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IGT posts widened loss in 16Q1, seen as positive

Slot manufacturer and lottery company International Game Technology (IGT), reported a widened loss of $92.8 million in 16Q1, compared to $39.3 million in the first quarter of 2015.

The net loss reflected $162 million in “primarily non-cash foreign exchange losses,” said IGT in a company statement.

Revenue was up 51 percent year-on-year in the quarter, to $1.3 billion.

The company said its revenue growth was reflective of “strong lottery performance, particularly in North America and Italy.” Same-store lottery revenue increased 18 percent, excluding Italy, which IGT attributed to the big U.S. Powerball jackpot.

The results were seen as positive by analysts. “We remain Market Perform rated on IGT following better than expected 1Q results. Revenue was in-line and EBITDA was 5% above consensus expectations,” said Wells Fargo in a note on Friday.

IGT CEO Marco Sala was also positive on the results in the last quarter.

“We begin 2016 with a solid first quarter, evidenced by good revenue growth with all operating segments contributing to an improvement in profitability,” he said. “Gaming revenues were resilient despite challenging market conditions in North America, our largest gaming market. We remain focused on re-energizing gaming operations and strengthening our global leadership in lotteries.”

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