IGT Takes Hit On Operating Income For Q3, 2019 Goals Still On Pace

• IGT is a gaming technology provider that serves gambling operators around the world as well as state lotteries in the U.S.
• Operating income fell from $200 million in Q3 of 2018 to $154 million in Q3 of 2019.
• The Chief Financial Officer of IGT says that the company is still on track to hit this year’s goals.

TALLAHASSEE, Fla. – IGT, a U.K.-based international provider of gambling technology, has released its third-quarter financial performance for 2019. While certain financial figures increased, other key figures may raise the eyebrows of investors.

According to the statement, the company’s consolidated revenue at a constant currency change amounted to $1.15 billion, up 3% from 2018’s Q3 performance. The increase was the result of increased sales in gaming products.

However, at constant currency change, IGT’s operating income was down 19% from last year’s third-quarter. In 2018, the firm saw $200 million in operating income during this time of the year as opposed to this year’s $154 million in operating income.

Still, despite the drop in operating income, executives of the company reassured investors that they are on pace to hit their 2019 goals.

“Our core businesses achieved significant momentum in the third quarter and year-to-year date periods,” said Marco Sala, chief executive officer of IGT. “Key performance indicators were solid in the quarter – gaming machine unit shipments increased 44%, while same-store revenue for draw games and instants rose 4%.”

“Our leading positions are rooted in our focus on player-driven performance, which was on display at recent lottery and gaming trade shows and should sustain our momentum going forward.”

Alberto Fornaro, the chief financial officer of IGT, also brought up some crucial financial figures that may comfort stakeholders of the company.

“IGT has generated free cash flow in excess of $450 million in the first nine months. This confirms the inflection we expected to achieve this year. We are well-positioned to achieve our 2019 strategic and financial goals.”

When looking at their North American segment, in particular, revenue increased 11% year-on-year to $257 million.

IGT has a share of the legal sports betting industry in the US through their partnership with William Hill and the Rhode Island Lottery. IGT provides sports wagering kiosks in that state as well as other gaming terminals.

Sports betting kiosks have become a necessity in states that legalize sports betting due to their ability to serve sportsbook guests in a faster and more efficient way.

IGT has lottery contracts with other U.S. states including Colorado, which recently legalized the activity.

There is an opportunity for the company to strike similar deals such as the one they have in Rhode Island, but based on their current sales in slot machines and other gambling terminals, the company looks to be in good shape either way.

News tags: Alberto Fornaro | IGT | Marco Sala | Rhode Island Lottery | William Hill