LONDON, Aug. 1, 2017 /PRNewswire/ -- International
Game Technology PLC ("IGT") (NYSE:IGT) today reported financial
results for the second quarter and six months ended June 30, 2017. Today, at 8:00 a.m. EDT / 1:00 p.m.
BST / 2:00 p.m. CEST,
management will host a conference call and webcast to present the
second quarter results; access details are provided below.
"Our second quarter results reflect strong key performance
indicators for both our global Lottery and Gaming businesses," said
Marco Sala, CEO of IGT.
"Lottery growth is benefiting from innovation and effective sales
and product marketing initiatives. In Gaming, the global installed
base was up and unit sales of gaming machines were higher, as were
average selling prices, all supported by strong demand for new
cabinets. Overall, we are pleased with the results of the first
half, and we expect a more robust product offer to support stronger
sales and profit levels in the second half of the year."
"We've made a lot of good progress on many levels so far this
year," said Alberto Fornaro, CFO
of IGT. "We are lowering our debt and we are enhancing cash
generation through disciplined asset and financial management. We
are maintaining our outlook for adjusted EBITDA and net debt for
the year, and have modestly reduced capital expenditures to account
for certain timing shifts."
Summary of Consolidated Second Quarter 2017 Financial
Results
|
Quarter Ended June
30,
|
Change
|
Constant
Currency
Change
|
|
2017
|
2016
|
(%)
|
(%)
|
(In $ millions,
unless otherwise noted)
|
|
|
|
|
Revenue
|
1,220
|
1,285
|
-5%
|
-5%
|
Operating
Income
|
192
|
171
|
12%
|
12%
|
Net (loss) income per
diluted share
|
(1.43)
|
0.36
|
NA
|
NA
|
Net debt
|
6,999
|
7,830
|
-11%
|
NA
|
Adjusted
EBITDA
|
424
|
443
|
-4%
|
-4%
|
Adjusted Operating
Income
|
264
|
290
|
-9%
|
-9%
|
Adjusted net income
per diluted share
|
0.15
|
0.43
|
-65%
|
NA
|
|
Note: Adjusted
EBITDA, adjusted operating income, 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. 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. Constant currency changes for 2017 are
calculated using the same foreign exchange rates as the
corresponding 2016 period. Management uses non-GAAP financial
measures to understand and compare operating results across
accounting periods, for internal budgeting and forecasting
purposes, and to evaluate the Company's financial performance.
Management believes these non-GAAP financial measures reflect the
Company's ongoing business in a manner that allows for meaningful
period-to-period comparisons and analysis of business trends. These
constant currency changes and non-GAAP financial measures should
however be viewed in addition to, and not as an alternative for,
the Company's reported results prepared in accordance with U.S.
GAAP.
Overview of Consolidated Second Quarter Results
Consolidated revenue was $1,220
million compared to $1,285
million in the second quarter of 2016. The constant currency
decline of 5% is mostly attributable to the new Lotto concession
dynamics and the sale of Double Down Interactive LLC
("DoubleDown"), which closed on June 1,
2017.
Global lottery same-store revenue, excluding Italy, grew 2.6% in the second quarter, on top
of strong North America jackpot
activity in the prior year period. Excluding multi-state jackpot
games, global lottery same-store revenue grew 4.9%. In Italy, late numbers activity was lower than
the elevated levels in the second quarter of 2016. Excluding late
numbers, Italy Lotto wagers increased 1%.
Gaming service revenue was primarily impacted by the sale of
DoubleDown. The global installed base continues to grow, rising
2,701 units from the prior-year period. Global gaming product
revenue increased 5% over the second quarter of 2016 driven by 25%
growth in terminal sales that was partially offset by lower systems
sales. The Company shipped 8,884 gaming machines worldwide during
the second quarter, led by strong replacement unit demand.
Operating income was $192 million,
compared to $171 million in the
second quarter of 2016, and Adjusted operating income was
$264 million compared to $290 million in the prior-year period. Adjusted
EBITDA was $424 million compared to
$443 million in the second quarter of
2016, reflecting the DoubleDown sale and the new Italy Lotto
concession terms that were partially offset by disciplined
operating expense management.
Interest expense was $116 million
compared to $118 million in the
prior-year period.
Net loss attributable to IGT was $290
million in the second quarter of 2017 inclusive of
$220 million of net foreign exchange
loss. On an adjusted basis, net income attributable to IGT was to
$31 million. The Company reported a
net loss per diluted share of $(1.43)
and earned $0.15 per diluted share on
an adjusted basis.
Cash from operations was $543
million in the first half of the year and capital
expenditures were $371 million. The
Company made the final $185 million
upfront installment payment for the new Lotto concession in
Italy during the second
quarter.
Cash and cash equivalents were $495
million as of June 30, 2017,
compared to $294 million as of
December 31, 2016. Net debt was
$6,999 million as of June 30, 2017.
Operating Segment Review
North America Gaming & Interactive
Revenue for
North America Gaming & Interactive was $310 million compared to $350 million in the second quarter of 2016.
Comparability is affected by the sale of DoubleDown.
Service revenue was $208 million
compared to $246 million in the
prior-year period, reflecting the DoubleDown sale and a
year-over-year decrease in the installed base. Product sales were
$102 million compared to $104 million in the second quarter of 2016, which
benefitted from a large system sale. Terminal sales improved 16%,
driven by higher average selling prices and increased new and
expansion unit shipments. The segment shipped 5,293 gaming machine
units in the quarter compared to 5,163 units in the prior-year
period.
Operating income for North America Gaming & Interactive was
$76 million compared to $88 million in the second quarter of 2016. The
decline is primarily due to lower revenues, largely from the sale
of DoubleDown, and partially offset by a decrease in operating
expenses.
North America Lottery
North America Lottery revenue was $293
million in the second quarter of 2017, compared to
$286 million reported in the second
quarter of 2016. The growth reflects solid same-store revenue
growth, as well as an incentive contribution from the New Jersey
Lottery. Excluding the New Jersey
contribution, revenue declined as same-store revenue growth was
offset by the exit of certain contracts and lower product
sales.
Service revenue was $278 million
compared to $267 million in the
second quarter of 2016. Same-store revenue growth of 2.2% was
supported by 5.6% growth in draw-based games and instant tickets,
offset by lower jackpot game activity and the exit of certain
low-margin contracts. Product sales were $15
million compared to $19
million in the second quarter of 2016, which included a
large sale in California.
Operating income for North America Lottery rose 29% to
$79 million reflecting the
contribution from the New Jersey
incentive and higher same-store revenues, partly offset by lower
product sales.
International
International revenue was $211
million compared to $207
million in the second quarter of 2016. On a constant
currency basis, International revenue increased 3%.
Lottery same-store revenue grew 3.6% on broad-based strength in
Latin America.
Gaming service revenue was $43
million compared to $46
million in the second quarter of 2016, down 4% at constant
currency due to lower interactive revenue. The installed base
continued to grow led by Greece
and South Africa.
Product sale revenue rose to $79
million from $73 million in
the prior-year period, driven by higher gaming terminal sales in
Latin America and EMEA, including
revenue recognized for gaming machines shipped in the first quarter
of 2017. The segment shipped a total of 3,591 gaming machine units
during the second quarter of 2017 compared to 2,989 units in the
prior-year period, led by strong replacement unit demand.
International operating income, at constant currency, increased
68% on higher gaming product sales and favorable mix; reduced
selling, general and administrative expenses; and lower bad debt
and impairment expenses.
Italy
Italy revenue was $404 million compared to $443 million in the second quarter of 2016. At
constant currency, revenue declined 8% as a result of the new Lotto
concession dynamics and a lower contribution from late numbers.
Total Lotto wagers in the quarter were €1,842 million compared
to €2,056 million in the prior-year period, reflecting
significantly lower late numbers activity. Excluding late numbers,
Lotto wagers increased 1% over the prior year period reflecting
continued strength in 10eLotto. Instant-ticket wagers were
essentially unchanged at €2,183 million on strong sales of
multiplier tickets despite fewer new ticket launches in
2017.
Machine gaming service revenue was in-line with the prior year
period, as increased vertical integration was offset by higher
gaming machine taxes. Sports betting revenue increased in the
second quarter of 2017 on higher wagers and improved payout.
Italy operating income was
$114 million compared to $161 million in the second quarter of 2016. The
decrease was mainly attributable to the new Lotto dynamics and
lower late number wagers.
Other Developments
The Company's board of directors declared a quarterly cash
dividend of $0.20 per ordinary share.
The dividend is payable on August 24,
2017 to holders of record as of the close of business on
August 11, 2017.
On July 26, 2017, the Company
issued a news release announcing a new term loan facility and
amendment to the revolving credit facilities. As communicated in
that release, those transactions, along with certain additional
actions, are expected to deliver approximately $60 million in annualized interest cost
savings.
Outlook
The Company is maintaining its outlook for adjusted EBITDA of
$1,600-$1,680 million, and the
expectation for net debt remains $6,950-$7,150 million for the full year 2017
period. The outlook for maintenance and growth capital expenditures
has been reduced by $50 million to
$575-$625
million.
Conference Call and Webcast
Today, at 8:00 a.m. EDT /
1:00 p.m. BST / 2:00 p.m. CEST, management will host a conference
call to present the second quarter 2017 results. Listeners may
access a live webcast of the conference call along with
accompanying slides under "News, Events & 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 1915
for participants in the United
Kingdom and +1 877 280 1254 for listeners outside the
United Kingdom. The conference
ID/confirmation code is 3185617. 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 3185617.
About IGT
IGT (NYSE: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 its consolidated subsidiaries (the "Company")
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 the Company 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 speak only as
of the date on which such statements are made and are subject to
various risks and uncertainties, many of which are outside the
Company'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 such statements. Factors that could
cause actual results to differ materially from those in the
forward-looking statements include (but are not limited to) the
factors and risks described in the Company's annual report on Form
20-F for the financial year ended December
31, 2016 and other documents filed from time to time with
the SEC, which are available on the SEC's website at www.sec.gov
and on the investor relations section of the Company's website at
www.IGT.com. Except as required under applicable law, the Company
does not assume any obligation to update these forward-looking
statements. You should carefully consider these factors and other
risks and uncertainties that affect the Company's business. 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 its 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
|
|
June
30,
|
|
2017
|
|
2016
|
|
|
|
|
Service
revenue
|
1,023,478
|
|
1,089,954
|
Product
sales
|
196,026
|
|
195,515
|
Total
revenue
|
1,219,504
|
|
1,285,469
|
|
|
|
|
Cost of
services
|
616,740
|
|
637,832
|
Cost of product
sales
|
138,362
|
|
144,640
|
Selling, general and
administrative
|
210,185
|
|
239,241
|
Research and
development
|
80,512
|
|
84,288
|
Restructuring
expense
|
11,463
|
|
6,438
|
Impairment
loss
|
-
|
|
2,352
|
Transaction income,
net
|
(29,630)
|
|
(43)
|
Total operating
expenses
|
1,027,632
|
|
1,114,748
|
|
|
|
|
Operating
income
|
191,872
|
|
170,721
|
|
|
|
|
Interest
income
|
2,460
|
|
2,754
|
Other expense,
net
|
(26,112)
|
|
(575)
|
Foreign exchange
(loss) gain, net
|
(220,386)
|
|
88,152
|
Interest
expense
|
(115,984)
|
|
(117,715)
|
Total
non-operating expenses
|
(360,022)
|
|
(27,384)
|
|
|
|
|
(Loss) income
before provision for income taxes
|
(168,150)
|
|
143,337
|
|
|
|
|
Provision for income
taxes
|
84,086
|
|
60,439
|
|
|
|
|
Net (loss)
income
|
(252,236)
|
|
82,898
|
|
|
|
|
Less: Net income
attributable to non-controlling interests
|
37,665
|
|
10,202
|
|
|
|
|
Net (loss) income
attributable to IGT PLC
|
(289,901)
|
|
72,696
|
|
|
|
|
|
|
|
|
Net (loss) income
attributable to IGT PLC per common share - basic
|
(1.43)
|
|
0.36
|
Net (loss) income
attributable to IGT PLC per common share - diluted
|
(1.43)
|
|
0.36
|
|
|
|
|
Weighted-average
shares - basic
|
202,946
|
|
201,229
|
Weighted-average
shares - diluted
|
202,946
|
|
201,565
|
International Game
Technology PLC
|
Condensed
Consolidated Statements of Operations
|
($ and shares
in thousands, except per share data)
|
Unaudited
|
|
|
|
|
|
For the six
months ended
|
|
June
30,
|
|
2017
|
|
2016
|
|
|
|
|
Service
revenue
|
2,050,423
|
|
2,225,075
|
Product
sales
|
321,665
|
|
341,955
|
Total
revenue
|
2,372,088
|
|
2,567,030
|
|
|
|
|
Cost of
services
|
1,241,034
|
|
1,286,595
|
Cost of product
sales
|
252,698
|
|
266,416
|
Selling, general and
administrative
|
410,709
|
|
466,767
|
Research and
development
|
163,133
|
|
168,995
|
Restructuring
expense
|
20,730
|
|
15,856
|
Impairment
loss
|
-
|
|
2,352
|
Transaction (income)
expense, net
|
(27,309)
|
|
1,431
|
Total operating
expenses
|
2,060,995
|
|
2,208,412
|
|
|
|
|
Operating
income
|
311,093
|
|
358,618
|
|
|
|
|
Interest
income
|
5,086
|
|
7,047
|
Other expense,
net
|
(23,445)
|
|
(7,901)
|
Foreign exchange
loss, net
|
(267,223)
|
|
(73,404)
|
Interest
expense
|
(230,783)
|
|
(236,130)
|
Total
non-operating expenses
|
(516,365)
|
|
(310,388)
|
|
|
|
|
(Loss) income
before provision for income taxes
|
(205,272)
|
|
48,230
|
|
|
|
|
Provision for income
taxes
|
73,756
|
|
51,781
|
|
|
|
|
Net
loss
|
(279,028)
|
|
(3,551)
|
|
|
|
|
Less: Net income
attributable to non-controlling interests
|
65,663
|
|
16,527
|
|
|
|
|
Net loss
attributable to IGT PLC
|
(344,691)
|
|
(20,078)
|
|
|
|
|
|
|
|
|
Net loss
attributable to IGT PLC per common share - basic
|
(1.70)
|
|
(0.10)
|
Net loss
attributable to IGT PLC per common share - diluted
|
(1.70)
|
|
(0.10)
|
|
|
|
|
Weighted-average
shares - basic
|
202,714
|
|
200,840
|
Weighted-average
shares - diluted
|
202,714
|
|
200,840
|
International Game
Technology PLC
|
Condensed
Consolidated Balance Sheets
|
($
thousands)
|
Unaudited
|
|
|
|
|
|
June 30,
|
|
December
31,
|
|
2017
|
|
2016
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
494,681
|
|
294,094
|
Restricted cash and
investments
|
229,858
|
|
247,222
|
Trade and other
receivables, net
|
824,527
|
|
947,237
|
Inventories
|
380,307
|
|
347,494
|
Other current
assets
|
381,877
|
|
424,727
|
Income taxes
receivable
|
21,474
|
|
28,792
|
Total
current assets
|
2,332,724
|
|
2,289,566
|
|
|
|
|
Systems, equipment
and other assets related to contracts, net
|
1,368,878
|
|
1,199,674
|
Property, plant and
equipment, net
|
196,529
|
|
357,841
|
Goodwill,
net
|
6,391,819
|
|
6,810,012
|
Intangible assets,
net
|
2,403,203
|
|
2,874,031
|
Other non-current
assets
|
1,507,464
|
|
1,497,662
|
Deferred income
taxes
|
32,872
|
|
31,376
|
Total
non-current assets
|
11,900,765
|
|
12,770,596
|
|
|
|
|
Total
assets
|
14,233,489
|
|
15,060,162
|
|
|
|
|
Liabilities,
redeemable non-controlling interests, and shareholders'
equity
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
1,180,035
|
|
1,216,079
|
Other current
liabilities
|
829,681
|
|
1,097,045
|
Current portion of
long-term debt
|
567,313
|
|
77
|
Income taxes
payable
|
178,945
|
|
28,590
|
Total
current liabilities
|
2,755,974
|
|
2,341,791
|
|
|
|
|
Long-term debt, less
current portion
|
6,926,234
|
|
7,863,085
|
Deferred income
taxes
|
654,635
|
|
761,924
|
Other non-current
liabilities
|
460,664
|
|
444,556
|
Total
non-current liabilities
|
8,041,533
|
|
9,069,565
|
|
|
|
|
Total
liabilities
|
10,797,507
|
|
11,411,356
|
|
|
|
|
Commitments and
contingencies
|
-
|
|
-
|
|
|
|
|
Redeemable
non-controlling interests and shareholders' equity
|
3,435,982
|
|
3,648,806
|
|
|
|
|
Total liabilities,
redeemable non-controlling interests, and shareholders'
equity
|
14,233,489
|
|
15,060,162
|
International Game
Technology PLC
|
Condensed
Consolidated Statements of Cash Flows
|
($
thousands)
|
Unaudited
|
|
|
|
|
|
|
|
For the six
months ended
|
|
|
June
30,
|
|
|
2017
|
|
2016
|
Operating
activities
|
|
|
|
|
Net loss
|
|
(279,028)
|
|
(3,551)
|
Adjustments
for:
|
|
|
|
|
Foreign exchange
loss, net
|
|
267,233
|
|
73,404
|
Amortization
|
|
218,427
|
|
253,074
|
Depreciation
|
|
185,906
|
|
198,881
|
Amortization of
upfront payments to customers
|
|
101,039
|
|
55,178
|
Loss on early
extinguishment of 7.500% Senior Secured Notes due 2019
|
|
25,725
|
|
-
|
Debt issuance cost
amortization
|
|
10,042
|
|
9,086
|
Stock-based
compensation expense
|
|
3,273
|
|
17,034
|
Non-cash gain on sale
of Double Down Interactive LLC
|
|
(51,233)
|
|
-
|
Other, net
|
|
4,040
|
|
21,598
|
Cash flows before
changes in operating assets and liabilities
|
|
485,424
|
|
624,704
|
Changes in operating
assets and liabilities, net of disposition:
|
|
|
|
|
Trade and other
receivables
|
|
146,763
|
|
35,133
|
Inventories
|
|
1,819
|
|
(6,271)
|
Accounts
payable
|
|
(105,477)
|
|
(68,596)
|
Other assets and
liabilities
|
|
14,695
|
|
(61,163)
|
Net cash flows
provided by operating activities
|
|
543,224
|
|
523,807
|
|
|
|
|
|
Investing
activities
|
|
|
|
|
Proceeds from sale of
Double Down Interactive LLC, net of cash divested
|
|
823,662
|
|
-
|
Proceeds from sale of
assets
|
|
162,758
|
|
49,394
|
Upfront payments to
customers
|
|
(185,368)
|
|
(390,390)
|
Capital
expenditures
|
|
(370,590)
|
|
(219,632)
|
Other
|
|
2,620
|
|
13,004
|
Net cash flows
provided by (used in) investing activities
|
|
433,082
|
|
(547,624)
|
|
|
|
|
|
Financing
activities
|
|
|
|
|
Principal payment on
7.500% Senior Secured Notes due 2019
|
|
(355,697)
|
|
-
|
Principal payments on
other long-term debt, net
|
|
(315,918)
|
|
(236,669)
|
Dividends
paid
|
|
(81,162)
|
|
(80,340)
|
Dividends paid -
non-controlling interests
|
|
(50,464)
|
|
(27,552)
|
Payments in
connection with the early extinguishment of 7.500% Senior Secured
Notes due 2019
|
|
(38,824)
|
|
-
|
Return of capital -
non-controlling interests
|
|
(35,907)
|
|
(35,407)
|
Net (payments of)
receipts from financial liabilities
|
|
(28,092)
|
|
4,510
|
Capital increase -
non-controlling interests
|
|
127,211
|
|
151,359
|
Other
|
|
(19,352)
|
|
(2,288)
|
Net cash flows
used in financing activities
|
|
(798,205)
|
|
(226,387)
|
|
|
|
|
|
Net increase
(decrease) in cash and cash equivalents
|
|
178,101
|
|
(250,204)
|
Effect of exchange
rate changes on cash
|
|
22,486
|
|
12,732
|
Cash and cash
equivalents at the beginning of the period
|
|
294,094
|
|
627,484
|
Cash and cash
equivalents at the end of the period
|
|
494,681
|
|
390,012
|
|
|
|
|
|
|
|
|
|
|
Supplemental
Cash Flow Information:
|
|
|
|
|
Interest
paid
|
|
(245,753)
|
|
(256,331)
|
Income taxes
paid
|
|
(21,492)
|
|
(38,742)
|
International Game
Technology PLC
|
Net
Debt
|
($
thousands)
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
December
31,
|
|
2017
|
|
2016
|
|
|
|
|
6.250% Senior Secured
Notes due 2022
|
1,476,196
|
|
1,472,150
|
6.500% Senior Secured
Notes due 2025
|
1,086,213
|
|
1,085,537
|
4.750% Senior Secured
Notes due 2023
|
958,878
|
|
884,917
|
4.125% Senior Secured
Notes due 2020
|
792,032
|
|
730,465
|
5.625% Senior Secured
Notes due 2020
|
594,847
|
|
593,954
|
4.750% Senior Secured
Notes due 2020
|
553,922
|
|
509,050
|
7.500% Senior Secured
Notes due 2019
|
149,420
|
|
521,894
|
5.500% Senior Secured
Notes due 2020
|
126,001
|
|
126,294
|
5.350% Senior Secured
Notes due 2023
|
61,135
|
|
61,187
|
6.625% Senior Secured
Notes due 2018
|
-
|
|
521,556
|
Senior Secured
Notes
|
5,798,644
|
|
6,507,004
|
|
|
|
|
Term Loan Facilities
due 2019
|
909,931
|
|
839,552
|
Revolving Credit
Facilities due 2021
|
217,659
|
|
516,529
|
Long-term debt,
less current portion
|
6,926,234
|
|
7,863,085
|
|
|
|
|
6.625% Senior Secured
Notes due 2018
|
567,313
|
|
-
|
Other
|
-
|
|
77
|
Current portion of
long-term debt
|
567,313
|
|
77
|
|
|
|
|
Total
debt
|
7,493,547
|
|
7,863,162
|
|
|
|
|
Cash and cash
equivalents
|
494,681
|
|
294,094
|
|
|
|
|
Net
debt
|
6,998,866
|
|
7,569,068
|
International Game Technology
PLC
|
Condensed
Consolidated Statement of Operations
|
Reconciliation of Non-GAAP Financial
Measures
|
($ and
shares in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments
|
|
|
|
|
Q2
2017
|
|
|
|
|
|
|
|
Transaction
|
|
Q2
2017
|
|
|
As
|
|
Purchase
|
|
Foreign
|
|
Restructuring
|
|
and
Refinancing
|
|
As
|
|
|
Reported
|
|
Accounting
|
|
Exchange
|
|
Expense
|
|
Expense,
net
|
|
Adjusted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
|
1,219,504
|
|
(180)
|
|
-
|
|
-
|
|
-
|
|
1,219,324
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
services
|
|
616,740
|
|
(38,510)
|
|
-
|
|
-
|
|
-
|
|
578,230
|
Cost of product
sales
|
|
138,362
|
|
(23,618)
|
|
-
|
|
-
|
|
-
|
|
114,744
|
Selling,
general and administrative
|
|
210,185
|
|
(28,169)
|
|
-
|
|
-
|
|
-
|
|
182,016
|
Research and
development
|
|
80,512
|
|
(210)
|
|
-
|
|
-
|
|
-
|
|
80,302
|
Restructuring
expense
|
|
11,463
|
|
-
|
|
-
|
|
(11,463)
|
|
-
|
|
-
|
Transaction
income, net
|
|
(29,630)
|
|
-
|
|
-
|
|
-
|
|
29,630
|
|
-
|
Total
operating expenses
|
|
1,027,632
|
|
(90,507)
|
|
-
|
|
(11,463)
|
|
29,630
|
|
955,292
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
191,872
|
|
90,327
|
|
-
|
|
11,463
|
|
(29,630)
|
|
264,032
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign
exchange loss, net
|
|
(220,386)
|
|
-
|
|
220,386
|
|
-
|
|
-
|
|
-
|
Other (expense)
income, net
|
|
(26,112)
|
|
1,617
|
|
-
|
|
-
|
|
25,725
|
|
1,230
|
Interest
expense, net
|
|
(113,524)
|
|
717
|
|
-
|
|
-
|
|
-
|
|
(112,807)
|
Total
non-operating expenses
|
|
(360,022)
|
|
2,334
|
|
220,386
|
|
-
|
|
25,725
|
|
(111,577)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss)
income before provision for income taxes
|
|
(168,150)
|
|
92,661
|
|
220,386
|
|
11,463
|
|
(3,905)
|
|
152,455
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for
income taxes (a)
|
|
84,086
|
|
32,003
|
|
50,428
|
|
2,962
|
|
(85,782)
|
|
83,697
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
|
(252,236)
|
|
60,658
|
|
169,958
|
|
8,501
|
|
81,877
|
|
68,758
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net
income attributable to non-controlling interests
|
|
37,665
|
|
26
|
|
-
|
|
-
|
|
-
|
|
37,691
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income attributable to IGT PLC
|
|
(289,901)
|
|
60,632
|
|
169,958
|
|
8,501
|
|
81,877
|
|
31,067
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income per common share - diluted
|
|
(1.43)
|
|
|
|
|
|
|
|
|
|
0.15
|
Weighted-average shares - diluted
(b)
|
|
202,946
|
|
|
|
|
|
|
|
|
|
203,076
|
|
|
(a)
|
Provision for income
taxes was determined based on the statutory tax rate in effect in
the respective jurisdiction where the adjustment
originated.
|
(b)
|
Weighted-average
shares – diluted, as adjusted, include shares that were excluded
from the as reported computation, due to the net loss as reported.
|
International Game Technology
PLC
|
Consolidated
Statement of Operations
|
Reconciliation of Non-GAAP Financial
Measures
|
($ and
shares in thousands, except share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments
|
|
|
|
|
Q2
2016
|
|
|
|
|
|
Impairment/
|
|
Transaction
|
|
Q2
2016
|
|
|
As
|
|
Purchase
|
|
Foreign
|
|
Restructuring
|
|
(Income)
|
|
As
|
|
|
Reported
|
|
Accounting
|
|
Exchange
|
|
Expense
|
|
Expense
|
|
Adjusted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
|
1,285,469
|
|
264
|
|
-
|
|
-
|
|
-
|
|
1,285,733
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
services
|
|
637,832
|
|
(45,340)
|
|
-
|
|
-
|
|
-
|
|
592,492
|
Cost of product
sales
|
|
144,640
|
|
(29,687)
|
|
-
|
|
-
|
|
-
|
|
114,953
|
Selling,
general and administrative
|
|
239,241
|
|
(34,857)
|
|
-
|
|
-
|
|
-
|
|
204,384
|
Research and
development
|
|
84,288
|
|
(496)
|
|
-
|
|
-
|
|
-
|
|
83,792
|
Restructuring
expense
|
|
6,438
|
|
-
|
|
-
|
|
(6,438)
|
|
-
|
|
-
|
Impairment
loss
|
|
2,352
|
|
-
|
|
-
|
|
(2,352)
|
|
-
|
|
-
|
Transaction
income, net
|
|
(43)
|
|
-
|
|
-
|
|
-
|
|
43
|
|
-
|
Total
operating expenses
|
|
1,114,748
|
|
(110,380)
|
|
-
|
|
(8,790)
|
|
43
|
|
995,621
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
170,721
|
|
110,644
|
|
-
|
|
8,790
|
|
(43)
|
|
290,112
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign
exchange gain, net
|
|
88,152
|
|
-
|
|
(88,152)
|
|
-
|
|
-
|
|
-
|
Other expense,
net
|
|
(575)
|
|
1,260
|
|
-
|
|
-
|
|
-
|
|
685
|
Interest
expense, net
|
|
(114,961)
|
|
2,036
|
|
-
|
|
-
|
|
-
|
|
(112,925)
|
Total
non-operating expenses
|
|
(27,384)
|
|
3,296
|
|
(88,152)
|
|
-
|
|
-
|
|
(112,240)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
(loss) before provision for income taxes
|
|
143,337
|
|
113,940
|
|
(88,152)
|
|
8,790
|
|
(43)
|
|
177,872
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for
(benefit from) income taxes (a)
|
|
60,439
|
|
41,330
|
|
(22,703)
|
|
2,054
|
|
(32)
|
|
81,088
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
82,898
|
|
72,610
|
|
(65,449)
|
|
6,736
|
|
(11)
|
|
96,784
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net
income attributable to non-controlling interests
|
|
10,202
|
|
25
|
|
-
|
|
-
|
|
-
|
|
10,227
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss) attributable to IGT PLC
|
|
72,696
|
|
72,585
|
|
(65,449)
|
|
6,736
|
|
(11)
|
|
86,557
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
per common share - diluted
|
|
0.36
|
|
|
|
|
|
|
|
|
|
0.43
|
Weighted-average shares -
diluted
|
|
201,565
|
|
|
|
|
|
|
|
|
|
201,565
|
|
|
(a)
|
Provision for
(benefit from) 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
|
|
|
June
2017
|
|
|
|
|
|
|
|
Transaction
|
|
June
2017
|
|
|
As
|
|
Purchase
|
|
Foreign
|
|
Restructuring
|
|
and
Refinancing
|
|
As
|
|
|
Reported
|
|
Accounting
|
|
Exchange
|
|
Expense
|
|
Expense,
net
|
|
Adjusted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
|
2,372,088
|
|
(358)
|
|
-
|
|
-
|
|
-
|
|
2,371,730
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
services
|
|
1,241,034
|
|
(80,740)
|
|
-
|
|
-
|
|
-
|
|
1,160,294
|
Cost of product
sales
|
|
252,698
|
|
(53,300)
|
|
-
|
|
-
|
|
-
|
|
199,398
|
Selling,
general and administrative
|
|
410,709
|
|
(63,097)
|
|
-
|
|
-
|
|
-
|
|
347,612
|
Research and
development
|
|
163,133
|
|
(411)
|
|
-
|
|
-
|
|
-
|
|
162,722
|
Restructuring
expense
|
|
20,730
|
|
-
|
|
-
|
|
(20,730)
|
|
-
|
|
-
|
Transaction
income, net
|
|
(27,309)
|
|
-
|
|
-
|
|
-
|
|
27,309
|
|
-
|
Total
operating expenses
|
|
2,060,995
|
|
(197,548)
|
|
-
|
|
(20,730)
|
|
27,309
|
|
1,870,026
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
311,093
|
|
197,190
|
|
-
|
|
20,730
|
|
(27,309)
|
|
501,704
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign
exchange loss, net
|
|
(267,223)
|
|
-
|
|
267,223
|
|
-
|
|
-
|
|
-
|
Other (expense)
income, net
|
|
(23,445)
|
|
1,651
|
|
-
|
|
-
|
|
25,725
|
|
3,931
|
Interest
expense, net
|
|
(225,697)
|
|
1,805
|
|
-
|
|
-
|
|
-
|
|
(223,892)
|
Total
non-operating expenses
|
|
(516,365)
|
|
3,456
|
|
267,223
|
|
-
|
|
25,725
|
|
(219,961)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss)
income before provision for income taxes
|
|
(205,272)
|
|
200,646
|
|
267,223
|
|
20,730
|
|
(1,584)
|
|
281,743
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for
income taxes (a)
|
|
73,756
|
|
70,232
|
|
61,096
|
|
6,134
|
|
(84,929)
|
|
126,289
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
|
(279,028)
|
|
130,414
|
|
206,127
|
|
14,596
|
|
83,345
|
|
155,454
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net
income attributable to non-controlling interests
|
|
65,663
|
|
51
|
|
-
|
|
-
|
|
-
|
|
65,714
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income attributable to IGT PLC
|
|
(344,691)
|
|
130,363
|
|
206,127
|
|
14,596
|
|
83,345
|
|
89,740
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income per common share - diluted
|
|
(1.70)
|
|
|
|
|
|
|
|
|
|
0.44
|
Weighted-average shares - diluted
(b)
|
|
202,714
|
|
|
|
|
|
|
|
|
|
203,066
|
|
|
(a)
|
Provision for income
taxes was determined based on the statutory tax rate in effect in
the respective jurisdiction where the adjustment
originated.
|
(b)
|
Weighted-average
shares – diluted, as adjusted, include shares that were excluded
from the as reported computation, due to the net loss as reported.
|
International Game Technology
PLC
|
Consolidated
Statement of Operations
|
Reconciliation of Non-GAAP Financial
Measures
|
($ and
shares in thousands, except share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year to
date
|
|
Adjustments
|
|
Year to
date
|
|
|
June
2016
|
|
|
|
|
|
Impairment/
|
|
|
|
June
2016
|
|
|
As
|
|
Purchase
|
|
Foreign
|
|
Restructuring
|
|
Transaction
|
|
As
|
|
|
Reported
|
|
Accounting
|
|
Exchange
|
|
Expense
|
|
Expense
|
|
Adjusted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
|
2,567,030
|
|
956
|
|
-
|
|
-
|
|
-
|
|
2,567,986
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
services
|
|
1,286,595
|
|
(91,144)
|
|
-
|
|
-
|
|
-
|
|
1,195,451
|
Cost of product
sales
|
|
266,416
|
|
(59,351)
|
|
-
|
|
-
|
|
-
|
|
207,065
|
Selling,
general and administrative
|
|
466,767
|
|
(69,603)
|
|
-
|
|
-
|
|
-
|
|
397,164
|
Research and
development
|
|
168,995
|
|
(994)
|
|
-
|
|
-
|
|
-
|
|
168,001
|
Restructuring
expense
|
|
15,856
|
|
-
|
|
-
|
|
(15,856)
|
|
-
|
|
-
|
Impairment
loss
|
|
2,352
|
|
-
|
|
-
|
|
(2,352)
|
|
-
|
|
-
|
Transaction
expense, net
|
|
1,431
|
|
-
|
|
-
|
|
-
|
|
(1,431)
|
|
-
|
Total
operating expenses
|
|
2,208,412
|
|
(221,092)
|
|
-
|
|
(18,208)
|
|
(1,431)
|
|
1,967,681
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
358,618
|
|
222,048
|
|
-
|
|
18,208
|
|
1,431
|
|
600,305
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign
exchange loss, net
|
|
(73,404)
|
|
-
|
|
73,404
|
|
-
|
|
-
|
|
-
|
Other expense,
net
|
|
(7,901)
|
|
4,092
|
|
-
|
|
-
|
|
-
|
|
(3,809)
|
Interest
expense, net
|
|
(229,083)
|
|
4,074
|
|
-
|
|
-
|
|
-
|
|
(225,009)
|
Total
non-operating expenses
|
|
(310,388)
|
|
8,166
|
|
73,404
|
|
-
|
|
-
|
|
(228,818)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
(loss) before provision for income taxes
|
|
48,230
|
|
230,214
|
|
73,404
|
|
18,208
|
|
1,431
|
|
371,487
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for
income taxes (a)
|
|
51,781
|
|
81,901
|
|
13,574
|
|
5,180
|
|
262
|
|
152,698
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
|
(3,551)
|
|
148,313
|
|
59,830
|
|
13,028
|
|
1,169
|
|
218,789
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net
income attributable to non-controlling interests
|
|
16,527
|
|
50
|
|
-
|
|
-
|
|
-
|
|
16,577
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income attributable to IGT PLC
|
|
(20,078)
|
|
148,263
|
|
59,830
|
|
13,028
|
|
1,169
|
|
202,212
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income per common share - diluted
|
|
(0.10)
|
|
|
|
|
|
|
|
|
|
1.00
|
Weighted-average shares - diluted
(b)
|
|
200,840
|
|
|
|
|
|
|
|
|
|
201,547
|
|
|
(a)
|
Provision for
(benefit from) income taxes was determined based on the statutory
tax rate in effect in the respective jurisdiction where the
adjustment originated.
|
(b)
|
Weighted-average
shares – diluted, as adjusted, include shares that were excluded
from the as reported computation, due to the net loss as reported.
|
International Game
Technology PLC
|
Adjusted EBITDA
and Free Cash Flow
|
Reconciliations of
Non-GAAP Financial Measures
|
($
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months
ended
|
|
|
June 30,
|
|
|
2017
|
|
2016
|
|
|
|
|
|
Net (loss)
income
|
|
(252,236)
|
|
82,898
|
Provision for income
taxes
|
|
84,086
|
|
60,439
|
Non-operating
expenses
|
|
360,022
|
|
27,384
|
Amortization
|
|
102,186
|
|
127,578
|
Depreciation
|
|
93,985
|
|
100,364
|
Amortization of
upfront payments to customers
|
|
51,640
|
|
27,769
|
Restructuring
expense
|
|
11,463
|
|
6,438
|
Stock-based
compensation expense
|
|
2,424
|
|
7,732
|
Bad debt
expense
|
|
11
|
|
-
|
Impairment
loss
|
|
-
|
|
2,352
|
Non-cash purchase
accounting (excluding D&A)
|
|
(204)
|
|
224
|
Transaction income,
net
|
|
(29,630)
|
|
(43)
|
Adjusted
EBITDA
|
|
423,747
|
|
443,135
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities
|
|
259,556
|
|
318,202
|
Capital
expenditures
|
|
(198,538)
|
|
(121,961)
|
Upfront payments to
customers
|
|
(185,368)
|
|
(390,390)
|
Free Cash
Flow
|
|
(124,350)
|
|
(194,149)
|
International Game
Technology PLC Segment Performance
|
Revenue
Detail
|
($
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTERNATIONAL GAME
TECHNOLOGY PLC
|
|
Quarter
Change
|
|
|
|
|
2016
|
2017
|
|
Percentage
|
Constant
FX
|
|
|
|
|
Q2
|
Q2
|
|
Q2
|
Q2
|
Gaming
|
|
Total
Revenue
|
663
|
630
|
|
-4.9%
|
-4.5%
|
|
|
|
|
|
|
|
|
|
Gaming
Services
|
495
|
454
|
|
-8.3%
|
-7.8%
|
|
|
Terminal
|
320
|
311
|
|
-2.7%
|
-2.4%
|
|
|
Social
(DDI)
|
72
|
43
|
|
-40.1%
|
-39.9%
|
|
|
Other
|
103
|
99
|
|
-3.5%
|
-2.0%
|
|
|
|
|
|
|
|
|
|
Product
Sales
|
168
|
177
|
|
5.1%
|
5.0%
|
|
|
Terminal
|
106
|
132
|
|
25.3%
|
25.0%
|
|
|
Other
|
63
|
44
|
|
-28.8%
|
-28.8%
|
|
|
|
|
|
|
|
|
|
Lottery
|
|
Total
Revenue
|
546
|
502
|
|
-8.1%
|
-7.6%
|
|
|
|
|
|
|
|
|
|
Lottery
Services
|
519
|
485
|
|
-6.6%
|
-6.2%
|
|
|
FM/Concessions
|
458
|
426
|
|
-7.0%
|
-6.6%
|
|
|
LMA
|
39
|
55
|
|
42.1%
|
42.1%
|
|
|
Other
Services
|
22
|
4
|
|
-82.8%
|
-79.9%
|
|
|
|
|
|
|
|
|
|
Product
Sales
|
27
|
18
|
|
-35.5%
|
-35.3%
|
|
|
Terminal
|
8
|
1
|
|
-85.8%
|
-85.8%
|
|
|
Systems/Other
|
19
|
16
|
|
-13.1%
|
-12.9%
|
|
|
|
|
|
|
|
|
|
Other
|
|
Total
Revenue
|
76
|
87
|
|
13.9%
|
14.5%
|
|
|
|
|
|
|
|
|
|
Service
Revenue
|
76
|
85
|
|
12.0%
|
12.4%
|
|
Product
Sales
|
0
|
2
|
|
586.2%
|
636.8%
|
|
|
|
|
|
|
|
|
|
Consolidated
|
|
Revenue
|
1,285
|
1,220
|
|
-5.1%
|
-4.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Income:
|
|
|
|
|
|
|
|
Segment
Total
|
338
|
315
|
|
-6.9%
|
-6.8%
|
|
|
Purchase
Accounting
|
(111)
|
(90)
|
|
-18.4%
|
-18.3%
|
|
|
Corporate
Support
|
(57)
|
(33)
|
|
-42.7%
|
-41.1%
|
|
|
Total
|
171
|
192
|
|
12.4%
|
12.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NORTH AMERICA
GAMING & INTERACTIVE
|
|
Quarter
Change
|
|
|
|
|
2016
|
2017
|
|
Percentage
|
Constant
FX
|
|
|
|
|
Q2
|
Q2
|
|
Q2
|
Q2
|
Gaming
|
|
Total
Revenue
|
350
|
310
|
|
-11.3%
|
-11.1%
|
|
|
|
|
|
|
|
|
|
Gaming
Services
|
246
|
208
|
|
-15.4%
|
-15.3%
|
|
|
Terminal
|
132
|
122
|
|
-7.5%
|
-7.4%
|
|
|
Social
(DDI)
|
72
|
43
|
|
-40.1%
|
-39.9%
|
|
|
Other
|
42
|
43
|
|
2.3%
|
2.4%
|
|
|
|
|
|
|
|
|
|
Product
Sales
|
104
|
102
|
|
-1.6%
|
-1.3%
|
|
|
Terminal
|
64
|
74
|
|
16.3%
|
16.8%
|
|
|
Other
|
40
|
28
|
|
-30.3%
|
-30.0%
|
|
|
|
|
|
|
|
|
|
Total
|
|
Revenue
|
350
|
310
|
|
-11.3%
|
-11.1%
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
88
|
76
|
|
-13.5%
|
-14.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NORTH AMERICA
LOTTERY
|
|
Quarter
Change
|
|
|
|
|
2016
|
2017
|
|
Percentage
|
Constant
FX
|
|
|
|
|
Q2
|
Q2
|
|
Q2
|
Q2
|
Gaming
|
|
Total
Revenue
|
37
|
37
|
|
-1.6%
|
-1.1%
|
|
|
|
|
|
|
|
|
|
Gaming
Services
|
37
|
37
|
|
-1.5%
|
-1.1%
|
|
|
Terminal
|
26
|
25
|
|
-1.1%
|
-1.1%
|
|
|
Social
(DDI)
|
0
|
0
|
|
0.0%
|
0.0%
|
|
|
Other
|
12
|
11
|
|
-2.4%
|
-1.0%
|
|
|
|
|
|
|
|
|
|
Product
Sales
|
0
|
0
|
|
-34.3%
|
-34.3%
|
|
|
Terminal
|
0
|
0
|
|
-100.0%
|
-100.0%
|
|
|
Other
|
0
|
0
|
|
-28.7%
|
-28.7%
|
|
|
|
|
|
|
|
|
|
Lottery
|
|
Total
Revenue
|
249
|
256
|
|
2.9%
|
2.9%
|
|
|
|
|
|
|
|
|
|
Lottery
Services
|
230
|
242
|
|
5.1%
|
5.1%
|
|
|
FM/Concessions
|
163
|
158
|
|
-3.0%
|
-3.0%
|
|
|
LMA
|
39
|
55
|
|
42.1%
|
42.1%
|
|
|
Other
Services
|
28
|
28
|
|
0.5%
|
0.5%
|
|
|
|
|
|
|
|
|
|
Product
Sales
|
19
|
15
|
|
-22.9%
|
-22.8%
|
|
|
Terminal
|
8
|
1
|
|
-85.7%
|
-85.7%
|
|
|
Systems/Other
|
11
|
14
|
|
20.2%
|
20.3%
|
|
|
|
|
|
|
|
|
|
Total
|
|
Revenue
|
286
|
293
|
|
2.3%
|
2.4%
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
61
|
79
|
|
29.2%
|
28.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTERNATIONAL
|
|
Quarter
Change
|
|
|
|
|
2016
|
2017
|
|
Percentage
|
Constant
FX
|
|
|
|
|
Q2
|
Q2
|
|
Q2
|
Q2
|
Gaming
|
|
Total
Revenue
|
110
|
117
|
|
6.0%
|
6.7%
|
|
|
|
|
|
|
|
|
|
Gaming
Services
|
46
|
43
|
|
-7.0%
|
-4.2%
|
|
|
Terminal
|
13
|
13
|
|
0.7%
|
1.3%
|
|
|
Social
(DDI)
|
0
|
0
|
|
0.0%
|
0.0%
|
|
|
Other
|
34
|
30
|
|
-10.0%
|
-6.2%
|
|
|
|
|
|
|
|
|
|
Product
Sales
|
64
|
74
|
|
15.4%
|
14.5%
|
|
|
Terminal
|
42
|
58
|
|
38.5%
|
37.3%
|
|
|
Other
|
22
|
16
|
|
-27.6%
|
-27.9%
|
|
|
|
|
|
|
|
|
|
Lottery
|
|
Total
Revenue
|
79
|
75
|
|
-5.1%
|
-2.6%
|
|
|
|
|
|
|
|
|
|
Lottery
Services
|
70
|
72
|
|
1.8%
|
4.6%
|
|
|
FM/Concessions
|
53
|
49
|
|
-7.7%
|
-5.5%
|
|
|
LMA
|
0
|
0
|
|
0.0%
|
0.0%
|
|
|
Other
Services
|
18
|
23
|
|
30.5%
|
35.0%
|
|
|
|
|
|
|
|
|
|
Product
Sales
|
8
|
3
|
|
-65.0%
|
-64.6%
|
|
|
Terminal
|
1
|
0
|
|
-87.0%
|
-87.0%
|
|
|
Systems/Other
|
8
|
3
|
|
-63.2%
|
-62.7%
|
|
|
|
|
|
|
|
|
|
Other
|
|
Total
Revenue
|
18
|
20
|
|
7.7%
|
7.6%
|
|
|
|
|
|
|
|
|
|
Service
Revenue
|
18
|
18
|
|
-0.7%
|
-1.6%
|
|
Product
Sales
|
0
|
2
|
|
586.2%
|
636.8%
|
|
|
|
|
|
|
|
|
|
Total
|
|
Revenue
|
207
|
211
|
|
2.0%
|
3.3%
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
28
|
45
|
|
63.3%
|
68.4%
|
|
|
|
|
|
|
ITALY
|
|
Quarter
Change
|
|
|
|
|
2016
|
2017
|
|
Percentage
|
Constant
FX
|
|
|
|
|
Q2
|
Q2
|
|
Q2
|
Q2
|
Gaming
|
|
Total
Revenue
|
166
|
165
|
|
-0.4%
|
0.1%
|
|
|
|
|
|
|
|
|
|
Gaming
Services
|
166
|
165
|
|
-0.5%
|
-0.1%
|
|
|
Terminal
|
150
|
150
|
|
0.2%
|
0.7%
|
|
|
Social
(DDI)
|
0
|
0
|
|
0.0%
|
0.0%
|
|
|
Other
|
16
|
14
|
|
-7.8%
|
-7.2%
|
|
|
|
|
|
|
|
|
|
Product
Sales
|
0
|
1
|
|
92.3%
|
96.0%
|
|
|
Terminal
|
0
|
0
|
|
0.0%
|
0.0%
|
|
|
Other
|
0
|
0
|
|
34.7%
|
39.4%
|
|
|
|
|
|
|
|
|
|
Lottery
|
|
Total
Revenue
|
219
|
171
|
|
-21.7%
|
-21.5%
|
|
|
|
|
|
|
|
|
|
Lottery
Services
|
219
|
171
|
|
-21.7%
|
-21.5%
|
|
|
FM/Concessions
|
242
|
219
|
|
-9.6%
|
-9.4%
|
|
|
LMA
|
0
|
0
|
|
0.0%
|
0.0%
|
|
|
Other
Services
|
(23)
|
(48)
|
|
102.7%
|
103.2%
|
|
|
|
|
|
|
|
|
|
Product
Sales
|
0
|
0
|
|
0.0%
|
0.0%
|
|
|
Terminal
|
0
|
0
|
|
0.0%
|
0.0%
|
|
|
Systems/Other
|
0
|
0
|
|
0.0%
|
0.0%
|
|
|
|
|
|
|
|
|
|
Other
|
|
Total
Revenue
|
58
|
67
|
|
15.9%
|
16.8%
|
|
|
|
|
|
|
|
|
|
Service
Revenue
|
58
|
67
|
|
15.9%
|
16.8%
|
|
Product
Sales
|
0
|
0
|
|
0.0%
|
0.0%
|
|
|
|
|
|
|
|
|
|
Total
|
|
Revenue
|
443
|
404
|
|
-8.8%
|
-8.4%
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
161
|
114
|
|
-29.2%
|
-28.9%
|
Consolidated Key
Performance Indicators (KPIs)
|
|
Second
Quarter
|
Period Ended June
30
|
2017
|
2016
|
%
change
|
|
|
|
|
Installed base
(end of period)
|
|
|
|
Casino
|
34,853
|
33,399
|
4.4%
|
VLT -
Government Sponsored (ex-Italy)
|
16,192
|
15,605
|
3.8%
|
VLT -
Italy Supplier (B2B)
|
8,819
|
8,159
|
8.1%
|
Total
installed base
|
59,864
|
57,163
|
4.7%
|
Yield
(average revenue per unit per day - $0.00)
|
29.63
|
32.57
|
-9.0%
|
|
|
|
|
Additional Italian Network Details:
|
|
|
|
VLT -
Operator (B2C)
|
10,907
|
10,995
|
-0.8%
|
AWP
|
59,070
|
56,300
|
4.9%
|
|
|
|
|
Machine units
shipped
|
|
|
|
New/Expansion
|
1,849
|
1,447
|
27.8%
|
Replacement
|
7,035
|
6,705
|
4.9%
|
Total
machines shipped
|
8,884
|
8,152
|
9.0%
|
|
|
|
|
Global lottery
same-store revenue growth
|
|
|
|
Instants
& draw games
|
|
|
4.9%
|
Multistate Jackpots
|
|
|
-14.1%
|
Total
lottery same-store revenue growth (ex-Italy)
|
|
|
2.6%
|
Italy
lottery revenue growth
|
|
|
-21.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America
KPIs
|
|
Second
Quarter
|
Period Ended June
30
|
2017
|
2016
|
%
change
|
|
|
|
|
Installed base
(end of period)
|
|
|
|
Casino
|
23,649
|
24,171
|
-2.2%
|
VLT - Government Sponsored
|
15,267
|
15,355
|
-0.6%
|
Total
installed base
|
38,916
|
39,526
|
-1.5%
|
|
|
|
|
Machine units
shipped
|
|
|
|
New/Expansion
|
1,408
|
1,277
|
10.3%
|
Replacement
|
3,885
|
3,886
|
0.0%
|
Total
machines shipped
|
5,293
|
5,163
|
2.5%
|
|
|
|
|
Lottery same-store
revenue growth
|
|
|
|
Instants
& draw games
|
|
|
5.6%
|
Multistate Jackpots
|
|
|
-18.2%
|
Total
lottery same-store revenue growth
|
|
|
2.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
KPIs
|
|
Second
Quarter
|
Period Ended June
30
|
2017
|
2016
|
%
change
|
|
|
|
|
Installed base
(end of period)
|
|
|
|
Casino
|
11,204
|
9,228
|
21.4%
|
VLT - Government Sponsored
|
925
|
250
|
270.0%
|
Total
installed base
|
12,129
|
9,478
|
28.0%
|
|
|
|
|
Machine units
shipped
|
|
|
|
New/Expansion
|
441
|
170
|
159.4%
|
Replacement
|
3,150
|
2,819
|
11.7%
|
Total
machines shipped
|
3,591
|
2,989
|
20.1%
|
|
|
|
|
Lottery same-store
revenue growth
|
|
|
|
Instants
& draw games
|
|
|
2.8%
|
Multistate Jackpots
|
|
|
16.8%
|
Total
lottery same-store revenue growth
|
|
|
3.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Italy
KPIs
|
|
Second
Quarter
|
Period Ended June
30
|
2017
|
2016
|
%
change
|
(In € millions,
except machines)
|
|
|
|
Lottery
|
|
|
|
Lotto
wagers
|
1,842
|
2,056
|
-10.4%
|
10eLotto
|
1,269
|
1,191
|
6.6%
|
Core
|
484
|
542
|
-10.6%
|
Late
Numbers
|
88
|
324
|
-72.8%
|
|
|
|
|
Scratch & Win
Wagers
|
2,183
|
2,200
|
-0.8%
|
|
|
|
|
Italy lottery
revenue growth
|
|
|
-21.5%
|
|
|
|
|
Gaming
|
|
|
|
Installed base
(end of period)
|
|
|
|
VLT -
Operator (B2C)
|
10,907
|
10,995
|
-0.8%
|
VLT -
Supplier (B2B)
|
8,819
|
8,159
|
8.1%
|
AWP
|
59,070
|
56,300
|
4.9%
|
Total
Installed Base
|
78,796
|
75,454
|
4.4%
|
|
|
|
|
Wagers
|
|
|
|
VLT -
Operator (B2C)
|
1,370
|
1,324
|
3.5%
|
AWP
|
960
|
1,034
|
-7.2%
|
Interactive Wagers (Gaming)
|
413
|
398
|
3.8%
|
|
|
|
|
Other
|
|
|
|
Sports
Betting Wagers1
|
226
|
206
|
9.5%
|
Sports
Betting Payout (%)1
|
82.3%
|
86.5%
|
-4.2
pp
|
|
1Includes Virtual Wagers and Pools
& Horses
|
View original content with
multimedia:http://www.prnewswire.com/news-releases/international-game-technology-plc-reports-second-quarter-2017-results-300497240.html
SOURCE International Game Technology PLC