IGT Announces Fourth Quarter & 2019 Full Financial Results
International Game Technology /IGT/ has announced its fourth quarter and 2019 financial results for the year ending December 31, with Q4 for the UK-based company showing 1% drop in consolidated revenue, to $1.25 billion, year-on-year, with full 2019 revenue of $4.79 billion showing the same 1% fall compared to the 2018 number.
“We achieved the high end of our profit and cash flow expectations for 2019, led by strong results for our North America Gaming and Italy segments”
Marco Sala, CEO, IGT
Operating Income
Operating income for the quarter is $81 million, compared to $41 million for Q4 2018, with adjusted EBITDA up 5%, to $436 million, and for the 2019 financial year, operating income is $637 million, down 2%, while adjusted EBITDA of $1.71 billion show a decrease of 1% year-on-year.
The Q4 was characterized by strong growth in revenue from global gaming and sales of lottery products in North America, much like in Q1, with sports betting contribution in North America and Italy also higher, but with service revenue from both jurisdictions down due to reduced multi-state jackpot activity in the former and impact of taxes on gaming machines in the latter.
The 2019 financial year marked significant growth in global sales of gaming products, sports betting and commercial services in Italy, but global service revenue, was impacted by conclusion of contract for lottery in Illinois, higher taxes on gaming machines in Italy and exceptional jackpot-related activity in North America in the prior year.
Net Income
For the fourth quarter IGT’s net loss was $168 million, large amount of which due to the $99 million goodwill impairment charge, and adjusted net income came in at $63 million, up from $48 million in Q4 2018, mainly driven by higher operating income. Net loss for the quarter includes also $102 million of non-cash foreign exchange losses.
For the full year net loss was $19 million, and adjusted net income up to $221 million, compared to the $201 million for the year before, driven by reduced interest expense and lower income taxes.
“2019 marked an important inflection in cash flows for IGT. Having generated $1.1 billion in cash from operations, we invested in the business, paid down debt, and returned capital to shareholders. We enter 2020 in strong financial condition”
Timothy Rishton, Interim CFO, IGT
2020 Overview
The company also provided investors with its overview for 2020, estimating operating income of between $740 million and $790 million, calculated on a full-year EUR/USD exchange rate of 1.10, but also pointing out that the estimates do not reflect any potential impact from the outbreak of coronavirus.
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