Publishing its Q1 trading results, New York-listed IGT Group Plc has detailed a tough opening to its financial year, reporting declines throughout its core metrics.
The gambling technology and lottery systems provider would detail a group revenue decline of 10% to $1.15 billion (Q1 2016: $1.28 billion).
IGT governance detailed that the revenue decline reflected a tough comparative period, combined with lower gaming product sales and new Italy Lotto concession dynamics.
Closing the period IGT governance would declare a group adjusted EBITDA of $371 million, down 19% corresponding 2016 performance. The gambling group’s period operating income was recorded at $119 million down 37% on 2016’ $188 million.
Breaking down performance, IGT governance stated that global store sale revenues were down 11% following record jackpot activity in North America and the United Kingdom during the prior-year period.
During the period, IGT governance confirmed the sale of social gambling division Double Down to Korean games developer DoubleU for $825 million. The company detailed that it would use the funds gained would be used to lower corporate debt which stands at $7.3 billion.
Speaking to investors Marco Sala CEO of IGT Group commented on performance
“We are experiencing the reality of comparisons with the last year’s unusually high base and the headwinds that we expected in our gaming business. While revenue and adjusted EBITDA did not match the record levels achieved in the first quarter last year, it is important to note that the results we are reporting today are consistent with the pattern for the year that we described in March.
From a high level perspective, let me give you a sense of how I view the quarter. Stripping away some of the major events of the first quarter of 2016, like record-setting jackpots in the United States and the UK and the large gaming system and software sales and also considering the new lotto contract effective since late last year, the picture comes into clearer focus. The performance of our international business was uncharacteristically low in the first quarter for a combination of reasons, which we expect to fully offset in the balance of the year.