IGT
$12.88
International Game Technology
($.50)
(3.74%)
Earnings Details
4th Quarter December 2018
Thursday, March 7, 2019 6:45:00 AM
Tweet Share Watch
Summary

International Game Technology Misses

International Game Technology (IGT) reported 4th Quarter December 2018 earnings of $0.24 per share on revenue of $1.3 billion. The consensus earnings estimate was $0.35 per share on revenue of $1.3 billion. The Earnings Whisper number was $0.37 per share. Revenue fell 5.9% compared to the same quarter a year ago.

International Game Technology is a gaming company specializing in the design, development, manufacturing and marketing of casino-style gaming equipment, systems technology and game content across multiple platforms.

Results
Reported Earnings
$0.24
Earnings Whisper
$0.37
Consensus Estimate
$0.35
Reported Revenue
$1.27 Bil
Revenue Estimate
$1.27 Bil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

International Game Technology PLC Reports Fourth Quarter And Full Year 2018 Results

LONDON, March 7, 2019 /PRNewswire/ -- International Game Technology PLC ("IGT") (NYSE:IGT) today reported financial results for the fourth quarter and full year ended December 31, 2018. Today, at 8:00 a.m. EST, management will host a conference call and webcast to present the fourth quarter and full year results; access details are provided below.

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...

"Our 2018 results are in line with the improved outlook we provided in October. The year was characterized by strong global Lottery performance, resilience in Italy, and progress in North America Gaming," said Marco Sala, CEO of IGT. "We've established solid foundations to build on – securing large, long-term Lottery contracts in key markets and executing a full refresh of our gaming machine cabinet and content portfolio. These efforts will translate into improved free cash flow beginning in 2019."

"We achieved 4% Adjusted EBITDA growth on stable revenue at constant currency and scope in 2018," said Alberto Fornaro, CFO of IGT. "We managed our net debt effectively, while making large upfront payments for a key Lottery license in Italy, investing in long-term North America Lottery contracts, and returning capital to shareholders through dividends. Our outlook for 2019 Adjusted EBITDA of $1.70-$1.76 billion assumes underlying growth for our core Lottery and Gaming businesses."  

Overview of Consolidated Fourth Quarter and Full Year 2018 Results


Quarter Ended
December 31,

Y/Y
Change

Constant
Currency
Change 


2018(1)

2017

(%)

(%)

(In $ millions, unless otherwise noted)





Revenue

1,266

1,346

-6%

-4%

Operating income

41

194

-79%

-76%

Net income/(loss) per diluted share

($0.50)

$0.39

NM


Net debt

7,761

7,319

6%


Adjusted EBITDA

416

452

-8%

-6%

Adjusted operating income

218

268

-19%

-17%

Adjusted net income per diluted share

$0.24

$0.02

NM


















Year Ended
December 31

Y/Y
Change

Constant
Currency
Change 


2018(1)

2017

(%)

(%)

(In $ millions, unless otherwise noted)





Revenue

4,831

4,939

-2%

-3%

Operating income

647

(51)

NM


Net income per diluted share

($0.10)

($5.26)

NM


Net debt

7,761

7,319

6%


Adjusted EBITDA

1,737

1,676

4%

2%

Adjusted operating income

990

1,028

-4%

-6%

Adjusted net income per diluted share

$0.98

$0.86

14%



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.


(1) On January 1, 2018, IGT adopted ASU 2014-09 (Topic 606), Revenue from Contracts with Customers ("ASC 606"). This negatively impacted Revenue in the fourth quarter by $14 million and positively impacted Adjusted EBITDA by $8 million. For the full year, Revenue was negatively impacted by $65 million and Adjusted EBITDA was positively impacted by $15 million. Comparative schedules summarizing the impact on the fourth quarter and full year ended December 31, 2018 Consolidated Statements of Operations are included later in this release.  

Overview of Consolidated Fourth Quarter 2018 Results

Consolidated revenue of $1,266 million, down 4% at constant currency

  • Stable Gaming and Lottery revenue
  • Decline driven by Sports Betting dynamics in the prior year, including exceptionally low payout percentage in Italy and large International product sales
  • $14 million negative impact from ASC 606

Adjusted EBITDA of $416 million, down 6% at constant currency

  • Lower revenue
  • Increased SG&A due to timing differences of certain expense accruals between years

Adjusted operating income was $218 million, a decline of 17% at constant currency

  • Higher depreciation associated with recent Lottery contract wins and extensions, upgrading of Gaming installed base

Interest expense was $108 million compared to $114 million in the prior-year quarter 

Provision for income taxes was $30 million compared to a benefit of $83 million in the prior-year period

  • One-time, non-cash benefit of $104 million related to U.S. tax reform in the prior year

Net loss attributable to IGT was $102 million in the quarter; Adjusted net income attributable to IGT was $48 million

  • Includes non-cash, non-tax-deductible impairment charge of $119 million, reducing the carrying value of the International segment
    • Underlying International growth outlook unchanged
    • Charge has no impact on the Company's operations, cash flow, ability to service debt, compliance with financial covenants, or underlying liquidity

Net loss per diluted share of $0.50; Adjusted net income per diluted share of $0.24

Overview of Consolidated Full Year 2018 Results

Consolidated revenue was $4,831 million, stable at constant currency and scope

  • Constant scope adjusts for the sale of Double Down Interactive, LLC in June 2017
  • Underlying improvement in North America for both Gaming and Lottery
  • Broad-based strength in Italy
  • Lower International revenue
  • $73 million negative impact from reclass of jackpot expense to contra-revenue item under ASC 606

Adjusted EBITDA of $1,737 million, up 4% at constant currency and scope  

  • Stable revenue
  • Optimization of R&D

Adjusted operating income was $990 million, a decline of 3% at constant currency and scope

  • Higher depreciation associated with recent Lottery contract wins and extensions, upgrading of Gaming installed base

Capital Expenditures of $533 million compared to $698 million in the prior year

Cash from operations was $30 million for the full year

  • Includes $878 million (gross) upfront payments for the Italy Scratch & Win license

Cash and cash equivalents were $251 million as of December 31, 2018, compared to $1,057 million as of December 31, 2017

Net debt was $7,761 million as of December 31, 2018, compared to $7,319 million as of December 31, 2017

  • Increase driven by Italy Scratch & Win upfront license payments

Operating Segment Review

North America Gaming & Interactive

Select Financial Data



Constant


Key Performance Indicators



%

Period Ended December 31

Q4 '18

Q4 '17

FX


Period Ended December 31

Q4'18

Q4'17

Change 

Gaming


Total Revenue

273

281

-1%


Installed base (end of period)





Gaming Services

147

167

-12%


    Casino

23,108

22,807

1.3%



Terminal 

101

118

-14%








Social (DDI)

0

0

0%


Machine units shipped






Other

46

49

-5%


   New/Expansion

247

805

-69.3%


Product Sales

126

113

13%


   Replacement 

6,485

4,490

44.4%



Terminal 

96

72

34%


   Total machines shipped

6,732

5,295

27.1%



Other

30

41

-26%


















Other


Total Revenue

2

0

NM







Service Revenue

2

0

NM


















Total


Revenue

275

281

-1%







Operating Income

51

69

-27%






Revenue down slightly to $275 million compared to $281 million in the prior-year quarter

  • Up $9 million, or 3%, after adjusting for $15 million jackpot expense reclass (ASC 606)
  • Product sales revenue up 11% to $126 million
    • 27% increase in Gaming machine units shipped and higher average selling prices
    • Decline in Other product sales primarily driven by higher intellectual property revenue in the prior year
  • Gaming service revenue of $147 million compared to $167 million in the prior year
    • Terminal service revenue stable after adjusting for jackpot expense reclass
    • Installed base increased 301 units on strength of new games and cabinets
    • Yields lower on shift in jurisdictional and machine mix

Operating income of $51 million compared to $69 million in the prior-year quarter

  • Increased depreciation expense
  • Contribution from high-margin intellectual property revenue in the prior year

North America Lottery

Select Financial Data



Constant


Key Performance Indicators



%

Period Ended December 31

Q4 '18

Q4 '17

FX


Period Ended December 31

Q4'18

Q4'17

Change 

Gaming


Total Revenue

40

42

-3%


Installed base (end of period)





Gaming Services

40

38

8%


    VLT - Government Sponsored

14,939

15,294

-2.3%



Terminal 

25

24

2%








Other

16

13

18%


Lottery same-store revenue growth





Product Sales

0

4

NM


   Instants & draw games



5.0%









   Multistate Jackpots



143.1%

Lottery


Total Revenue

268

262

2%


   Total lottery same-store revenue growth


21.3%


Lottery Services

255

232

10%








FMC

193

165

17%








LMA

29

36

-19%








Other Services

33

32

5%







Product Sales

13

30

-56%








Terminal 

0

2

NM








Systems/Other

13

28

-53%


















Total


Revenue

309

304

2%







Operating Income

79

66

21%






Revenue increased 2% to $309 million

  • Lottery service revenue up 10% to $255 million
    • Significant increase in Multistate Jackpots driven by $1.5 billion Mega Millions jackpot
    • 5.0% same-store revenue growth for instant tickets and draw-based games
    • Lower LMA revenue (reimbursable expenses)
  • Lottery product sales of $13 million compared to $30 million in prior year
    • Prior year benefitted from higher lottery terminal sales and a large Canadian VLT central system sale

Operating income increased 21% to $79 million

  • Significant profit flow-through on robust same-store revenue growth
  • Partly offset by higher depreciation related to recent contract wins and extensions

International

Select Financial Data



Constant


Key Performance Indicators



%

Period Ended December 31

Q4 '18

Q4 '17

FX


Period Ended December 31

Q4'18

Q4'17

Change 

Gaming


Total Revenue

127

149

-11%


Installed base (end of period)





Gaming Services

34

55

-33%


    Casino

10,636

12,818

-17.0%



Terminal 

13

13

16%


    VLT - Government Sponsored

4,269

2,725

56.7%



Other

21

42

-48%


   Total installed base

14,905

15,543

-4.1%


Product Sales

94

94

2%








Terminal 

64

73

-11%


Machine units shipped






Other

30

21

47%


   New/Expansion

528

544

-2.9%









   Replacement 

4,730

5,021

-5.8%

Lottery


Total Revenue

76

99

-20%


   Total machines shipped

5,258

5,565

-5.5%


Lottery Services

72

80

-8%








FMC

56

55

7%


Lottery same-store revenue growth






Other Services

16

25

-38%


   Instants & draw games



4.1%


Product Sales

4

19

-75%


   Multistate Jackpots



8.6%



Systems/Other

4

19

-75%


   Total lottery same-store revenue growth


4.4%













Other


Total Revenue

18

32

-41%







Service Revenue

17

20

-4%







Product Sales

0

12

NM


















Total


Revenue

221

280

-18%







Operating Income

28

72

-57%






Revenue of $221 million compared to $280 million in the prior-year period

  • Comparisons reflect significant contract-specific milestones achieved in prior year
  • Lottery service revenue of $72 million compared to $80 million in the prior year
    • Same-store revenue growth of 4.4% driven by instant tickets, draw-based games, and jackpot games
    • Prior-year benefit from contract milestone-driven revenue
  • Lottery product sales reflect higher software sales in the prior year
  • Gaming service revenue of $34 million compared to $55 million in the prior year
    • Prior-year benefit from contract milestone-driven revenue
    • Installed base decline includes 1,484-unit conversion sale, partly offset by an increase in Greece VLTs
    • Jackpot expense reclass of $2 million
  • Gaming product sales revenue stable at $94 million
    • Terminal revenue impacted by lower unit shipments to Latin America and Europe
    • Other product sales increased on higher software sales

Operating income of $28 million compared to $72 million in the prior-year period

  • Lower revenue with less favorable mix
  • Increased SG&A due to timing differences of certain expense accruals between years

Italy

Select Financial Data



Constant


Key Performance Indicators



%

Period Ended December 31

Q4 '18

Q4 '17

FX


Period Ended December 31

Q4'18

Q4'17

Change 

Gaming


Total Revenue

192

193

4%


(In € millions, except machines)





Gaming Services

191

192

4%


Lottery






Terminal 

174

176

3%


Lotto wagers

2,089

1,951

7.1%



Other

18

16

12%


   10eLotto

1,495

1,386

7.8%


Product Sales

0

0

0%


   Core

468

508

-7.9%









   Late Numbers

78

57

37.0%

Lottery


Total Revenue

202

198

6%


   MillionDAY

49

-

NM


Lottery Services

202

198

6%








FMC

248

246

5%


Scratch & Win Wagers

2,383

2,344

1.7%



Other Services

(46)

(48)

0%







Product Sales

0

0

0%


Italy lottery revenue growth



6.0%













Other


Total Revenue

68

90

-22%


Gaming





Service Revenue

68

90

-22%


Installed base (end of period)





Product Sales

0

0

0%


   VLT - Operator (B2C)

10,991

10,985

0.1%









   VLT - Supplier (B2B)

8,058

8,592

-6.2%

Total


Revenue

462

481

0%


   AWP

42,928

56,590

-24.1%


Operating Income

118

115

7%


   Total Installed Base

61,977

76,167

-18.6%





















Wagers












   VLT - Operator (B2C)

1,564

1,428

9.5%









   AWP

997

1,032

-3.4%









   Interactive Wagers (Gaming)

492

461

6.8%





















Other












   Sports Betting Wagers (1)

273

271

0.6%









   Sports Betting Payout (%) (1)

84.2%

76.2%

8.0 pp





















(1)Includes Virtual Wagers and Pools & Horses


Revenue of $462 million compared to $481 million in the prior year, stable at constant currency

  • Lottery service revenue up 6% at constant currency
    • Lotto wagers rose 7.1% on continued strength in 10eLotto and contribution from MillionDAY
    • Scratch & Win wagers rose 1.7% on relaunch of Multiplier tickets
  • Gaming service revenue up 4% at constant currency
    • Strong improvement in machine productivity
    • Increase in wagers helped mitigate state-mandated reductions in AWP units, incremental taxes, and certain regional restrictions
  • Sports Betting wagers stable, payout of 84.2% reflects a more normalized level

Operating income increased 7% at constant currency to $118 million

  • Broad-based wager growth with strong profit flow-through, especially for Lotteries
  • Partly offset by higher Sports Betting payout and increased taxes on gaming machines

Other Developments

The Company's Board of Directors declared a quarterly cash dividend of $0.20 per ordinary share

  • Record date of March 21, 2019
  • Payment date of April 4, 2019

Outlook

  • 2019 Adjusted EBITDA $1.70 - $1.76 billion
  • Capital expenditures of $450 - $550 million
  • Assumes a EUR/USD exchange rate of 1.15

Conference Call and Webcast

March 7, 2019, 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 7055579
  • 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 7055579

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 2018 are calculated using the same foreign exchange rates as the corresponding 2017 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 enable players to experience their favorite games across all channels and regulated segments, from Gaming Machines and Lotteries to Digital 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, 2017 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.

Contact:
Angela Geryak Wiczek, 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
Giuliano Frosini, +39 06 51899584; for Italian media inquiries

 

International Game Technology PLC

Consolidated Statements of Operations

($ and shares in thousands, except per share data)

Unaudited






 For the three months ended 


 December 31, 


2018


2017





Service revenue

1,029,031


1,073,079

Product sales

237,101


272,591

Total revenue

1,266,132


1,345,670





Cost of services

638,105


686,802

Cost of product sales

157,965


176,375

Selling, general and administrative

238,654


208,522

Research and development

64,782


70,946

Restructuring expense

6,857


9,170

Impairment loss

118,877


-

Transaction expense (income), net

1


(58)

Total operating expenses

1,225,241


1,151,757





Operating income

40,891


193,913





Interest income

4,632


2,444

Interest expense

(108,298)


(114,405)

Foreign exchange gain (loss), net

32,096


(59,228)

Other expense, net

(9,040)


(146)

Total non-operating expenses

(80,610)


(171,335)





(Loss) income before provision for (benefit from) income taxes

(39,719)


22,578





Provision for (benefit from) income taxes

30,337


(83,346)





Net (loss) income

(70,056)


105,924





Less: Net income attributable to non-controlling interests

31,943


26,195





Net (loss) income attributable to IGT PLC

(101,999)


79,729









Net (loss) income attributable to IGT PLC per common share - basic

(0.50)


0.39

Net (loss) income attributable to IGT PLC per common share - diluted

(0.50)


0.39





Weighted-average shares - basic

204,307


203,513

Weighted-average shares - diluted

204,307


204,104

 

International Game Technology PLC

Consolidated Statements of Operations

($ and shares in thousands, except per share data)

Unaudited






 For the year ended 


 December 31, 


2018


2017





Service revenue

4,046,314


4,136,556

Product sales

784,942


802,403

Total revenue

4,831,256


4,938,959





Cost of services

2,450,658


2,553,083

Cost of product sales

491,030


579,431

Selling, general and administrative

844,059


816,093

Research and development

263,279


313,088

Restructuring expense

14,781


39,876

Impairment loss

120,407


715,220

Transaction expense (income), net

51


(26,740)

Total operating expenses

4,184,265


4,990,051





Operating income (loss)

646,991


(51,092)





Interest income

14,231


10,436

Interest expense

(431,618)


(458,899)

Foreign exchange gain (loss), net

129,051


(443,977)

Other expense, net

(54,607)


(33,393)

Total non-operating expenses

(342,943)


(925,833)





Income (loss) before provision for (benefit from) income taxes

304,048


(976,925)





Provision for (benefit from) income taxes

189,401


(29,414)





Net income (loss)

114,647


(947,511)





Less: Net income attributable to non-controlling interests

135,997


121,065





Net loss attributable to IGT PLC

(21,350)


(1,068,576)









Net loss attributable to IGT PLC per common share - basic

(0.10)


(5.26)

Net loss attributable to IGT PLC per common share - diluted

(0.10)


(5.26)





Weighted-average shares - basic

204,083


203,130

Weighted-average shares - diluted

204,083


203,130

 

International Game Technology PLC

Consolidated Balance Sheets

($ thousands)

Unaudited






December 31,


December 31,


2018


2017

Assets




Current assets:




Cash and cash equivalents

250,669


1,057,418

Restricted cash and cash equivalents

261,108


248,012

Trade and other receivables, net

949,085


937,854

Inventories

282,698


319,545

Other current assets

504,061


407,520

Income taxes receivable

39,075


94,168

Total current assets

2,286,696


3,064,517

Systems, equipment and other assets related to contracts, net

1,404,426


1,434,194

Property, plant and equipment, net

185,349


193,723

Goodwill

5,580,227


5,723,815

Intangible assets, net

2,044,723


2,273,460

Other non-current assets

2,108,964


2,427,953

Deferred income taxes

38,117


41,546

Total non-current assets

11,361,806


12,094,691

Total assets

13,648,502


15,159,208





Liabilities, redeemable non-controlling interests, and shareholders' equity




Current liabilities:




Accounts payable

1,142,371


1,240,753

Other current liabilities

816,722


1,780,875

Current portion of long-term debt

-


599,114

Short-term borrowings

34,822


-

Income taxes payable

8,209


55,935

Total current liabilities

2,002,124


3,676,677

Long-term debt, less current portion

7,977,267


7,777,445

Deferred income taxes

446,083


491,460

Income taxes payable

25,654


55,665

Other non-current liabilities

445,445


446,113

Total non-current liabilities

8,894,449


8,770,683

Total liabilities

10,896,573


12,447,360

Commitments and contingencies




Redeemable non-controlling interests and shareholders' equity

2,751,929


2,711,848

Total liabilities, redeemable non-controlling interests, and shareholders' equity

13,648,502


15,159,208

 

International Game Technology PLC

Consolidated Statements of Cash Flows

($ thousands)

Unaudited






 For the year ended 



 December 31,



2018


2017

Cash flows from operating activities





Net income (loss)


114,647


(947,511)

Adjustments to reconcile net income (loss) to net cash provided by operating activities:



Depreciation 


432,899


401,085

Amortization 


272,561


401,355

Service revenue amortization


217,341


209,774

Impairment loss


120,407


715,220

Loss on extinguishment of debt


54,423


25,733

Stock-based compensation expense


33,086


4,704

Debt issuance cost amortization


22,042


23,217

Deferred income tax provision


(34,494)


(296,265)

Foreign exchange (gain) loss, net


(129,051)


443,977

Gain on sale of Double Down Interactive LLC


-


(51,348)

Other non-cash costs, net


29,550


25,768

Changes in operating assets and liabilities:





Trade and other receivables


(54,356)


45,465

Inventories


12,556


51,406

Upfront Italian license fees


(878,055)


(244,698)

Accounts payable


(51,990)


(3,031)

Other assets and liabilities


(131,940)


(141,463)

Net cash provided by operating activities


29,626


663,388






Cash flows from investing activities





Capital expenditures


(533,052)


(698,010)

Proceeds from sale of assets


19,243


167,452

Proceeds from sale of Double Down Interactive LLC, net of cash divested


-


823,788

Other


2,272


2,336

Net cash (used in) provided by investing activities


(511,537)


295,566






Cash flows from financing activities





Principal payments on long-term debt


(1,899,888)


(1,754,259)

Dividends paid


(163,236)


(162,528)

Dividends paid - non-controlling interests


(126,926)


(57,908)

Return of capital - non-controlling interests


(85,121)


(84,391)

Payments in connection with the extinguishment of debt


(49,976)


(38,832)

Debt issuance costs paid


(17,033)


(16,378)

Net receipts from (payments of) financial liabilities


7,123


(150)

Net proceeds from short-term borrowings


34,822


-

Capital increase - non-controlling interests


321,584


148,468

Proceeds from long-term debt


1,687,761


1,762,270

Other


(20,655)


(43,264)

Net cash used in financing activities


(311,545)


(246,972)






Net (decrease) increase in cash and cash equivalents, and restricted cash


(793,456)


711,982

Effect of exchange rate changes on cash and cash equivalents, and restricted cash


(197)


52,132

Cash and cash equivalents, and restricted cash at the beginning of the period


1,305,430


541,316

Cash and cash equivalents, and restricted cash at the end of the period


511,777


1,305,430











Supplemental Cash Flow Information:





Interest paid


(445,698)


(417,110)

Income taxes paid


(239,831)


(296,386)

 

International Game Technology PLC

Net Debt

($ thousands)

Unaudited








December 31,


December 31,



2018


2017











7.500% Senior Secured Notes due July 2019


-


148,231

4.125% Senior Secured Notes due February 2020


499,167


833,655

5.625% Senior Secured Notes due February 2020


-


595,767

4.750% Senior Secured Notes due March 2020


438,252


585,171

5.500% Senior Secured Notes due June 2020


27,519


125,709

6.250% Senior Secured Notes due February 2022


1,469,609


1,470,075

4.750% Senior Secured Notes due February 2023


964,730


1,008,601

5.350% Senior Secured Notes due October 2023


60,983


61,082

3.500% Senior Secured Notes due July 2024


567,179


-

6.500% Senior Secured Notes due February 2025


1,088,385


1,086,913

6.250% Senior Secured Notes due January 2027


742,667


-

Senior Secured Notes, long-term


5,858,491


5,915,204






Revolving Credit Facilities due July 2021


413,381


76,880

Term Loan Facilities due January 2023


1,705,395


1,785,361

Long-term debt, less current portion


7,977,267


7,777,445






6.625% Senior Secured Notes due February 2018


-


599,114

Current portion of long-term debt 


-


599,114






Short-term borrowings


34,822


-

Total debt


8,012,089


8,376,559






Less: Cash and cash equivalents


250,669


1,057,418






Net debt


7,761,420


7,319,141


Note: Net debt is a non-GAAP financial measure

 

International Game Technology PLC

Adjusted EBITDA and Free Cash Flow

Reconciliations of Non-GAAP Financial Measures

($ thousands)

Unaudited













For the three months ended



December 31,



2018


2017






Net (loss) income


(70,056)


105,924

Provision for (benefit from) income taxes


30,337


(83,346)

Non-operating expenses


80,610


171,335

Depreciation 


120,696


111,997

Impairment loss


118,877


-

Amortization


68,305


83,366

Service revenue amortization


52,389


54,456

Stock-based compensation expense


8,142


(398)

Restructuring expense


6,857


9,170

Transaction expense (income), net


1


(58)

Non-cash purchase accounting (excluding D&A)


(201)


(223)

Adjusted EBITDA


415,957


452,223
















Cash flows from operating activities


(219,686)


266,451

Capital expenditures


(158,739)


(145,841)

Free Cash Flow


(378,425)


120,610

 

International Game Technology PLC

Adjusted EBITDA and Free Cash Flow

Reconciliations of Non-GAAP Financial Measures

($ thousands)

Unaudited













For the year ended



December 31,



2018


2017






Net income (loss)


114,647


(947,511)

Provision for (benefit from) income taxes


189,401


(29,414)

Non-operating expenses


342,943


925,833

Depreciation 


432,899


401,085

Amortization


272,561


401,355

Service revenue amortization


217,341


209,774

Impairment loss


120,407


715,220

Stock-based compensation expense


33,086


4,704

Restructuring expense


14,781


39,876

Transaction expense (income), net


51


(26,740)

Non-cash purchase accounting (excluding D&A)


(867)


(736)

Bad debt recovery


-


(17,858)

Adjusted EBITDA


1,737,250


1,675,588
















Cash flows from operating activities


29,626


663,388

Capital expenditures


(533,052)


(698,010)

Free Cash Flow


(503,426)


(34,622)

 

International Game Technology PLC

ASC 606 - Revenue Recognition Impact

Consolidated Statements of Operations

($ thousands, except per share data)

Unaudited










Q4 2018



Under Prior
Accounting


Revenue
Recognition
Adjustment


As Adjusted








Revenue


1,280,449


(14,317)


1,266,132

Operating expenses


(1,247,420)


22,179


(1,225,241)

Provision for income taxes


(28,703)


(1,634)


(30,337)

Net loss attributable to IGT PLC


(108,227)


6,228


(101,999)








Net loss attributable to IGT PLC per common share - basic


(0.53)


0.03


(0.50)

Net loss attributable to IGT PLC per common share - diluted


(0.53)


0.03


(0.50)

















Q4 2018 YTD



Under Prior
Accounting


Revenue
Recognition
Adjustment


As Adjusted








Revenue


4,896,300


(65,044)


4,831,256

Operating expenses


(4,264,321)


80,056


(4,184,265)

Provision for income taxes


(187,897)


(1,504)


(189,401)

Net loss attributable to IGT PLC


(34,858)


13,508


(21,350)








Net loss attributable to IGT PLC per common share - basic


(0.17)


0.07


(0.10)

Net loss attributable to IGT PLC per common share - diluted


(0.17)


0.07


(0.10)

 

 International Game Technology PLC 

 Consolidated Statement of Operations 

 Reconciliation of Non-GAAP Financial Measures 

 ($ and shares in thousands, except per share data) 

 Unaudited 





























Quarter to date


Adjustments


Quarter to date



December 2018






Impairment/


Transaction


December 2018



As


Purchase


Foreign


Restructuring


and Refinancing


As



Reported


Accounting


Exchange


Expense


Expense, net


Adjusted














 Total revenue 


1,266,132


(183)


-


-


-


1,265,949














 Cost of services 


638,105


(20,548)


-


-


-


617,557

 Cost of product sales 


157,965


(3,955)


-


-


-


154,010

 Selling, general and administrative 


238,654


(27,018)


-


-


-


211,636

 Research and development 


64,782


(218)


-


-


-


64,564

 Restructuring expense 


6,857


-


-


(6,857)


-


-

 Impairment loss 


118,877


-


-


(118,877)


-


-

 Transaction expense, net 


1


-


-


-


(1)


-

 Total operating expenses 


1,225,241


(51,739)


-


(125,734)


(1)


1,047,767














 Operating income 


40,891


51,556


-


125,734


1


218,182














 Interest expense, net 


(103,666)


27


-


-


-


(103,639)

 Foreign exchange gain, net 


32,096


-


(32,096)


-


-


-

 Other expense, net 


(9,040)


(127)


-


-


5,004


(4,163)

 Total non-operating expenses 


(80,610)


(100)


(32,096)


-


5,004


(107,802)














 (Loss) income before provision for income taxes 


(39,719)


51,456


(32,096)


125,734


5,005


110,380














 Provision for income taxes (a) 


30,337


7,082


(10,124)


1,764


1,095


30,154














 Net (loss) income 


(70,056)


44,374


(21,972)


123,970


3,910


80,226














 Less: Net income attributable to non-controlling interests 


31,943


25


-


-


-


31,968














 Net (loss) income attributable to IGT PLC 


(101,999)


44,349


(21,972)


123,970


3,910


48,258














 Net (loss) income per common share - diluted 


(0.50)










0.24

 Weighted-average shares - diluted (b) 


204,307










204,328

























 (a) Adjustments for income taxes are 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 per share data) 

 Unaudited 





























 Year to date 


Adjustments


 Year to date 



December 2018






Impairment/


Transaction


December 2018



As


Purchase


Foreign


Restructuring


and Refinancing


As



Reported


Accounting


Exchange


Expense


Expense, net


Adjusted














 Total revenue 


4,831,256


(723)


-


-


-


4,830,533














 Cost of services 


2,450,658


(84,005)


-


-


-


2,366,653

 Cost of product sales 


491,030


(15,690)


-


-


-


475,340

 Selling, general and administrative 


844,059


(107,620)


-


-


-


736,439

 Research and development 


263,279


(904)


-


-


-


262,375

 Restructuring expense 


14,781


-


-


(14,781)


-


-

 Impairment loss 


120,407


-


-


(120,407)


-


-

 Transaction expense, net 


51


-


-


-


(51)


-

 Total operating expenses 


4,184,265


(208,219)


-


(135,188)


(51)


3,840,807














 Operating income 


646,991


207,496


-


135,188


51


989,726














 Interest expense, net 


(417,387)


1,563


-


-


-


(415,824)

 Foreign exchange gain, net 


129,051


-


(129,051)


-


-


-

 Other expense, net 


(54,607)


(2,311)


-


-


54,463


(2,455)

 Total non-operating expenses 


(342,943)


(748)


(129,051)


-


54,463


(418,279)














 Income before provision for income taxes 


304,048


206,748


(129,051)


135,188


54,514


571,447














 Provision for income taxes (a) 


189,401


44,183


(3,494)


3,593


1,097


234,780














 Net income 


114,647


162,565


(125,557)


131,595


53,417


336,667














 Less: Net income attributable to non-controlling interests 


135,997


102


-


-


-


136,099














 Net (loss) income attributable to IGT PLC 


(21,350)


162,463


(125,557)


131,595


53,417


200,568














 Net (loss) income per common share - diluted 


(0.10)










0.98

 Weighted-average shares - diluted (b) 


204,083










204,363

























 (a) Adjustments for income taxes are 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 per share data) 

 Unaudited 





























Quarter to date


Adjustments


Quarter to date



December 2017










December 2017



As


Purchase


Foreign


Restructuring


Transaction


As



Reported


Accounting


Exchange


Expense


Expense, net


Adjusted














 Total revenue 


1,345,670


(182)


-


-


-


1,345,488














 Cost of services 


686,802


(27,563)


-


-


-


659,239

 Cost of product sales 


176,375


(10,454)


-


-


-


165,921

 Selling, general and administrative 


208,522


(27,183)


-


-


-


181,339

 Research and development 


70,946


(230)


-


-


-


70,716

 Restructuring expense 


9,170


-


-


(9,170)


-


-

 Transaction income, net 


(58)


-


-


-


58


-

 Total operating expenses 


1,151,757


(65,430)


-


(9,170)


58


1,077,215














 Operating income 


193,913


65,248


-


9,170


(58)


268,273














 Interest expense, net 


(111,961)


513


-


-


-


(111,448)

 Foreign exchange loss, net 


(59,228)


-


59,228


-


-


-

 Other expense, net 


(146)


1


-


-


(8)


(153)

 Total non-operating expenses 


(171,335)


514


59,228


-


(8)


(111,601)














 Income before (benefit from) provision for income taxes 


22,578


65,762


59,228


9,170


(66)


156,672














 (Benefit from) provision for income taxes (a) (b) (c) 


(83,346)


267,714


(60,593)


2,887


(2)


126,660














 Net income 


105,924


(201,952)


119,821


6,283


(64)


30,012














 Less: Net income attributable to non-controlling interests 


26,195


25


-


-


-


26,220














 Net income attributable to IGT PLC 


79,729


(201,977)


119,821


6,283


(64)


3,792














 Net income per common share - diluted 


0.39










0.02

 Weighted-average shares - diluted 


204,104










204,104



























(a) Adjustments for income taxes are determined based on the statutory tax rate in effect in the respective jurisdiction where the adjustment originated.














(b) As Reported includes a net $103.6 million one-time, non-cash income tax benefit related to the Tax Cuts and Jobs Act of 2017 (the "Tax Act") composed of (i) a $64.4 million non-cash income tax expense for the restatement of deferred tax assets and a $239.2 million non-cash income tax benefit for the restatement of deferred tax liabilities related to Purchase Accounting, both driven by the decrease in the income tax rate from 35% to 21% and (ii) a $71.2 million non-cash income tax expense in 2017 associated with unremitted foreign earnings. Separate from the Tax Act, As Reported includes a $73.3 million one-time, non-cash tax expense for the write-off of a deferred tax asset related primarily to unrealized foreign exchange losses.














(c) As Adjusted excludes the $239.2 million non-cash income tax benefit for the restatement of deferred tax liabilities related to Purchase Accounting and the $73.3 million one-time, non-cash tax expense for the write-of of a deferred tax asset related primarily to unrealized foreign exchange losses.

 

 International Game Technology PLC 

 Consolidated Statement of Operations 

 Reconciliation of Non-GAAP Financial Measures 

 ($ and shares in thousands, except per share data) 

 Unaudited 





























 Year to date 


Adjustments


 Year to date 



December 2017






Impairment/


Transaction


December 2017



As


Purchase


Foreign


Restructuring


and Refinancing


As



Reported


Accounting


Exchange


Expense


Expense, net


Adjusted














 Total revenue 


4,938,959


(722)


-


-


-


4,938,237














 Cost of services 


2,553,083


(145,221)


-


-


-


2,407,862

 Cost of product sales 


579,431


(87,715)


-


-


-


491,716

 Selling, general and administrative 


816,093


(117,460)


-


-


-


698,633

 Research and development 


313,088


(656)


-


-


-


312,432

 Restructuring expense 


39,876


-


-


(39,876)


-


-

 Impairment loss 


715,220


-


-


(715,220)


-


-

 Transaction income, net 


(26,740)


-


-


-


26,740


-

 Total operating expenses 


4,990,051


(351,052)


-


(755,096)


26,740


3,910,643














 Operating (loss) income 


(51,092)


350,330


-


755,096


(26,740)


1,027,594














 Interest expense, net 


(448,463)


2,928


-


-


-


(445,535)

 Foreign exchange loss, net 


(443,977)


-


443,977


-


-


-

 Other (expense) income, net 


(33,393)


1,568


-


-


35,420


3,595

 Total non-operating expenses 


(925,833)


4,496


443,977


-


35,420


(441,940)














 (Loss) income before (benefit from) provision for income taxes 


(976,925)


354,826


443,977


755,096


8,680


585,654














 (Benefit from) provision for income taxes (a) (b) (c) 


(29,414)


368,780


26,559


12,019


(88,161)


289,783














 Net (loss) income 


(947,511)


(13,954)


417,418


743,077


96,841


295,871














 Less: Net income attributable to non-controlling interests 


121,065


102


-


-


-


121,167














 Net (loss) income attributable to IGT PLC 


(1,068,576)


(14,056)


417,418


743,077


96,841


174,704














 Net (loss) income per common share - diluted 


(5.26)










0.86

 Weighted-average shares - diluted (d) 


203,130










203,504



























(a) Adjustments for income taxes are determined based on the statutory tax rate in effect in the respective jurisdiction where the adjustment originated.














(b) As Reported includes a net $103.6 million one-time, non-cash income tax benefit related to the Tax Cuts and Jobs Act of 2017 (the "Tax Act") composed of (i) a $64.4 million non-cash income tax expense for the restatement of deferred tax assets and a $239.2 million non-cash income tax benefit for the restatement of deferred tax liabilities related to Purchase Accounting, both driven by the decrease in the income tax rate from 35% to 21% and (ii) a $71.2 million non-cash income tax expense in 2017 associated with unremitted foreign earnings. Separate from the Tax Act, As Reported includes a $73.3 million one-time, non-cash tax expense for the write-off of a deferred tax asset related primarily to unrealized foreign exchange losses.














(c) As Adjusted excludes the $239.2 million non-cash income tax benefit for the restatement of deferred tax liabilities related to Purchase Accounting and the $73.3 million one-time, non-cash tax expense for the write-of of a deferred tax asset related primarily to unrealized foreign exchange losses.














(d) 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




Select Financial Data



Constant


Key Performance Indicators



%

Period Ended December 31

Q4 '18

Q4 '17

FX


Period Ended December 31

Q4'18

Q4'17

Change 

Gaming


Total Revenue

632

664

-2%


Installed base (end of period)





Gaming Services

413

452

-6%


   Casino

33,744

35,625

-5.3%



Terminal 

312

331

-3%


   VLT - Government Sponsored (ex-Italy)

19,208

18,019

6.6%



Social (DDI)

0

0

0%


   VLT - Italy Supplier (B2B)

8,058

8,592

-6.2%



Other

100

121

-15%


   Total installed base

61,010

62,236

-2.0%


Product Sales

220

212

6%


   Yield 

$26.90

$27.49

-2.1%



Terminal 

159

146

12%


      (average revenue per unit per day)






Other

60

66

-7%














   Additional Italian Network Details:




Lottery


Total Revenue

547

559

0%


   VLT - Operator (B2C)

10,991

10,985

0.1%


Lottery Services

530

511

6%


   AWP

42,928

56,590

-24.1%



FMC

497

466

9%








LMA

29

36

-19%


Machine units shipped






Other Services

3

9

-79%


   New/Expansion

775

1,349

-42.6%


Product Sales

17

48

-63%


   Replacement 

11,215

9,511

17.9%



Terminal 

(0)

2

NM


   Total machines shipped

11,990

10,860

10.4%



Systems/Other

17

47

-62%














Global lottery same-store revenue growth



Other


Total Revenue

87

122

-26%


   Instants & draw games



4.7%


Service Revenue

87

110

-18%


   Multistate Jackpots



122.7%


Product Sales

0

12

NM


   Total lottery same-store revenue growth (ex-Italy)

16.9%









   Italy lottery revenue growth



6.0%

Consolidated


Revenue

1,266

1,346

-4%







Operating Income:











Segment Total

277

322

-12%








Purchase Accounting

(170)

(65)

-160%








Corporate Support

(67)

(63)

-10%








Total

41

194

-76%






Full Year Comparisons by Segment:

NORTH AMERICA GAMING & INTERACTIVE




Select Financial Data



Constant


Key Performance Indicators



%

Period Ended December 31

2018

2017

FX


Period Ended December 31

2018

2017

Change 

Gaming


Total Revenue

1,001

1,158

-13%


Installed base (end of period)





Gaming Services

622

781

-20%


    Casino

23,108

22,807

1.3%



Terminal 

420

488

-14%








Social (DDI)

0

111

-100%


Machine units shipped






Other

202

181

11%


   New/Expansion

3,917

4,099

-4.4%


Product Sales

379

377

1%


   Replacement 

14,922

14,030

6.4%



Terminal 

262

244

8%


   Total machines shipped

18,839

18,129

3.9%



Other

117

133

-12%


















Other


Total Revenue

2

(0)

NM







Service Revenue

2

(0)

NM


















Total


Revenue

1,003

1,158

-13%







Operating Income

219

279

-21%






 

NORTH AMERICA LOTTERY









Select Financial Data



Constant


Key Performance Indicators



%

Period Ended December 31

2018

2017

FX


Period Ended December 31

2018

2017

Change 

Gaming


Total Revenue

154

162

-5%


Installed base (end of period)





Gaming Services

153

150

2%


    VLT - Government Sponsored

14,939

15,294

-2.3%



Terminal 

100

99

0%








Other

54

50

7%


Lottery same-store revenue growth





Product Sales

0

13

-97%


   Instants & draw games



5.0%









   Multistate Jackpots



34.0%

Lottery


Total Revenue

1,038

1,023

1%


   Total lottery same-store revenue growth



8.9%


Lottery Services

958

943

2%








FMC

697

660

6%








LMA

129

157

-18%








Other Services

131

126

4%







Product Sales

80

80

1%








Terminal 

24

4

NM








Systems/Other

57

76

-25%


















Total


Revenue

1,192

1,185

1%







Operating Income

297

289

3%






 

INTERNATIONAL









Select Financial Data



Constant


Key Performance Indicators



%

Period Ended December 31

2018

2017

FX


Period Ended December 31

2018

2017

Change 

Gaming


Total Revenue

417

472

-10%


Installed base (end of period)





Gaming Services

140

197

-27%


    Casino

10,636

12,818

-17.0%



Terminal 

54

51

11%


    VLT - Government Sponsored

4,269

2,725

56.7%



Other

86

146

-41%


   Total installed base

14,905

15,543

-4.1%


Product Sales

277

275

2%








Terminal 

193

200

-2%


Machine units shipped






Other

84

75

12%


   New/Expansion

1,880

1,756

7.1%









   Replacement 

11,820

12,218

-3.3%

Lottery


Total Revenue

329

323

1%


   Total machines shipped

13,700

13,974

-2.0%


Lottery Services

283

288

-2%








FMC

222

206

7%


Lottery same-store revenue growth






Other Services

61

81

-25%


   Instants & draw games



3.6%


Product Sales

46

35

33%


   Multistate Jackpots



-1.4%



Systems/Other

46

35

33%


   Total lottery same-store revenue growth



3.3%













Other


Total Revenue

74

94

-21%







Service Revenue

73

72

1%







Product Sales

2

22

-93%


















Total


Revenue

820

889

-7%







Operating Income

142

164

-13%






 

ITALY










Select Financial Data



Constant


Key Performance Indicators



%

Period Ended December 31

2018

2017

FX


Period Ended December 31

2018

2017

Change 

Gaming


Total Revenue

734

707

0%


(In € millions, except machines)





Gaming Services

733

706

0%


Lottery






Terminal 

665

644

0%


Lotto wagers

8,017

7,481

7.2%



Other

68

62

6%


   10eLotto

5,728

5,160

11.0%


Product Sales

1

1

-21%


   Core

1,877

2,011

-6.7%









   Late Numbers

227

310

-26.9%

Lottery


Total Revenue

793

721

6%


   MillionDAY

185

-

NM


Lottery Services

793

721

6%








FMC

991

912

5%


Scratch & Win Wagers

9,207

9,065

1.6%



Other Services

(198)

(191)

0%







Product Sales

0

0

0%


Italy lottery revenue growth



6.0%













Other


Total Revenue

288

277

0%


Gaming





Service Revenue

288

277

0%


Installed base (end of period)





Product Sales

0

0

0%


   VLT - Operator (B2C)

10,991

10,985

0.1%









   VLT - Supplier (B2B)

8,058

8,592

-6.2%

Total


Revenue

1,815

1,705

3%


   AWP

42,928

56,590

-24.1%


Operating Income

541

479

8%


   Total Installed Base

61,977

76,167

-18.6%





















Wagers












   VLT - Operator (B2C)

5,838

5,543

5.3%









   AWP

3,717

3,949

-5.9%









   Interactive Wagers (Gaming)

1,890

1,745

8.3%





















Other












   Sports Betting Wagers (1)

988

959

3.1%









   Sports Betting Payout (%) (1)

82.4%

82.7%

-0.3 pp





















(1)Includes Virtual Wagers and Pools & Horses


 

INTERNATIONAL GAME TECHNOLOGY PLC




Select Financial Data



Constant


Key Performance Indicators



%

Period Ended December 31

2018

2017

FX


Period Ended December 31

2018

2017

Change 

Gaming


Total Revenue

2,306

2,501

-8%


Installed base (end of period)





Gaming Services

1,649

1,836

-11%


   Casino

33,744

35,625

-5.3%



Terminal 

1,239

1,284

-5%


   VLT - Government Sponsored (ex-Italy)

19,208

18,019

6.6%



Social (DDI)

0

111

-100%


   VLT - Italy Supplier (B2B)

8,058

8,592

-6.2%



Other

410

440

-7%


   Total installed base

61,010

62,236

-2.0%


Product Sales

657

665

-1%


   Yield 

$ 27.72

$ 29.26

-5.3%



Terminal 

455

444

3%


      (average revenue per unit per day)






Other

202

222

-9%














   Additional Italian Network Details:




Lottery


Total Revenue

2,161

2,067

3%


   VLT - Operator (B2C)

10,991

10,985

0.1%


Lottery Services

2,034

1,952

3%


   AWP

42,928

56,590

-24.1%



FMC

1,910

1,778

5%








LMA

129

157

-18%


Machine units shipped






Other Services

(4)

17

-80%


   New/Expansion

5,797

5,855

-1.0%


Product Sales

127

115

11%


   Replacement 

26,742

26,248

1.9%



Terminal 

25

4

NM


   Total machines shipped

32,539

32,103

1.4%



Systems/Other

102

111

-8%














Global lottery same-store revenue growth




Other


Total Revenue

364

371

-5%


   Instants & draw games



4.8%


Service Revenue

363

349

1%


   Multistate Jackpots



28.5%


Product Sales

2

22

-93%


   Total lottery same-store revenue growth (ex-Italy)


7.6%









   Italy lottery revenue growth



6.0%

Consolidated


Revenue

4,831

4,939

-3%







Operating Income:











Segment Total

1,199

1,210

-3%








Purchase Accounting

(325)

(1,064)

69%








Corporate Support

(226)

(197)

-14%








Total

647

(51)







 

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/international-game-technology-plc-reports-fourth-quarter-and-full-year-2018-results-300808431.html

SOURCE International Game Technology PLC