,968
Capital Securities                   -          49,472
Other                                -          80
Long-term debt, less current portion 7,863,085  8,334,013
Current portion of long-term debt    77         160
Total debt                           7,863,162  8,334,173
Cash and cash equivalents            294,094    627,484
Net debt                             7,569,068  7,706,689
International Game Technology PLC
Adjusted EBITDA and Free Cash Flow
Reconciliations of Non-GAAP Financial Measures
($ thousands)
                                               For the three months ended
                                               December 31,
                                               2016       2015
Net income                                     249,352    83,033
(Benefit from) provision for income taxes      (5,387)    22,990
Non-operating (income) expenses                (105,979)  25,538
Amortization                                   114,858    124,000
Depreciation                                   97,164     109,888
Amortization of upfront payments to customers  31,820     26,634
Impairment loss                                31,162     12,497
Restructuring expense                          6,420      35,326
Stock-based compensation expense               1,844      3,335
Transaction expense, net                       1,030      3,701
Non-cash purchase accounting (excluding D&A)   (126)      1,865
Adjusted EBITDA                                422,158    448,807
Cash flows from operating activities           364,346    315,003
Capital expenditures                           (185,741)  (113,891)
Upfront payments to customers                  (274,870)  -
Free Cash Flow                                 (96,265)   201,112
International Game Technology PLC
Adjusted EBITDA and Free Cash Flow
Reconciliations of Non-GAAP Financial Measures
($ thousands)
                                               For the year ended
                                               December 31, 2016  December 31, 2015
                                                                  As Reported  Legacy IGT  Pro Forma
Net income (loss)                              264,207            (55,927)     (13,085)    (69,012)
Provision for (benefit from) income taxes      59,206             38,896       (4,126)     34,770
Non-operating expenses                         337,023            556,987      10,057      567,044
Amortization                                   492,021            410,264      6,107       416,371
Depreciation                                   390,448            369,564      28,960      398,524
Amortization of upfront payments to customers  116,980            107,812      3,556       111,368
Impairment loss                                37,744             12,497       6,100       18,597
Restructuring expense                          27,934             76,896       -           76,896
Stock-based compensation expense               26,346             36,067       5,951       42,018
Transaction expense, net                       2,590              34,529       18,782      53,311
Non-cash purchase accounting (excluding D&A)   795                23,099       -           23,099
Other                                          -                  -            30,956      30,956
Adjusted EBITDA                                1,755,294          1,610,684    93,258      1,703,942
Cash flows from operating activities           985,343            785,997      82,698      868,695
Capital expenditures                           (557,238)          (402,634)    (26,096)    (428,730)
Upfront payments to customers                  (665,260)          -            -           -
Free Cash Flow                                 (237,155)          383,363      56,602      439,965
International Game Technology PLC
Condensed Consolidated Statement of Operations
Reconciliation of Non-GAAP Financial Measures
($ and shares in thousands, except per share data)
                                                                       Adjustments
                                                            Q4 2016                           Impairment/    Transaction  Q4 2016
                                                            As         Purchase    Foreign    Restructuring  (Income)     As
                                                            Reported   Accounting  Exchange   Expense        Expense      Adjusted
Total revenue                                               1,321,216  244         -          -              -            1,321,460
Cost of services                                            641,649    (44,186)    -          -              -            597,463
Cost of sales                                               179,240    (29,845)    -          -              -            149,395
Selling, general and administrative                         236,547    (29,468)    -          -              -            207,079
Research and development                                    87,182     (277)       -          -              -            86,905
Restructuring expense                                       6,420      -           -          (6,420)        -            -
Impairment loss                                             31,162     (30,000)    -          (1,162)        -            -
Transaction expense, net                                    1,030      -           -          -              (1,030)      -
Total operating expenses                                    1,183,230  (133,776)   -          (7,582)        (1,030)      1,040,842
Operating income                                            137,986    134,020     -          7,582          1,030        280,618
Foreign exchange gain, net                                  195,587    -           (195,587)  -              -            -
Other income, net                                           23,359     11,672      -          -              -            35,031
Interest expense, net                                       (112,967)  2,084       -          -              -            (110,883)
Total non-operating income (expenses)                       105,979    13,756      (195,587)  -              -            (75,852)
Income before provision for income taxes                    243,965    147,776     (195,587)  7,582          1,030        204,766
(Benefit from) provision for income taxes (a)               (5,387)    51,662      (50,323)   13,230         356          9,538
Net income                                                  249,352    96,114      (145,264)  (5,648)        674          195,228
Less: Net income attributable to non-controlling interests  16,034     26          -          -              -            16,060
Net income attributable to IGT PLC                          233,318    96,088      (145,264)  (5,648)        674          179,168
Net income per common share - diluted                       1.15                                                          0.88
Weighted-average shares - diluted                           203,146                                                       203,146
(a) Provision for income taxes was determined based on the statutory tax rate in effect in the respective jurisdiction where the adjustment originated.
International Game Technology PLC
Condensed Consolidated Statement of Operations
Reconciliation of Non-GAAP Financial Measures
($ and shares in thousands, except per share data)
                                                                       Adjustments
                                                            Q4 2015                          Impairment/    Transaction      Q4 2015
                                                            As         Purchase    Foreign   Restructuring  and Refinancing  As
                                                            Reported   Accounting  Exchange  Expense        Expense          Adjusted
Total revenue                                               1,364,957  1,622       -         -              -                1,366,579
Cost of services                                            674,302    (44,064)    -         -              -                630,238
Cost of sales                                               180,021    (29,897)    -         -              -                150,124
Selling, general and administrative                         242,997    (34,295)    -         -              -                208,702
Research and development                                    84,552     (466)       -         -              -                84,086
Restructuring expense                                       35,326     -           -         (35,326)       -                -
Impairment loss                                             12,497     -           -         (12,497)       -                -
Transaction expense, net                                    3,701      -           -         -              (3,701)          -
Total operating expenses                                    1,233,396  (108,722)   -         (47,823)       (3,701)          1,073,150
Operating income                                            131,561    110,344     -         47,823         3,701            293,429
Interest expense, net                                       (114,569)  3,531       -         -              -                (111,038)
Other (expense) income, net                                 (2,074)    13,540      -         -              -                11,466
Foreign exchange gain, net                                  91,105     -           (91,105)  -              -                -
Total non-operating expenses                                (25,538)   17,071      (91,105)  -              -                (99,572)
Income before provision for income taxes                    106,023    127,415     (91,105)  47,823         3,701            193,857
Provision for income taxes (a)                              22,990     40,283      (22,895)  16,165         414              56,957
Net income                                                  83,033     87,132      (68,210)  31,658         3,287            136,900
Less: Net income attributable to non-controlling interests  9,533      25          -         -              -                9,558
Net income attributable to IGT PLC                          73,500     87,107      (68,210)  31,658         3,287            127,342
Net income per common share - diluted                       0.37                                                             0.63
Weighted-average shares - diluted                           200,731                                                          200,731
(a) Provision for income taxes was determined based on the statutory tax rate in effect in the respective jurisdiction where the adjustment originated.
International Game Technology PLC
Condensed Consolidated Statement of Operations
Reconciliation of Non-GAAP Financial Measures
($ and shares in thousands, except per share data)
                                                            Year to date   Adjustments                                        Year to date
                                                            December 2016                         Impairment/                 December 2016
                                                            As             Purchase    Foreign    Restructuring  Transaction  As
                                                            Reported       Accounting  Exchange   Expense        Expense      Adjusted
Total revenue                                               5,153,896      1,576       -          -              -            5,155,472
Cost of services                                            2,553,479      (181,552)   -          -              -            2,371,927
Cost of sales                                               582,358        (118,936)   -          -              -            463,422
Selling, general and administrative                         945,824        (134,325)   -          -              -            811,499
Research and development                                    343,531        (1,736)     -          -              -            341,795
Restructuring expense                                       27,934         -           -          (27,934)       -            -
Impairment loss                                             37,744         (30,000)    -          (7,744)        -            -
Transaction expense, net                                    2,590          -           -          -              (2,590)      -
Total operating expenses                                    4,493,460      (466,549)   -          (35,678)       (2,590)      3,988,643
Operating income                                            660,436        468,125     -          35,678         2,590        1,166,829
Foreign exchange gain, net                                  101,040        -           (101,040)  -              -            -
Other income, net                                           18,365         15,553      -          -              -            33,918
Interest expense, net                                       (456,428)      8,231       -          -              -            (448,197)
Total non-operating expenses                                (337,023)      23,784      (101,040)  -              -            (414,279)
Income before provision for income taxes                    323,413        491,909     (101,040)  35,678         2,590        752,550
Provision for income taxes (a)                              59,206         174,000     (26,892)   20,948         658          227,920
Net income                                                  264,207        317,909     (74,148)   14,730         1,932        524,630
Less: Net income attributable to non-controlling interests  52,870         102         -          -              -            52,972
Net income attributable to IGT PLC                          211,337        317,807     (74,148)   14,730         1,932        471,658
Net income per common share - diluted                       1.05                                                              2.33
Weighted-average shares - diluted                           202,214                                                           202,214
(a) Provision for income taxes was determined based on the statutory tax rate in effect in the respective jurisdiction where the adjustment originated.
International Game Technology PLC
Condensed Consolidated Statement of Operations
Reconciliation of Non-GAAP Financial Measures
($ and shares in thousands, except per share data)
                                                            Year to date   Adjustments                                           Year to date                Year to date
                                                            December 2015                        Impairment/    Transaction      December 2015               December 2015
                                                            As             Purchase    Foreign   Restructuring  and Refinancing  As             Pro Forma    Pro forma
                                                            Reported       Accounting  Exchange  Expense        Expense          Adjusted       Adjustments  and Adjusted
Total revenue                                               4,689,056      15,541      -         -              -                4,704,597      399,387      5,103,984
Cost of services                                            2,417,315      (148,750)   -         -              -                2,268,565      113,306      2,381,871
Cost of sales                                               520,343        (96,661)    -         -              -                423,682        63,355       487,037
Selling, general and administrative                         795,252        (101,319)   -         -              -                693,933        134,166      828,099
Research and development                                    277,401        (2,159)     -         -              -                275,242        62,760       338,002
Restructuring expense                                       76,896         -           -         (76,896)       -                -              -            -
Impairment loss                                             12,497         -           -         (12,497)       -                -              -            -
Transaction expense, net                                    49,396         -           -         -              (49,396)         -              -            -
Total operating expenses                                    4,149,100      (348,889)   -         (89,393)       (49,396)         3,661,422      373,587      4,035,009
Operating income                                            539,956        364,430     -         89,393         49,396           1,043,175      25,800       1,068,975
Interest expense, net                                       (440,303)      3,530       -         -              -                (436,773)
Other (expense) income, net                                 (122,295)      19,581      -         -              117,877          15,163
Foreign exchange gain, net                                  5,611          -           (5,611)   -              -                -
Total non-operating expenses                                (556,987)      23,111      (5,611)   -              117,877          (421,610)
(Loss) income before provision for income taxes             (17,031)       387,541     (5,611)   89,393         167,273          621,565
Provision for income taxes (a)                              38,896         132,298     (3,127)   29,165         41,529           238,761
Net (loss) income                                           (55,927)       255,243     (2,484)   60,228         125,744          382,804
Less: Net income attributable to non-controlling interests  19,647         102         -         -              -                19,749
Net (loss) income attributable to IGT PLC                   (75,574)       255,141     (2,484)   60,228         125,744          363,055
Net (loss) income per common share - diluted                (0.39)                                                               1.88
Weighted-average shares - diluted                           192,398                                                              193,559
(a) Provision for income taxes was determined based on the statutory tax rate in effect in the respective jurisdiction where the adjustment originated.
International Game Technology PLC Segment Performance (Pro forma)
Revenue Detail
($ millions)
                                                   INTERNATIONAL GAME TECHNOLOGY PLC           Quarter Change         YTD Change
                                                   2015              2016                      Percentage Constant FX Percentage Constant FX
                                                   Q4       YTD      Q4       YTD              Q4         Q4          YTD        YTD
Gaming                Total Revenue                762      2,725    730      2,667            -4.3%      -3.3%       -2.2%      -1.4%
             Gaming Services              547      2,036    492      1,976              -9.9%  -8.5%      -3.0%       -1.9%
                      Terminal            359      1,343    325      1,282              -9.6%  -8.6%      -4.6%       -3.7%
                      Social (DDI)        84       317      61       279                -27.6% -27.4%     -12.0%      -12.0%
                      Other               104      375      107      415                3.1%   6.8%       10.5%       13.1%
             Product Sales                216      690      237      691                10.0%  9.9%       0.2%        0.2%
                      Terminal            154      482      157      449                1.9%   1.9%       -6.7%       -6.8%
                      Other               62       208      81       242                30.0%  29.6%      16.4%       16.5%
Lottery               Total Revenue                521      2,046    514      2,170            -1.3%      -0.8%       6.1%       6.6%
             Lottery Services             484      1,930    494      2,086              1.9%   2.5%       8.0%        8.6%
                      FM/Concessions      430      1,717    444      1,829              3.1%   4.5%       6.5%        7.3%
                      LMA                 35       128      37       174                5.0%   5.0%       36.3%       36.3%
                      Other Services      19       85       13       82                 -30.8% -49.8%     -3.9%       -6.9%
             Product Sales                36       115      20       85                 -44.6% -44.1%     -26.5%      -26.2%
                      Terminal            15       41       1        11                 -96.5% -96.5%     -74.4%      -74.1%
                      Systems/Other       22       74       20       74                 -9.2%  -8.3%      0.2%        0.6%
Other                 Total Revenue                82       318      78       317              -4.7%      -4.1%       -0.2%      1.1%
                      Service Revenue              78       312      76       314              -2.8%      -2.7%       0.8%       1.8%
                      Product Sales                4        5        2        3                -43.5%     -32.1%      -53.2%     -42.2%
Consolidated          Revenue                      1,365    5,088    1,321    5,154            -3.2%      -2.4%       1.3%       2.0%
             Operating Income:
                      Segment Total       336      1,245    340      1,374              1.0%   1.5%       10.4%       10.9%
                      Purchase Accounting (110)    (372)    (134)    (468)              21.5%  21.6%      25.9%       26.0%
                      Corporate Support   (94)     (340)    (68)     (246)              -28.3% -26.3%     -27.7%      -26.2%
                      Total               132      533      138      660                4.9%   4.6%       23.9%       23.9%
                                                   NORTH AMERICA GAMING & INTERACTIVE          Quarter Change         YTD Change
                                                   2015              2016                      Percentage Constant FX Percentage Constant FX
                                                   Q4       YTD      Q4       YTD              Q4         Q4          YTD        YTD
Gaming                Total Revenue                378      1,413    368      1,373            -2.5%      -2.6%       -2.8%      -2.7%
             Gaming Services              263      1,025    230      975                -12.3% -12.2%     -4.8%       -4.8%
                      Terminal            137      571      126      525                -7.8%  -7.8%      -8.1%       -8.0%
                      Social (DDI)        84       317      61       279                -27.6% -27.4%     -12.0%      -12.0%
                      Other               42       137      44       171                3.2%   3.2%       25.3%       25.3%
             Product Sales                115      388      138      398                19.8%  19.5%      2.7%        2.8%
                      Terminal            80       267      85       250                6.4%   6.0%       -6.4%       -6.4%
                      Other               35       121      53       148                50.2%  50.2%      23.0%       23.2%
Total                 Revenue                      378      1,413    368      1,373            -2.5%      -2.6%       -2.8%      -2.7%
                      Operating Income             106      335      101      344              -5.3%      -8.6%       2.8%       -0.7%
                                                   NORTH AMERICA LOTTERY                       Quarter Change         YTD Change
                                                   2015              2016                      Percentage Constant FX Percentage Constant FX
                                                   Q4       YTD      Q4       YTD              Q4         Q4          YTD        YTD
Gaming                Total Revenue                37       149      35       146              -7.0%      -6.9%       -1.6%      -1.5%
             Gaming Services              37       148      35       146                -5.9%  -5.9%      -1.0%       -0.9%
                      Terminal            25       103      24       100                -5.6%  -5.6%      -2.8%       -2.8%
                      Social (DDI)        0        0        0        0                  0.0%   0.0%       0.0%        0.0%
                      Other               12       45       11       46                 -6.6%  -6.4%      3.2%        3.5%
             Product Sales                0        1        (0)      0                  0.0%   0.0%       -86.9%      -86.6%
                      Terminal            (0)      0        0        (0)                0.0%   0.0%       0.0%        0.0%
                      Other               0        1        (0)      0                  0.0%   0.0%       -84.4%      -84.1%
Lottery               Total Revenue                232      916      250      1,047            7.7%       7.7%        14.3%      14.3%
             Lottery Services             219      864      232      982                6.3%   6.3%       13.6%       13.6%
                      FM/Concessions      161      636      159      686                -1.1%  -1.1%      7.9%        7.9%
                      LMA                 35       128      37       174                5.0%   5.0%       36.3%       36.3%
                      Other Services      22       101      36       122                62.0%  62.0%      21.1%       21.1%
             Product Sales                13       52       17       65                 31.1%  31.2%      25.7%       25.8%
                      Terminal            0        5        0        10                 -28.0% -27.9%     79.0%       79.0%
                      Systems/Other       13       46       17       55                 32.3%  32.4%      19.5%       19.6%
Total                 Revenue                      269      1,065    284      1,194            5.7%       5.7%        12.1%      12.1%
                      Operating Income             43       195      65       300              53.8%      53.6%       54.4%      54.0%
                                                   INTERNATIONAL                               Quarter Change         YTD Change
                                                   2015              2016                      Percentage Constant FX Percentage Constant FX
                                                   Q4       YTD      Q4       YTD              Q4         Q4          YTD        YTD
Gaming                Total Revenue                148      502      144      473              -3.0%      0.5%        -5.8%      -2.0%
             Gaming Services              47       197      44       181                -5.5%  5.5%       -8.4%       1.3%
                      Terminal            13       59       12       51                 -1.6%  13.0%      -14.5%      2.4%
                      Social (DDI)        0        0        0        0                  0.0%   0.0%       0.0%        0.0%
                      Other               34       138      32       130                -7.0%  2.8%       -5.8%       0.8%
             Product Sales                101      305      99       293                -1.8%  -1.8%      -4.1%       -4.1%
                      Terminal            74       214      72       199                -2.7%  -2.5%      -6.9%       -7.0%
                      Other               27       91       28       93                 0.9%   0.0%       2.5%        2.5%
Lottery               Total Revenue                95       342      59       282              -38.2%     -37.5%      -17.4%     -14.4%
             Lottery Services             72       279      56       263                -22.2% -21.5%     -5.6%       -2.1%
                      FM/Concessions      55       206      51       206                -6.1%  0.4%       0.3%        6.1%
                      LMA                 0        0        0        0                  0.0%   0.0%       0.0%        0.0%
                      Other Services      17       73       4        57                 -74.6% -93.0%     -22.3%      -25.3%
             Product Sales                23       63       3        19                 -87.6% -86.8%     -69.3%      -68.7%
                      Terminal            15       36       0        1                  -97.8% -97.8%     -97.4%      -97.1%
                      Systems/Other       9        27       3        18                 -70.6% -68.6%     -32.5%      -31.6%
Other                 Total Revenue                22       78       18       72               -20.8%     -21.1%      -8.6%      -3.8%
                      Service Revenue              18       73       15       69               -15.9%     -18.8%      -5.2%      -0.9%
                      Product Sales                4        5        2        3                -43.5%     -32.1%      -53.2%     -42.2%
Total                 Revenue                      265      923      220      827              -17.1%     -14.9%      -10.3%     -6.8%
                      Operating Income             55       165      44       144              -20.1%     -13.3%      -12.7%     -1.7%
                                                   ITALY                                       Quarter Change         YTD Change
                                                   2015              2016                      Percentage Constant FX Percentage Constant FX
                                                   Q4       YTD      Q4       YTD              Q4         Q4          YTD        YTD
Gaming                Total Revenue                201      678      183      676              -8.8%      -7.6%       -0.3%      -0.1%
             Gaming Services              200      676      183      674                -8.8%  -7.6%      -0.2%       0.0%
                      Terminal            185      610      162      606                -12.1% -11.0%     -0.7%       -0.5%
                      Social (DDI)        0        0        0        0                  0.0%   0.0%       0.0%        0.0%
                      Other               16       66       20       68                 29.8%  32.7%      3.8%        4.5%
             Product Sales                0        2        0        1                  0.0%   0.0%       -30.8%      -30.7%
                      Terminal            0        1        0        0                  0.0%   0.0%       -98.6%      -98.6%
                      Other               0        1        0        1                  0.0%   0.0%       3.9%        4.1%
Lottery               Total Revenue                194      787      205      840              5.8%       7.0%        6.7%       6.8%
             Lottery Services             194      787      205      840                5.8%   7.0%       6.7%        6.8%
                      FM/Concessions      215      876      233      937                8.5%   9.8%       7.0%        7.1%
                      LMA                 0        0        0        0                  0.0%   0.0%       0.0%        0.0%
                      Other Services      (21)     (89)     (27)     (97)               33.7%  35.8%      9.5%        9.8%
             Product Sales                0        0        0        0                  0.0%   0.0%       0.0%        0.0%
                      Terminal            0        0        0        0                  0.0%   0.0%       0.0%        0.0%
                      Systems/Other       0        0        0        0                  0.0%   0.0%       0.0%        0.0%
Other                 Total Revenue                60       239      60       245              1.2%       2.2%        2.6%       2.7%
                      Service Revenue              60       239      60       245              1.2%       2.2%        2.6%       2.7%
                      Product Sales                0        0        0        0                0.0%       0.0%        0.0%       0.0%
Total                 Revenue                      455      1,704    449      1,761            -1.3%      -0.1%       3.4%       3.5%
                      Operating Income             132      550      130      586              -2.1%      -0.9%       6.5%       6.5%
Key Performance Indicators (KPIs)
Consolidated Key Performance Indicators (KPIs)
                                                  Fourth Quarter              Full Year
Periods Ended December 31                         2016     2015     % change  2016       2015       % change
Installed base (end of period)
Casino                                            34,653   34,568   0.2%      34,653     34,568     0.2%
VLT - Government Sponsored (ex-Italy)             15,150   15,491   -2.2%     15,150     15,491     -2.2%
VLT - Italy Supplier (B2B)                        8,840    8,291    6.6%      8,840      8,291      6.6%
Total installed base                              58,643   58,350   0.5%      58,643     58,350     0.5%
Yield (average revenue per unit per day - $0.00)  30.27    32.71    -7.5%     31.92      33.74      -5.4%
Additional Italian Network Details:
VLT - Operator (B2C)                              11,036   11,115   -0.7%     11,036     11,115     -0.7%
AWP                                               58,937   58,328   1.0%      58,937     58,328     1.0%
Machine units shipped
New/Expansion                                     3,073    2,640    16.4%     7,922      6,821      16.1%
Replacement                                       7,247    8,922    -18.8%    25,225     28,338     -11.0%
Total machines shipped                            10,320   11,562   -10.7%    33,147     35,159     -5.7%
Global lottery same-store revenue growth
Instants & draw games                                               2.3%                            3.8%
Multistate Jackpots                                                 -2.9%                           40.7%
Total lottery same-store revenue growth (ex-Italy)                  1.8%                            8.1%
Italy lottery revenue growth                                        7.4%                            7.0%
North America KPIs
                                                  Fourth Quarter              Full Year
Periods Ended December 31                         2016     2015     % change  2016       2015       % change
Installed base (end of period)
Casino                                            24,472   25,418   -3.7%     24,472     25,418     -3.7%
VLT - Government Sponsored                        14,878   15,241   -2.4%     14,878     15,241     -2.4%
Total installed base                              39,350   40,659   -3.2%     39,350     40,659     -3.2%
Machine units shipped
New/Expansion                                     1,733    2,191    -20.9%    5,929      4,389      35.1%
Replacement                                       3,686    4,406    -16.3%    13,842     16,993     -18.5%
Total machines shipped                            5,419    6,597    -17.9%    19,771     21,382     -7.5%
DoubleDown
Revenue ($ Thousands)                             61,702   83,598   -26.2%    280,010    316,999    -11.7%
Mobile penetration                                58%      53%      9.4%      55%        48%        15.4%
DAU (Daily Active Users) 1                        1,406    1,897    -25.9%    1,610      1,879      -14.3%
MAU (Monthly Active Users) 1                      3,369    4,411    -23.6%    3,839      4,526      -15.2%
Bookings per DAU ($0.00) 1                        $   0.48 $   0.47 2.0%      $     0.48 $     0.47 1.4%
Lottery same-store revenue growth
Instants & draw games                                               1.9%                            3.9%
Multistate Jackpots                                                 -1.5%                           48.7%
Total lottery same-store revenue growth                             1.5%                            9.7%
1As a single application with multiple games, active users equal unique users
International KPIs
                                                  Fourth Quarter              Full Year
Periods Ended December 31                         2016     2015     % change  2016       2015       % change
Installed base (end of period)
Casino                                            10,181   9,150    11.3%     10,181     9,150      11.3%
VLT - Government Sponsored                        272      250      8.8%      272        250        8.8%
Total installed base                              10,453   9,400    11.2%     10,453     9,400      11.2%
Machine units shipped
New/Expansion                                     1,340    449      198.4%    1,993      2,432      -18.1%
Replacement                                       3,561    4,516    -21.1%    11,383     11,345     0.3%
Total machines shipped                            4,901    4,965    -1.3%     13,376     13,777     -2.9%
Lottery same-store revenue growth
Instants & draw games                                               3.5%                            3.7%
Multistate Jackpots                                                 -9.1%                           -3.3%
Total lottery same-store revenue growth                             2.6%                            3.2%
Italy KPIs
                                                  Fourth Quarter              Full Year
Periods Ended December 31                         2016     2015     % change  2016       2015       % change
(In EUR  millions, except machines)
Lottery
Lotto wagers                                      2,141    1,855    15.4%     8,093      7,077      14.4%
10eLotto                                          1,239    1,147    7.9%      4,716      4,287      10.0%
Core                                              577      638      -9.6%     2,227      2,447      -9.0%
Late Numbers                                      326      70       367.0%    1,150      343        235.6%
Scratch & Win Wagers                              2,289    2,391    -4.3%     8,935      9,016      -0.9%
Italy lottery revenue growth                                        7.4%                            7.0%
Gaming
Installed base (end of period)
VLT - Operator (B2C)                              11,036   11,115   -0.7%     11,036     11,115     -0.7%
VLT - Supplier (B2B)                              8,840    8,291    6.6%      8,840      8,291      6.6%
AWP                                               58,937   58,328   1.0%      58,937     58,328     1.0%
Total Installed Base                              78,813   77,734   1.4%      78,813     77,734     1.4%
Wagers
VLT - Operator (B2C)                              1,428    1,440    -0.8%     5,460      5,433      0.5%
AWP                                               1,087    1,159    -6.2%     4,188      4,388      -4.6%
Interactive Wagers (Gaming)                       443      414      7.1%      1,659      1,672      -0.8%
Other
Sports Betting Wagers1                            250      236      5.9%      855        864        -1.1%
Sports Betting Payout (%)1                        85.9%    84.6%    1.3 pp    84.0%      83.7%      0.3 pp
1Includes Virtual Wagers and Pools & Horses

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/international-game-technology-plc-reports-fourth-quarter-and-full-year-2016-results-300421063.html

SOURCE International Game Technology PLC

https://rt.prnewswire.com/rt.gif?NewsItemId=LA30896&Transmission_Id=201703090645PR_NEWS_USPR_____LA30896&DateId=20170309



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