International Game Technology (IGT) has published the latest report revealing the annual revenue decrease of 4%.
The $1.3 million increase in the fourth quarter was clearly not enough to stop the annual revenue drop to $4.94 billion.
IGT Chief Executive Officer Marco Sala said the company had had a strong finish to 2017, amplifying the progress that had been made throughout the year.
Focus On Content And Technology
Sala emphasized that bringing the innovative content and technology to the market remained the cornerstone of the strategy, which should be a solid foundation for growth in 2018. Sala pointed out that the company had met all annual objectives, EBITDA expectations included, and added that net debt was slightly better than the outlook.
He added the company had achieved the most important milestone in the year, including the Italian Scratch & Win Concession, a seven years expansion of the California Lottery contract, and the adoption of a new social gaming business model.
Alberto Fornaro, IGT Chief Financial Officer stated the strong second-half performance had enabled the company to meet the annual financial objectives and added IGT had achieved the top end of the EBITDA guidance.
A Drop in North America, Rise in Italy and Internationally
North American Lottery, Italy, and International divisions recorded a 31% revenue drop, mainly because of the sale of Double Down Interactive to the South Korean DoubleU Games. The company’s revenue was $281 million, 23.6% less when compared to the corresponding period of 2016.
North America Gaming & Interactive revenue dropped to $69 million in the last quarter of 2017, while revenue of $304 million represents a 7% increase in comparison to the corresponding period of 2016. Sales revenue went up to $34 million.
A 7% rise in revenue was also recorded in Italy, and Sala noted the Scratch & Wind concession was crucial to the Italian success. Growth in South Africa and Greece has led to the IGT’s expansion of the installed base for the second year in a row.
Sala noted the company had also stabilized in the North American installed base starting in the second half of the year and added that the positive trend was expected to continue during this year.
He concluded by saying the improvements had been supported by the new games IGT had brought to the market, such as Fort Knox, the Voice, Sphinx 4D, and stressed the company had been creating excellent momentum with Harley Davidson, The Goonies, and Wheel of Fortune Mega Tower.