LONDON, March 3, 2020 /PRNewswire/ -- International Game
Technology PLC ("IGT") (NYSE:IGT) today reported financial results
for the fourth quarter and full year ended December 31, 2019. Today, at 8:00 a.m. EST, management will host a conference
call and webcast to present the results; access details are
provided below.
"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," said
Marco Sala, CEO of IGT. "In
the full year, we grew global gaming product sales by more than 20%
thanks to higher unit shipments and the success of our new games.
Global lottery same-store revenue also rose. We are closely
monitoring the impact of the Coronavirus outbreak. Apart from this,
solid operational performance across products and regions should
support continued momentum in 2020."
"2019 marked an important inflection in cash flows for IGT,"
said Timothy Rishton, Interim CFO
of 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."
Overview of Consolidated Fourth Quarter and Full Year 2019
Results
|
|
|
|
Constant
|
|
Quarter
Ended
|
Y/Y
|
Currency
|
|
December
31,
|
Change
|
Change
|
|
2019
|
2018
|
(%)
|
(%)
|
|
|
|
|
|
(In $ millions,
unless otherwise noted)
|
|
|
|
|
Revenue
|
1,253
|
1,266
|
-1%
|
0%
|
Operating
income
|
81
|
41
|
99%
|
112%
|
Net income/(loss) per
diluted share
|
($0.82)
|
($0.50)
|
-64%
|
|
Adjusted
EBITDA
|
436
|
416
|
5%
|
6%
|
Adjusted net income
per diluted share
|
$0.31
|
$0.24
|
29%
|
|
Net
debt
|
7,382
|
7,761
|
-5%
|
|
|
|
|
Constant
|
|
Year Ended
|
Y/Y
|
Currency
|
|
December
31,
|
Change
|
Change
|
|
2019
|
2018
|
(%)
|
(%)
|
|
|
|
|
|
(In $ millions,
unless otherwise noted)
|
|
|
|
|
Revenue
|
4,786
|
4,831
|
-1%
|
2%
|
Operating
income
|
637
|
647
|
-2%
|
3%
|
Net income/(loss) per
diluted share
|
($0.09)
|
($0.10)
|
11%
|
|
Adjusted
EBITDA
|
1,713
|
1,737
|
-1%
|
2%
|
Adjusted net income
per diluted share
|
$1.08
|
$0.99
|
10%
|
|
|
Note: Adjusted EBITDA
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.
|
Overview of Consolidated Fourth Quarter 2019
Results
Consolidated revenue of $1.25
billion, down 1% from the prior year as reported, in line at
constant currency
- Strong growth in global gaming and North America lottery product sales
- Higher sports betting contribution from Italy and North
America
- Lower service revenues from reduced North American multistate
jackpot activity and impact of Italy gaming machine taxes
Operating income of $81 million,
up from $41 million in the prior
year
- Reduced goodwill impairment
- Beneficial product sales mix
- Lower bad debt expense
Adjusted EBITDA of $436 million,
up 5% from the prior year period as reported, up 6% at constant
currency
- Higher profit contributions from North America Gaming &
Interactive, International, and Italy segments
- North America Lottery impacted by lower jackpot activity
Interest expense, net was $101
million, down 3% from the prior-year quarter
Income taxes of $13 million, down
from $30 million on lower pre-tax
income
Net loss attributable to IGT was $168
million; adjusted net income attributable to IGT of
$63 million, up from $48 million in the prior year
- Net loss includes non-cash, non-deductible goodwill impairment
charge of $99 million, reducing the
carrying value of the International segment, in addition to
$102 million of non-cash foreign
exchange losses
- Adjusted net income increase driven by higher operating
income
Net loss per diluted share of $0.82; adjusted net income per diluted share of
$0.31 versus $0.24 in the prior year
Net debt of $7.38 billion, an
improvement of 5% from $7.76 billion
at December 31, 2018
Overview of Consolidated Full Year 2019 Results
Consolidated revenue was $4.79
billion, down 1% from 2018 as reported, up 2% at constant
currency
- Significant growth in global gaming product sales, sports
betting, and Italy commercial
services
- Global service revenue impacted by higher gaming machine taxes
in Italy, Illinois lottery contract conclusion, and
exceptional North American jackpot activity in the prior year
Operating income of $637 million,
down 2% from the prior year as reported, up 3% at constant
currency
- Reduced goodwill impairment
Adjusted EBITDA of $1.71 billion,
down 1% as reported, up 2% at constant currency
- Strong profit growth from North America Gaming &
Interactive and Italy at constant
currency
Interest expense, net was $410
million, down from $417
million in the prior year
Income taxes of $173 million, down
from $189 million on lower pre-tax
income
Net loss attributable to IGT was $19
million; adjusted net income attributable to IGT of
$221 million, up from $201 million in the prior year
- Net loss includes non-cash, non-deductible goodwill impairment
charge of $99 million, reducing the
carrying value of the International segment
- Adjusted net income increase driven by reduced interest expense
and lower income taxes
Net loss per diluted share of $0.09; adjusted net income per diluted share of
$1.08 versus $0.99 in the prior year
Capital expenditures of $442
million compared to $533
million in the prior year
Cash from operations totals $1.1
billion, up significantly from $30
million in the prior year, which included $878 million in Italy upfront license fees
Cash and cash equivalents were $663
million as of December 31,
2019, compared to $251 million
as of December 31, 2018
Fourth Quarter Operating Segment Review
North America Gaming & Interactive
Select Financial
Data
|
|
|
As
|
Constant
|
|
Key Performance
Indicators
|
|
|
%
|
Period Ended
December 31
|
Q4
'19
|
Q4
'18
|
Reported
|
FX
|
|
Period Ended
December 31
|
Q4
'19
|
Q4
'18
|
Change
|
Gaming
|
|
Total
revenue
|
282
|
273
|
3%
|
3%
|
|
Installed base
units (end of period)
|
|
|
|
|
Gaming
services
|
139
|
147
|
-6%
|
-6%
|
|
Casino
|
20,493
|
23,108
|
-11.3%
|
|
|
Terminal
|
98
|
101
|
-3%
|
-3%
|
|
|
|
|
|
|
|
Other
|
41
|
46
|
-11%
|
-11%
|
|
Machine units
shipped
|
|
|
|
|
Product
sales
|
143
|
126
|
13%
|
13%
|
|
New/expansion
|
1,405
|
247
|
468.8%
|
|
|
Terminal
|
111
|
96
|
16%
|
16%
|
|
Replacement
|
5,986
|
6,485
|
-7.7%
|
|
|
Other
|
32
|
30
|
5%
|
5%
|
|
Total
machines shipped
|
7,391
|
6,732
|
9.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
Total
revenue
|
18
|
2
|
NM
|
NM
|
|
|
|
|
|
|
Service
revenue
|
4
|
2
|
140%
|
140%
|
|
|
|
|
|
|
Product
revenue
|
14
|
0
|
NM
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
Revenue
|
300
|
275
|
9%
|
9%
|
|
|
|
|
|
|
Operating
income
|
68
|
51
|
33%
|
32%
|
|
|
|
|
|
Revenue up 9% to $300 million
- Gaming product sales revenue of $143
million, up 13% over the prior year
-
- Strong 16% increase in terminal revenue resulting from 10%
increase in gaming machine units shipped and higher average selling
prices
- Increase in other product sales from higher software and
systems revenue
- Gaming service revenue of $139
million, compared to $147
million in the prior-year period
-
- Installed base reflects removals in Oklahoma; yields higher
- Impact of multi-year poker contracts executed in prior
periods
- Other product revenue driven by software license
Operating income of $68 million,
up 33% over the prior year
- Strong terminal, software, and systems sales
North America Lottery
Select Financial
Data
|
|
|
As
|
Constant
|
|
Key Performance
Indicators
|
|
|
%
|
Period Ended
December 31
|
Q4
'19
|
Q4
'18
|
Reported
|
FX
|
|
Period Ended
December 31
|
Q4
'19
|
Q4
'18
|
Change
|
Gaming
|
|
Total
revenue
|
37
|
40
|
-9%
|
-9%
|
|
Installed base
units (end of period)
|
|
|
|
|
Gaming
services
|
37
|
40
|
-9%
|
-9%
|
|
VLT - Government sponsored
|
13,553
|
14,939
|
-9.3%
|
|
|
Terminal
|
23
|
25
|
-5%
|
-5%
|
|
|
|
|
|
|
|
Other
|
13
|
16
|
-14%
|
-15%
|
|
Lottery same-store
revenue growth
|
|
|
|
|
Product
sales
|
0
|
0
|
0%
|
0%
|
|
Instant
ticket & draw games
|
|
|
3.8%
|
|
|
|
|
|
|
|
|
|
Multistate jackpots
|
|
|
-62.8%
|
Lottery
|
|
Total
revenue
|
240
|
268
|
-10%
|
-10%
|
|
Total
lottery same-store revenue growth
|
|
|
-11.1%
|
|
Lottery
services
|
222
|
255
|
-13%
|
-13%
|
|
|
|
|
|
|
|
FMC
|
204
|
226
|
-10%
|
-10%
|
|
|
|
|
|
|
|
Instant ticket
& draw games
|
168
|
193
|
-13%
|
-13%
|
|
|
|
|
|
|
|
Other
services
|
37
|
33
|
10%
|
10%
|
|
|
|
|
|
|
|
LMA
|
17
|
29
|
-41%
|
-41%
|
|
|
|
|
|
|
Product
sales
|
19
|
13
|
46%
|
46%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
Total
revenue
|
2
|
0
|
NM
|
NM
|
|
|
|
|
|
|
Service
revenue
|
2
|
0
|
NM
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
Revenue
|
279
|
309
|
-9%
|
-9%
|
|
|
|
|
|
|
Operating
income
|
51
|
79
|
-35%
|
-35%
|
|
|
|
|
|
Revenue of $279 million compared
to $309 million in the prior-year
period
- Lottery service revenue of $222
million, compared to $255
million in the prior year
-
- Instant ticket & draw game same-store revenue up 4%;
overall same-store revenue growth impacted by significant
multistate jackpot activity in the prior year and very low activity
in the current year
- Impact of Illinois contract
conclusion
- Lottery product sales revenue up on strong demand for
self-service vending machines
Operating income of $51 million,
compared to $79 million in the prior
year
- Principally due to lower jackpot activity
- Continued growth in lottery service despite conclusion of
Illinois contract
International
Select Financial
Data
|
|
|
As
|
Constant
|
|
Key Performance
Indicators
|
|
|
%
|
Period Ended
December 31
|
Q4
'19
|
Q4
'18
|
Reported
|
FX
|
|
Period Ended
December 31
|
Q4
'19
|
Q4
'18
|
Change
|
Gaming
|
|
Total
revenue
|
131
|
127
|
3%
|
6%
|
|
Installed base
units (end of period)
|
|
|
|
|
Gaming
services
|
27
|
34
|
-20%
|
-18%
|
|
Casino
|
9,709
|
10,636
|
-8.7%
|
|
|
Terminal
|
10
|
13
|
-20%
|
-16%
|
|
VLT - Government sponsored
|
5,148
|
4,269
|
20.6%
|
|
|
Other
|
16
|
21
|
-20%
|
-19%
|
|
Total
installed base units
|
14,857
|
14,905
|
-0.3%
|
|
Product
sales
|
105
|
94
|
12%
|
14%
|
|
|
|
|
|
|
|
Terminal
|
77
|
64
|
21%
|
24%
|
|
Machine units
shipped
|
|
|
|
|
|
Other
|
27
|
30
|
-9%
|
-7%
|
|
New/expansion
|
406
|
528
|
-23.1%
|
|
|
|
|
|
|
|
|
|
Replacement
|
5,818
|
4,730
|
23.0%
|
Lottery
|
|
Total
revenue
|
80
|
76
|
5%
|
6%
|
|
Total
machines shipped
|
6,224
|
5,258
|
18.4%
|
|
Lottery
services
|
75
|
72
|
5%
|
6%
|
|
|
|
|
|
|
|
FMC
|
75
|
72
|
5%
|
6%
|
|
Lottery same-store
revenue growth
|
|
|
|
|
|
Instant ticket
& draw games
|
58
|
56
|
3%
|
3%
|
|
Instant
ticket & draw games
|
|
|
5.6%
|
|
|
Other
services
|
18
|
16
|
11%
|
16%
|
|
Multistate jackpots
|
|
|
12.9%
|
|
Product
sales
|
5
|
4
|
8%
|
10%
|
|
Total
lottery same-store revenue growth
|
|
|
6.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
Total
revenue
|
15
|
18
|
-17%
|
-14%
|
|
|
|
|
|
|
Service
revenue
|
14
|
17
|
-17%
|
-14%
|
|
|
|
|
|
|
Product
sales
|
0
|
0
|
0%
|
0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
Revenue
|
226
|
221
|
2%
|
4%
|
|
|
|
|
|
|
Operating
income
|
53
|
28
|
87%
|
98%
|
|
|
|
|
|
Revenue of $226 million, up 2%
from the prior-year period as reported, up 4% at constant
currency
- Gaming product sales revenue of $105
million, up 12% as reported, up 14% at constant
currency
-
- Significant increase in replacement units shipped, including
1,628 Sweden VLTs; lower new/expansion activity
- Gaming service revenue was $27
million
-
- Year-over-year decline in the installed base due to conversions
in prior periods
- Lower interactive revenue
- Lottery service revenue of $75
million, up 5% as reported, up 6% at constant currency
-
- 6% overall same-store revenue growth on broad-based European
strength
Operating income of $53 million,
up significantly compared to $28
million in the prior year
- Improved gaming machine mix
- Lower bad debt expense
Italy
Select Financial
Data
|
|
|
As
|
Constant
|
|
Key Performance
Indicators
|
|
|
%
|
Period Ended
December 31
|
Q4
'19
|
Q4
'18
|
Reported
|
FX
|
|
Period Ended
December 31
|
Q4
'19
|
Q4
'18
|
Change
|
Gaming
|
|
Total
revenue
|
171
|
192
|
-11%
|
-9%
|
|
(In € millions,
except machines)
|
|
|
|
|
Gaming
services
|
171
|
191
|
-11%
|
-9%
|
|
Lottery
|
|
|
|
|
|
Terminal
|
154
|
174
|
-11%
|
-9%
|
|
Lotto
wagers
|
2,062
|
2,089
|
-1.3%
|
|
|
Other
|
17
|
18
|
-5%
|
-3%
|
|
10eLotto
|
1,468
|
1,495
|
-1.8%
|
|
Product
sales
|
0
|
0
|
0%
|
0%
|
|
Core
|
483
|
468
|
3.3%
|
|
|
|
|
|
|
|
|
|
Late
numbers
|
65
|
78
|
-16.5%
|
Lottery
|
|
Total
revenue
|
194
|
202
|
-4%
|
-2%
|
|
MillionDAY
|
46
|
49
|
-7.2%
|
|
Lottery
services
|
194
|
202
|
-4%
|
-2%
|
|
|
|
|
|
|
|
FMC
|
194
|
202
|
-4%
|
-2%
|
|
Scratch & Win
wagers
|
2,354
|
2,383
|
-1.2%
|
|
|
Instant ticket
& draw games
|
240
|
248
|
-3%
|
-1%
|
|
|
|
|
|
|
|
Other
services
|
(46)
|
(46)
|
0%
|
2%
|
|
Italy lottery
revenue growth
|
|
|
-2.1%
|
|
Product
sales
|
0
|
0
|
0%
|
0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gaming
|
|
|
|
Other
|
|
Total
revenue
|
83
|
68
|
22%
|
25%
|
|
Installed base
(end of period)
|
|
|
|
|
Service
revenue
|
83
|
68
|
22%
|
25%
|
|
VLT -
Operator (B2C)
|
11,020
|
10,991
|
0.3%
|
|
Product
sales
|
0
|
0
|
0%
|
0%
|
|
VLT -
Supplier (B2B)
|
7,501
|
8,058
|
-6.9%
|
|
|
|
|
|
|
|
|
|
AWP
|
40,892
|
42,928
|
-4.7%
|
Total
|
|
Revenue
|
448
|
462
|
-3%
|
-1%
|
|
Total
installed base
|
59,413
|
61,977
|
-4.1%
|
|
Operating
income
|
113
|
118
|
-4%
|
-2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wagers
|
|
|
|
|
|
|
|
|
|
|
|
|
VLT -
Operator (B2C)
|
1,414
|
1,564
|
-9.5%
|
|
|
|
|
|
|
|
|
|
AWP
|
958
|
997
|
-3.9%
|
|
|
|
|
|
|
|
|
|
Interactive wagers (gaming)
|
577
|
492
|
17.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
Sports
betting wagers (1)
|
298
|
273
|
9.1%
|
|
|
|
|
|
|
|
|
|
Sports
betting payout (%) (1)
|
83.3%
|
84.2%
|
-0.9
pp
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes
virtual wagers and pools & horses
|
Revenue of $448 million, down 3%
from the prior-year period as reported, in line at constant
currency
- Lottery service revenue of $194
million, down 4% as reported, down 2% at constant currency,
on slightly lower wagers
- Gaming service revenue of $171
million compared to $191
million in the prior year on impact of higher taxes on AWPs
and VLTs
- Other service revenue of $83
million, up 22% as reported, up 25% at constant
currency
-
- Increased sports betting wagers and lower payout versus the
prior year
- Growth in commercial services
Operating income of $113 million,
down 4% as reported, down 2% at constant currency
- Strong sports betting contribution nearly offsets impact of
higher taxes
Other Developments
- The Company will file its 2019 Annual Report on Form 20-F with
the United States Securities and Exchange Commission (SEC)
today
-
- Report will be available in the Investor Relations section of
the Company's website at www.IGT.com and on the SEC's website,
www.SEC.com
2020 Outlook
- Operating income of $740 -
$790 million
- Depreciation and amortization of $870 - $880
million
- Capital expenditures of $400 -
$500 million
- Full-year EUR/USD exchange rate of 1.10
- Outlook does not factor any potential COVID-19 impact
Conference Call and Webcast
March 3, 2020, at 8:00 a.m. EST
Live webcast available under "News, Events & Presentations"
on IGT's Investor Relations website at www.IGT.com; replay
available on the website following the live event
Dial-In Numbers
- US/Canada toll-free dial-in
number is +1 844 842 7999
- Outside the US/Canada
toll-free number is +1 612 979 9887
- Conference ID/confirmation code is 1978149
- A telephone replay of the call will be available for one
week
-
- US/Canada replay number is +1
855 859 2056
- Outside the US/Canada replay
number is +1 404 537 3406
- ID/Confirmation code is 1978149
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 2019 are
calculated using the same foreign exchange rates as the
corresponding 2018 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.
About IGT
IGT (NYSE:IGT) is the global leader in gaming. We deliver
entertaining and responsible gaming experiences for players across
all channels and regulated segments, from Gaming Machines and
Lotteries to Sports Betting and Digital. Leveraging a wealth of
compelling content, substantial investment in innovation, player
insights, operational expertise, and leading-edge technology, our
solutions deliver unrivalled gaming experiences that engage players
and drive growth. 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 approximately 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, 2018 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. Nothing in this news release is
intended, or is to be construed, as a profit forecast or to be
interpreted to mean that the financial performance of International
Game Technology PLC for the current or any future financial years
will necessarily match or exceed the historical published financial
performance or International Game Technology PLC, as applicable.
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 their entirety by this
cautionary statement.
Contact:
Phil O'Shaughnessy, Global
Communications, toll free in U.S./Canada +1 (844) IGT-7452; outside
U.S./Canada +1 (401) 392-7452
Francesco Luti, +39 3485475493; for
Italian media inquiries
James Hurley, Investor Relations, +1
(401) 392-7190
International Game
Technology PLC
|
Consolidated
Statements of Operations
|
($ and shares
in thousands, except per share amounts)
|
Unaudited
|
|
|
|
|
|
For the three
months ended
|
|
December
31,
|
|
2019
|
|
2018
|
|
|
|
|
Service
revenue
|
967,972
|
|
1,029,031
|
Product
sales
|
285,418
|
|
237,101
|
Total
revenue
|
1,253,390
|
|
1,266,132
|
|
|
|
|
Cost of
services
|
614,836
|
|
638,105
|
Cost of product
sales
|
156,076
|
|
157,965
|
Selling, general and
administrative
|
229,531
|
|
238,654
|
Research and
development
|
65,936
|
|
64,782
|
Goodwill
impairment
|
99,000
|
|
118,000
|
Other operating
expense, net
|
6,632
|
|
7,735
|
Total operating
expenses
|
1,172,011
|
|
1,225,241
|
|
|
|
|
Operating
income
|
81,379
|
|
40,891
|
|
|
|
|
Interest expense,
net
|
(100,649)
|
|
(103,666)
|
Foreign exchange
(loss) gain, net
|
(101,770)
|
|
32,096
|
Other expense,
net
|
(4,758)
|
|
(9,040)
|
Total
non-operating expenses
|
(207,177)
|
|
(80,610)
|
|
|
|
|
Loss before
provision for income taxes
|
(125,798)
|
|
(39,719)
|
|
|
|
|
Provision for income
taxes
|
12,587
|
|
30,337
|
|
|
|
|
Net
loss
|
(138,385)
|
|
(70,056)
|
|
|
|
|
Less: Net income
attributable to non-controlling interests
|
29,313
|
|
31,943
|
|
|
|
|
Net loss
attributable to IGT PLC
|
(167,698)
|
|
(101,999)
|
|
|
|
|
|
|
|
|
Net loss
attributable to IGT PLC per common share - basic
|
(0.82)
|
|
(0.50)
|
Net loss
attributable to IGT PLC per common share - diluted
|
(0.82)
|
|
(0.50)
|
|
|
|
|
Weighted-average
shares - basic
|
204,435
|
|
204,307
|
Weighted-average
shares - diluted
|
204,435
|
|
204,307
|
International Game
Technology PLC
|
Consolidated
Statements of Operations
|
($ and shares
in thousands, except per share amounts)
|
Unaudited
|
|
|
|
|
|
For the year
ended
|
|
December
31,
|
|
2019
|
|
2018
|
|
|
|
|
Service
revenue
|
3,860,746
|
|
4,046,314
|
Product
sales
|
925,060
|
|
784,942
|
Total
revenue
|
4,785,806
|
|
4,831,256
|
|
|
|
|
Cost of
services
|
2,380,355
|
|
2,450,658
|
Cost of product
sales
|
553,293
|
|
491,030
|
Selling, general and
administrative
|
846,047
|
|
844,059
|
Research and
development
|
266,241
|
|
263,279
|
Goodwill
impairment
|
99,000
|
|
118,000
|
Other operating
expense, net
|
3,742
|
|
17,239
|
Total operating
expenses
|
4,148,678
|
|
4,184,265
|
|
|
|
|
Operating
income
|
637,128
|
|
646,991
|
|
|
|
|
Interest expense,
net
|
(410,129)
|
|
(417,387)
|
Foreign exchange
gain, net
|
39,839
|
|
129,051
|
Other income
(expense), net
|
17,929
|
|
(54,607)
|
Total
non-operating expenses
|
(352,361)
|
|
(342,943)
|
|
|
|
|
Income before
provision for income taxes
|
284,767
|
|
304,048
|
|
|
|
|
Provision for income
taxes
|
173,109
|
|
189,401
|
|
|
|
|
Net
income
|
111,658
|
|
114,647
|
|
|
|
|
Less: Net income
attributable to non-controlling interests
|
130,683
|
|
135,997
|
|
|
|
|
Net loss
attributable to IGT PLC
|
(19,025)
|
|
(21,350)
|
|
|
|
|
|
|
|
|
Net loss
attributable to IGT PLC per common share - basic
|
(0.09)
|
|
(0.10)
|
Net loss
attributable to IGT PLC per common share - diluted
|
(0.09)
|
|
(0.10)
|
|
|
|
|
Weighted-average
shares - basic
|
204,373
|
|
204,083
|
Weighted-average
shares - diluted
|
204,373
|
|
204,083
|
International Game
Technology PLC
|
Consolidated
Balance Sheets
|
($
thousands)
|
Unaudited
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
2019
|
|
2018
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
662,934
|
|
250,669
|
Restricted cash and
cash equivalents
|
231,317
|
|
261,108
|
Trade and other
receivables, net
|
1,006,127
|
|
949,085
|
Inventories
|
161,790
|
|
282,698
|
Other current
assets
|
571,869
|
|
543,136
|
Total current
assets
|
2,634,037
|
|
2,286,696
|
Systems, equipment
and other assets related to contracts, net
|
1,307,940
|
|
1,404,426
|
Property, plant and
equipment, net
|
146,055
|
|
185,349
|
Operating lease
right-of-use-assets
|
341,538
|
|
-
|
Goodwill
|
5,451,494
|
|
5,580,227
|
Intangible assets,
net
|
1,836,002
|
|
2,044,723
|
Other non-current
assets
|
1,927,524
|
|
2,147,081
|
Total non-current
assets
|
11,010,553
|
|
11,361,806
|
Total
assets
|
13,644,590
|
|
13,648,502
|
|
|
|
|
Liabilities and
shareholders' equity
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
1,120,922
|
|
1,142,371
|
Current portion of
long-term debt
|
462,155
|
|
-
|
Short-term
borrowings
|
3,193
|
|
34,822
|
Other current
liabilities
|
882,081
|
|
824,931
|
Total current
liabilities
|
2,468,351
|
|
2,002,124
|
Long-term debt, less
current portion
|
7,600,169
|
|
7,977,267
|
Deferred income
taxes
|
366,822
|
|
446,083
|
Operating lease
liabilities
|
310,721
|
|
-
|
Other non-current
liabilities
|
413,549
|
|
471,099
|
Total non-current
liabilities
|
8,691,261
|
|
8,894,449
|
Total
liabilities
|
11,159,612
|
|
10,896,573
|
Commitments and
contingencies
|
|
|
|
Shareholders'
equity
|
2,484,978
|
|
2,751,929
|
Total liabilities
and shareholders' equity
|
13,644,590
|
|
13,648,502
|
International Game
Technology PLC
|
Consolidated
Statements of Cash Flows
|
($
thousands)
|
Unaudited
|
|
|
|
|
|
For the year
ended
|
|
|
December
31,
|
|
|
2019
|
|
2018
|
Cash flows from
operating activities
|
|
|
|
|
Net income
|
|
111,658
|
|
114,647
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
Depreciation
|
|
434,264
|
|
432,899
|
Amortization
|
|
279,193
|
|
272,561
|
Amortization of
upfront license fees
|
|
205,739
|
|
217,341
|
Goodwill
impairment
|
|
99,000
|
|
118,000
|
Stock-based
compensation expense
|
|
26,514
|
|
33,086
|
Debt issuance cost
amortization
|
|
22,436
|
|
22,042
|
Loss on
extinguishment of debt
|
|
11,964
|
|
54,423
|
Foreign exchange
gain, net
|
|
(39,839)
|
|
(129,051)
|
Gain on sale of
assets
|
|
(64,714)
|
|
(318)
|
Deferred income
taxes
|
|
(68,293)
|
|
(34,494)
|
Other non-cash costs,
net
|
|
23,091
|
|
32,275
|
Changes in operating
assets and liabilities, excluding the effects of disposition and
acquisitions:
|
|
Trade and other
receivables
|
|
(58,213)
|
|
(54,356)
|
Inventories
|
|
84,472
|
|
12,556
|
Upfront license
fees
|
|
-
|
|
(878,055)
|
Accounts
payable
|
|
7,180
|
|
(51,990)
|
Other assets and
liabilities
|
|
18,683
|
|
(131,940)
|
Net cash provided
by operating activities
|
|
1,093,135
|
|
29,626
|
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
|
Capital
expenditures
|
|
(442,084)
|
|
(533,052)
|
Proceeds from sale of
assets
|
|
124,043
|
|
19,243
|
Other
|
|
5,851
|
|
2,272
|
Net cash used in
investing activities
|
|
(312,190)
|
|
(511,537)
|
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
|
Principal payments on
long-term debt
|
|
(1,264,647)
|
|
(1,899,888)
|
Dividends
paid
|
|
(163,503)
|
|
(163,236)
|
Net (payments of)
receipts from financial liabilities
|
|
(34,324)
|
|
7,123
|
Net (payments of)
proceeds from short-term borrowings
|
|
(32,067)
|
|
34,822
|
Debt issuance costs
paid
|
|
(25,930)
|
|
(17,033)
|
Payments in
connection with extinguishment of debt
|
|
(8,689)
|
|
(49,976)
|
Proceeds from
long-term debt
|
|
1,397,025
|
|
1,687,761
|
Dividends paid -
non-controlling interests
|
|
(136,655)
|
|
(126,926)
|
Return of capital -
non-controlling interests
|
|
(98,788)
|
|
(85,121)
|
Capital increase -
non-controlling interests
|
|
1,499
|
|
321,584
|
Other
|
|
(10,195)
|
|
(20,655)
|
Net cash used in
financing activities
|
|
(376,274)
|
|
(311,545)
|
|
|
|
|
|
Net increase
(decrease) in cash and cash equivalents, and restricted
cash
|
|
404,671
|
|
(793,456)
|
Effect of exchange
rate changes on cash and cash equivalents, and restricted
cash
|
|
(22,197)
|
|
(197)
|
Cash and cash
equivalents, and restricted cash at the beginning of the
period
|
|
511,777
|
|
1,305,430
|
Cash and cash
equivalents, and restricted cash at the end of the
period
|
|
894,251
|
|
511,777
|
|
|
|
|
|
|
|
|
|
|
Supplemental
Cash Flow Information:
|
|
|
|
|
Interest
paid
|
|
(400,022)
|
|
(445,698)
|
Income taxes
paid
|
|
(235,385)
|
|
(239,831)
|
International Game
Technology PLC
|
Net
Debt
|
($
thousands)
|
Unaudited
|
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
2019
|
|
2018
|
|
|
|
|
|
4.125% Senior Secured
Notes due February 2020(2)
|
|
-
|
|
499,167
|
4.750% Senior Secured
Notes due March 2020 (2)
|
|
-
|
|
438,252
|
5.500% Senior Secured
Notes due June 2020 (1)
|
|
-
|
|
27,519
|
6.250% Senior Secured
Notes due February 2022 (1)
|
|
1,491,328
|
|
1,469,609
|
4.750% Senior Secured
Notes due February 2023 (2)
|
|
948,382
|
|
964,730
|
5.350% Senior Secured
Notes due October 2023(1)
|
|
60,885
|
|
60,983
|
3.500% Senior Secured
Notes due July 2024 (2)
|
|
557,331
|
|
567,179
|
6.500% Senior Secured
Notes due February 2025 (1)
|
|
1,089,959
|
|
1,088,385
|
3.500% Senior Secured
Notes due June 2026 (2)
|
|
835,105
|
|
-
|
6.250% Senior Secured
Notes due January 2027(1)
|
|
743,387
|
|
742,667
|
2.375% Senior Secured
Notes due April 2028 (2)
|
|
556,403
|
|
-
|
Senior Secured
Notes, long-term
|
|
6,282,780
|
|
5,858,491
|
|
|
|
|
|
Term Loan Facilities
due January 2023 (2)
|
|
1,317,389
|
|
1,705,395
|
Revolving Credit
Facilities due July 2024 (1) (2)
|
|
-
|
|
413,381
|
Long-term debt,
less current portion
|
|
7,600,169
|
|
7,977,267
|
|
|
|
|
|
4.750% Senior Secured
Notes due March 2020 (2)
|
|
434,789
|
|
-
|
5.500% Senior Secured
Notes due June 2020 (1)
|
|
27,366
|
|
-
|
Current portion of
long-term debt
|
|
462,155
|
|
-
|
|
|
|
|
|
Short-term
borrowings
|
|
3,193
|
|
34,822
|
Total
debt
|
|
8,065,517
|
|
8,012,089
|
|
|
|
|
|
Less: Cash and cash
equivalents
|
|
662,934
|
|
250,669
|
Less: Debt issuance
costs, net - Revolving Credit Facilities due July 2024
|
|
20,464
|
|
-
|
|
|
|
|
|
Net
debt
|
|
7,382,119
|
|
7,761,420
|
|
|
|
|
|
(1) U.S.
dollar-denominated debt
|
|
|
|
|
(2)
Euro-denominated debt
|
|
|
|
|
Note: Net debt is a
non-GAAP financial measure
|
|
|
|
|
International Game
Technology PLC
|
Reconciliations of
Non-GAAP Financial Measures
|
($ and shares in
thousands, except per share amounts)
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months
ended
|
|
|
December
31,
|
|
|
2019
|
|
2018
|
|
|
|
|
|
Net loss
|
|
(138,385)
|
|
(70,056)
|
Provision for income
taxes
|
|
12,587
|
|
30,337
|
Interest expense,
net
|
|
100,649
|
|
103,666
|
Foreign exchange loss
(gain), net
|
|
101,770
|
|
(32,096)
|
Other non-operating
expense, net
|
|
4,758
|
|
9,040
|
Operating
income
|
|
81,379
|
|
40,891
|
Goodwill
impairment
|
|
99,000
|
|
118,000
|
Depreciation
|
|
118,973
|
|
120,696
|
Amortization -
purchase accounting
|
|
47,958
|
|
49,772
|
Amortization -
non-purchase accounting (a)
|
|
75,183
|
|
70,922
|
Stock-based
compensation expense
|
|
6,468
|
|
8,142
|
Other
(b)
|
|
6,566
|
|
7,534
|
Adjusted
EBITDA
|
|
435,527
|
|
415,957
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities
|
|
304,430
|
|
(219,686)
|
Capital
expenditures
|
|
(109,368)
|
|
(158,739)
|
Free Cash
Flow
|
|
195,062
|
|
(378,425)
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable
to IGT PLC
|
|
(167,698)
|
|
(101,999)
|
Foreign exchange loss
(gain), net
|
|
101,770
|
|
(32,096)
|
Goodwill
impairment
|
|
99,000
|
|
118,000
|
Depreciation and
amortization - purchase accounting
|
|
48,591
|
|
51,774
|
Refinancing
costs
|
|
-
|
|
5,004
|
Other
(b)
|
|
6,566
|
|
7,534
|
Income tax impact on
adjustments (c)
|
|
(25,668)
|
|
183
|
Adjusted net
income attributable to IGT PLC
|
|
62,561
|
|
48,400
|
Weighted-average
shares - diluted
|
|
204,435
|
|
204,307
|
Adjusted
weighted-average shares - diluted (d)
|
|
204,631
|
|
204,328
|
Net loss attributable
to IGT PLC per common share - diluted
|
|
(0.82)
|
|
(0.50)
|
Adjusted net
income attributable to IGT PLC per common share -
diluted
|
|
0.31
|
|
0.24
|
|
(a) Includes
amortization of upfront license fees.
|
(b) Includes
non-goodwill impairment charges, restructuring expense, and
transaction-related costs.
|
(c) Adjustments for
income taxes are determined based on the statutory tax rate in
effect in the respective jurisdiction where the adjustment
originated.
|
(d) Adjusted
weighted-average shares – diluted includes shares that were
excluded from the GAAP computation, due to the net loss as
reported.
|
International Game
Technology PLC
|
Reconciliations of
Non-GAAP Financial Measures
|
($ and shares in
thousands, except per share amounts)
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
For the year
ended
|
|
|
December
31,
|
|
|
2019
|
|
2018
|
|
|
|
|
|
Net income
|
|
111,658
|
|
114,647
|
Provision for income
taxes
|
|
173,109
|
|
189,401
|
Interest expense,
net
|
|
410,129
|
|
417,387
|
Foreign exchange
gain, net
|
|
(39,839)
|
|
(129,051)
|
Other non-operating
(income) expense, net
|
|
(17,929)
|
|
54,607
|
Operating
income
|
|
637,128
|
|
646,991
|
Goodwill
impairment
|
|
99,000
|
|
118,000
|
Depreciation
|
|
434,264
|
|
432,899
|
Amortization -
purchase accounting
|
|
191,624
|
|
200,095
|
Amortization -
non-purchase accounting (a)
|
|
293,308
|
|
289,807
|
Stock-based
compensation expense
|
|
26,514
|
|
33,086
|
Other
(b)
|
|
31,147
|
|
16,372
|
Adjusted
EBITDA
|
|
1,712,985
|
|
1,737,250
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities
|
|
1,093,135
|
|
29,626
|
Capital
expenditures
|
|
(442,084)
|
|
(533,052)
|
Free Cash
Flow
|
|
651,051
|
|
(503,426)
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable
to IGT PLC
|
|
(19,025)
|
|
(21,350)
|
Foreign exchange
gain, net
|
|
(39,839)
|
|
(129,051)
|
Goodwill
impairment
|
|
99,000
|
|
118,000
|
Depreciation and
amortization - purchase accounting
|
|
194,153
|
|
208,367
|
Refinancing
costs
|
|
11,964
|
|
54,463
|
Other
(b)
|
|
31,147
|
|
16,372
|
Income tax impact on
adjustments (c)
|
|
(56,487)
|
|
(45,379)
|
Adjusted net
income attributable to IGT PLC
|
|
220,913
|
|
201,422
|
Weighted-average
shares - diluted
|
|
204,373
|
|
204,083
|
Adjusted
weighted-average shares - diluted (d)
|
|
204,557
|
|
204,363
|
Net loss attributable
to IGT PLC per common share - diluted
|
|
(0.09)
|
|
(0.10)
|
Adjusted net
income attributable to IGT PLC per common share -
diluted
|
|
1.08
|
|
0.99
|
|
(a) Includes
amortization of upfront license fees.
|
(b) Includes
non-goodwill impairment charges, restructuring expense, and
transaction-related costs.
|
(c) Adjustments for
income taxes are determined based on the statutory tax rate in
effect in the respective jurisdiction where the adjustment
originated.
|
(d) Adjusted
weighted-average shares – diluted includes shares that were
excluded from the GAAP computation, due to the net loss as
reported.
|
INTERNATIONAL GAME
TECHNOLOGY PLC
|
|
|
|
|
|
|
|
|
Select Financial
Data
|
|
|
As
|
Constant
|
|
Key Performance
Indicators
|
|
|
%
|
Period Ended
December 31
|
Q4
'19
|
Q4
'18
|
Reported
|
FX
|
|
Period Ended
December 31
|
Q4
'19
|
Q4
'18
|
Change
|
Gaming
|
|
Total
revenue
|
622
|
632
|
-2%
|
-1%
|
|
Installed base
units (end of period)
|
|
|
|
|
Gaming
services
|
374
|
413
|
-9%
|
-8%
|
|
Casino
|
30,202
|
33,744
|
-10.5%
|
|
|
Terminal
|
286
|
312
|
-9%
|
-7%
|
|
VLT -
Government sponsored (ex-Italy)
|
18,701
|
19,208
|
-2.6%
|
|
|
Other
|
88
|
100
|
-12%
|
-12%
|
|
VLT -
Italy supplier (B2B)
|
7,501
|
8,058
|
-6.9%
|
|
Product
sales
|
248
|
220
|
13%
|
14%
|
|
Total
installed base units
|
56,404
|
61,010
|
-7.5%
|
|
|
Terminal
|
188
|
159
|
18%
|
19%
|
|
Yield
(average gross revenue per unit per day)
|
$
27.62
|
$
26.90
|
2.7%
|
|
|
Other
|
60
|
60
|
-1%
|
0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional Italian network details:
|
|
|
|
Lottery
|
|
Total
revenue
|
514
|
547
|
-6%
|
-5%
|
|
VLT -
Operator (B2C)
|
11,020
|
10,991
|
0.3%
|
|
Lottery
services
|
491
|
530
|
-7%
|
-6%
|
|
AWP
|
40,892
|
42,928
|
-4.7%
|
|
|
FMC
|
474
|
500
|
-5%
|
-4%
|
|
|
|
|
|
|
|
Instant ticket
& draw games
|
465
|
497
|
-6%
|
-5%
|
|
Machine units
shipped
|
|
|
|
|
|
Other
services
|
8
|
3
|
161%
|
177%
|
|
New/expansion
|
1,811
|
775
|
133.7%
|
|
|
LMA
|
17
|
29
|
-41%
|
-41%
|
|
Replacement
|
11,804
|
11,215
|
5.3%
|
|
Product
sales
|
23
|
17
|
36%
|
37%
|
|
Total
machines shipped
|
13,615
|
11,990
|
13.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
Total
revenue
|
118
|
87
|
35%
|
38%
|
|
Global lottery
same-store revenue growth
|
|
|
|
|
Service
revenue
|
103
|
87
|
19%
|
22%
|
|
Instant
ticket & draw games
|
|
|
4.3%
|
|
Product
sales
|
14
|
0
|
NM
|
NM
|
|
Multistate jackpots
|
|
|
-56.6%
|
|
|
|
|
|
|
|
|
|
Total
lottery same-store revenue growth (ex-Italy)
|
|
-7.1%
|
Consolidated
|
|
Revenue
|
1,253
|
1,266
|
-1%
|
0%
|
|
Italy
lottery revenue growth
|
|
|
-2.1%
|
|
Operating
Income:
|
|
|
|
|
|
|
|
|
|
|
|
Segment
total
|
286
|
277
|
3%
|
5%
|
|
|
|
|
|
|
|
Purchase
accounting
|
(148)
|
(170)
|
-13%
|
13%
|
|
|
|
|
|
|
|
Corporate
support
|
(57)
|
(67)
|
-15%
|
14%
|
|
|
|
|
|
|
|
Total
|
81
|
41
|
99%
|
112%
|
|
|
|
|
|
Full Year Comparisons by Segment:
NORTH AMERICA
GAMING & INTERACTIVE
|
|
|
|
|
|
|
|
|
Select Financial
Data
|
|
|
As
|
Constant
|
|
Key Performance
Indicators
|
|
|
%
|
Period Ended
December 31
|
FY
'19
|
FY
'18
|
Reported
|
FX
|
|
Period Ended
December 31
|
FY
'19
|
FY
'18
|
Change
|
Gaming
|
|
Total
revenue
|
1,042
|
1,001
|
4%
|
4%
|
|
Installed base
units (end of period)
|
|
|
|
|
Gaming
services
|
605
|
622
|
-3%
|
-3%
|
|
Casino
|
20,493
|
23,108
|
-11.3%
|
|
|
Terminal
|
407
|
420
|
-3%
|
-3%
|
|
|
|
|
|
|
|
Other
|
198
|
202
|
-2%
|
-2%
|
|
Machine units
shipped
|
|
|
|
|
Product
sales
|
437
|
379
|
15%
|
15%
|
|
New/expansion
|
4,116
|
3,917
|
5.1%
|
|
|
Terminal
|
321
|
262
|
23%
|
23%
|
|
Replacement
|
16,903
|
14,922
|
13.3%
|
|
|
Other
|
116
|
117
|
-1%
|
-1%
|
|
Total
machines shipped
|
21,019
|
18,839
|
11.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
Total
revenue
|
28
|
2
|
NM
|
NM
|
|
|
|
|
|
|
Service
revenue
|
14
|
2
|
NM
|
NM
|
|
|
|
|
|
|
Product
revenue
|
14
|
0
|
0%
|
0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
Revenue
|
1,071
|
1,003
|
7%
|
7%
|
|
|
|
|
|
|
Operating
income
|
264
|
219
|
21%
|
18%
|
|
|
|
|
|
NORTH AMERICA
LOTTERY
|
|
|
|
|
|
|
|
|
|
Select Financial
Data
|
|
|
As
|
Constant
|
|
Key Performance
Indicators
|
|
|
%
|
Period Ended
December 31
|
FY
'19
|
FY
'18
|
Reported
|
FX
|
|
Period Ended
December 31
|
FY
'19
|
FY
'18
|
Change
|
Gaming
|
|
Total
revenue
|
153
|
154
|
0%
|
0%
|
|
Installed base
units (end of period)
|
|
|
|
|
Gaming
services
|
152
|
153
|
-1%
|
-1%
|
|
VLT - Government sponsored
|
13,553
|
14,939
|
-9.3%
|
|
|
Terminal
|
97
|
100
|
-3%
|
-3%
|
|
|
|
|
|
|
|
Other
|
54
|
54
|
2%
|
2%
|
|
Lottery same-store
revenue growth
|
|
|
|
|
Product
sales
|
2
|
0
|
NM
|
NM
|
|
Instant
ticket & draw games
|
|
|
4.6%
|
|
|
|
|
|
|
|
|
|
Multistate jackpots
|
|
|
-29.3%
|
Lottery
|
|
Total
revenue
|
1,007
|
1,038
|
-3%
|
-3%
|
|
Total
lottery same-store revenue growth
|
|
|
-0.6%
|
|
Lottery
services
|
915
|
958
|
-4%
|
-4%
|
|
|
|
|
|
|
|
FMC
|
807
|
829
|
-3%
|
-3%
|
|
|
|
|
|
|
|
Instant ticket
& draw games
|
663
|
697
|
-5%
|
-5%
|
|
|
|
|
|
|
|
Other
services
|
145
|
131
|
10%
|
10%
|
|
|
|
|
|
|
|
LMA
|
108
|
129
|
-16%
|
-16%
|
|
|
|
|
|
|
Product
sales
|
91
|
80
|
14%
|
15%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
Total
revenue
|
5
|
0
|
NM
|
NM
|
|
|
|
|
|
|
Service
revenue
|
5
|
0
|
NM
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
Revenue
|
1,165
|
1,192
|
-2%
|
-2%
|
|
|
|
|
|
|
Operating
income
|
256
|
297
|
-14%
|
-13%
|
|
|
|
|
|
INTERNATIONAL
|
|
|
|
|
|
|
|
|
|
Select Financial
Data
|
|
|
As
|
Constant
|
|
Key Performance
Indicators
|
|
|
%
|
Period Ended
December 31
|
FY
'19
|
FY
'18
|
Reported
|
FX
|
|
Period Ended
December 31
|
FY
'19
|
FY
'18
|
Change
|
Gaming
|
|
Total
revenue
|
473
|
417
|
14%
|
18%
|
|
Installed base
units (end of period)
|
|
|
|
|
Gaming
services
|
112
|
140
|
-20%
|
-14%
|
|
Casino
|
9,709
|
10,636
|
-8.7%
|
|
|
Terminal
|
46
|
54
|
-15%
|
-7%
|
|
VLT - Government sponsored
|
5,148
|
4,269
|
20.6%
|
|
|
Other
|
66
|
86
|
-23%
|
-19%
|
|
Total
installed base units
|
14,857
|
14,905
|
-0.3%
|
|
Product
sales
|
361
|
277
|
30%
|
35%
|
|
|
|
|
|
|
|
Terminal
|
259
|
193
|
34%
|
38%
|
|
Machine units
shipped
|
|
|
|
|
|
Other
|
102
|
84
|
22%
|
27%
|
|
New/expansion
|
1,698
|
1,880
|
-9.7%
|
|
|
|
|
|
|
|
|
|
Replacement
|
19,308
|
11,820
|
63.4%
|
Lottery
|
|
Total
revenue
|
303
|
329
|
-8%
|
-5%
|
|
Total
machines shipped
|
21,006
|
13,700
|
53.3%
|
|
Lottery
services
|
284
|
283
|
1%
|
4%
|
|
|
|
|
|
|
|
FMC
|
284
|
283
|
1%
|
4%
|
|
Lottery same-store
revenue growth
|
|
|
|
|
|
Instant ticket
& draw games
|
222
|
222
|
0%
|
4%
|
|
Instant
ticket & draw games
|
|
|
4.1%
|
|
|
Other
services
|
63
|
61
|
2%
|
5%
|
|
Multistate jackpots
|
|
|
18.4%
|
|
Product
sales
|
19
|
46
|
-60%
|
-58%
|
|
Total
lottery same-store revenue growth
|
|
|
4.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
Total
revenue
|
64
|
74
|
-13%
|
-7%
|
|
|
|
|
|
|
Service
revenue
|
64
|
73
|
-12%
|
-5%
|
|
|
|
|
|
|
Product
sales
|
0
|
2
|
NM
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
Revenue
|
840
|
820
|
2%
|
7%
|
|
|
|
|
|
|
Operating
income
|
127
|
142
|
-11%
|
-3%
|
|
|
|
|
|
ITALY
|
|
|
|
|
|
|
|
|
|
|
Select Financial
Data
|
|
|
As
|
Constant
|
|
Key Performance
Indicators
|
|
|
%
|
Period Ended
December 31
|
FY
'19
|
FY
'18
|
Reported
|
FX
|
|
Period Ended
December 31
|
FY
'19
|
FY
'18
|
Change
|
Gaming
|
|
Total
revenue
|
633
|
734
|
-14%
|
-9%
|
|
(In € millions,
except machines)
|
|
|
|
|
Gaming
services
|
632
|
733
|
-14%
|
-9%
|
|
Lottery
|
|
|
|
|
|
Terminal
|
566
|
665
|
-15%
|
-10%
|
|
Lotto
wagers
|
8,149
|
8,017
|
1.7%
|
|
|
Other
|
65
|
68
|
-4%
|
1%
|
|
10eLotto
|
5,860
|
5,728
|
2.3%
|
|
Product
sales
|
1
|
1
|
6%
|
9%
|
|
Core
|
1,941
|
1,877
|
3.4%
|
|
|
|
|
|
|
|
|
|
Late
numbers
|
163
|
227
|
-28.3%
|
Lottery
|
|
Total
revenue
|
760
|
793
|
-4%
|
1%
|
|
MillionDAY
|
187
|
185
|
0.8%
|
|
Lottery
services
|
760
|
793
|
-4%
|
1%
|
|
|
|
|
|
|
|
FMC
|
760
|
793
|
-4%
|
1%
|
|
Scratch & Win
wagers
|
9,194
|
9,207
|
-0.1%
|
|
|
Instant ticket
& draw games
|
949
|
991
|
-4%
|
1%
|
|
|
|
|
|
|
|
Other
services
|
(189)
|
(198)
|
-4%
|
1%
|
|
Italy lottery
revenue growth
|
|
|
0.9%
|
|
Product
sales
|
0
|
0
|
0%
|
0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gaming
|
|
|
|
Other
|
|
Total
revenue
|
316
|
288
|
10%
|
16%
|
|
Installed base
(end of period)
|
|
|
|
|
Service
revenue
|
316
|
288
|
10%
|
16%
|
|
VLT -
Operator (B2C)
|
11,020
|
10,991
|
0.3%
|
|
Product
sales
|
0
|
0
|
0%
|
0%
|
|
VLT -
Supplier (B2B)
|
7,501
|
8,058
|
-6.9%
|
|
|
|
|
|
|
|
|
|
AWP
|
40,892
|
42,928
|
-4.7%
|
Total
|
|
Revenue
|
1,709
|
1,815
|
-6%
|
-1%
|
|
Total
installed base
|
59,413
|
61,977
|
-4.1%
|
|
Operating
income
|
521
|
541
|
-4%
|
2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wagers
|
|
|
|
|
|
|
|
|
|
|
|
|
VLT -
Operator (B2C)
|
5,669
|
5,838
|
-2.9%
|
|
|
|
|
|
|
|
|
|
AWP
|
3,690
|
3,717
|
-0.7%
|
|
|
|
|
|
|
|
|
|
Interactive wagers (gaming)
|
2,066
|
1,890
|
9.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
Sports
betting wagers (1)
|
1,050
|
988
|
6.2%
|
|
|
|
|
|
|
|
|
|
Sports
betting payout (%) (1)
|
83.1%
|
82.4%
|
0.7
pp
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes
virtual wagers and pools & horses
|
INTERNATIONAL GAME
TECHNOLOGY PLC
|
|
|
|
|
|
|
|
|
Select Financial
Data
|
|
|
As
|
Constant
|
|
Key Performance
Indicators
|
|
|
%
|
Period Ended
December 31
|
FY
'19
|
FY
'18
|
Reported
|
FX
|
|
Period Ended
December 31
|
FY
'19
|
FY
'18
|
Change
|
Gaming
|
|
Total
revenue
|
2,301
|
2,306
|
0%
|
2%
|
|
Installed base
units (end of period)
|
|
|
|
|
Gaming
services
|
1,500
|
1,649
|
-9%
|
-6%
|
|
Casino
|
30,202
|
33,744
|
-10.5%
|
|
|
Terminal
|
1,116
|
1,239
|
-10%
|
-7%
|
|
VLT -
Government sponsored (ex-Italy)
|
18,701
|
19,208
|
-2.6%
|
|
|
Other
|
385
|
410
|
-6%
|
-4%
|
|
VLT -
Italy supplier (B2B)
|
7,501
|
8,058
|
-6.9%
|
|
Product
sales
|
801
|
657
|
22%
|
24%
|
|
Total
installed base units
|
56,404
|
61,010
|
-7.5%
|
|
|
Terminal
|
581
|
455
|
28%
|
29%
|
|
Yield
(average gross revenue per unit per day)
|
$
28.08
|
$
27.72
|
1.3%
|
|
|
Other
|
220
|
202
|
9%
|
11%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional Italian network details:
|
|
|
|
Lottery
|
|
Total
revenue
|
2,070
|
2,161
|
-4%
|
-2%
|
|
VLT -
Operator (B2C)
|
11,020
|
10,991
|
0.3%
|
|
Lottery
services
|
1,960
|
2,034
|
-4%
|
-1%
|
|
AWP
|
40,892
|
42,928
|
-4.7%
|
|
|
FMC
|
1,852
|
1,905
|
-3%
|
0%
|
|
|
|
|
|
|
|
Instant ticket
& draw games
|
1,834
|
1,910
|
-4%
|
-1%
|
|
Machine units
shipped
|
|
|
|
|
|
Other
services
|
18
|
(4)
|
NM
|
NM
|
|
New/expansion
|
5,814
|
5,797
|
0.3%
|
|
|
LMA
|
108
|
129
|
-16%
|
-16%
|
|
Replacement
|
36,211
|
26,742
|
35.4%
|
|
Product
sales
|
110
|
127
|
-13%
|
-12%
|
|
Total
machines shipped
|
42,025
|
32,539
|
29.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
Total
revenue
|
415
|
364
|
14%
|
20%
|
|
Global lottery
same-store revenue growth
|
|
|
|
|
Service
revenue
|
400
|
363
|
10%
|
16%
|
|
Instant
ticket & draw games
|
|
|
4.5%
|
|
Product
sales
|
15
|
2
|
NM
|
NM
|
|
Multistate jackpots
|
|
|
-23.9%
|
|
|
|
|
|
|
|
|
|
Total
lottery same-store revenue growth (ex-Italy)
|
|
0.8%
|
Consolidated
|
|
Revenue
|
4,786
|
4,831
|
-1%
|
2%
|
|
Italy
lottery revenue growth
|
|
|
0.9%
|
|
Operating
Income:
|
|
|
|
|
|
|
|
|
|
|
|
Segment
total
|
1,168
|
1,199
|
-3%
|
1%
|
|
|
|
|
|
|
|
Purchase
accounting
|
(293)
|
(325)
|
-10%
|
10%
|
|
|
|
|
|
|
|
Corporate
support
|
(238)
|
(226)
|
5%
|
-8%
|
|
|
|
|
|
|
|
Total
|
637
|
647
|
-2%
|
3%
|
|
|
|
|
|
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SOURCE International Game Technology PLC