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IGT posts net loss of $2 million in 16Q3

International Game Technology (IGT) posted a net loss of US$2 million in the third quarter of 2016, reflecting $21 million in primary non-cash foreign exchange losses.

In a results release, the gaming and lottery supplier reported total revenue of $1.3 billion in 16Q3, up 5 percent year-on-year.

The company said the revenue growth reflected strong performance in North America lottery and Italy segments. Global lottery same-store revenue, excluding Italy, increased 6 percent during the third quarter while Italy lottery wagers increased 7 percent, said the company.

Product sales also increased in the quarter due to higher gaming machine unit demand in the North America and international segments as well as higher International systems sales.

The company said it shipped 8,980 gaming machines worldwide during the third quarter.

"Strong lottery performance across the world, a larger global installed base, and increased sales of gaming machines drove another quarter of solid revenue and profit expansion," said Marco Sala, CEO of IGT.

Wells Fargo, in a note on Tuesday said growth of lottery and signs of stabilization in the domestic slot business were encouraging.

The company reported adjusted EBITDA of $430 million, 4 percent higher than in the third quarter of 2015, representing the fourth consecutive quarter of year-over-year growth.  

"We achieved broad-based growth across regions in the third quarter and our financial condition is strong," said Alberto Fornaro, CFO of IGT. "Higher profitability enabled us to maintain our leverage ratio despite the significant interest and tax payments of the quarter. Based on our performance to date, we remain comfortable with our adjusted EBITDA outlook for the full year."

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