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International Game Technology PLC Reports Fourth Quarter And Full Year 2018 Results
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2018 full year net loss of $21 million includes $120 million of non-cash impairment charges; 2018 Adjusted EBITDA of $1,737 million within expected range when normalized for FX
International Game Technology PLC 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.
“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 |
Y/Y |
Constant |
||
|
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 |
Y/Y |
Constant |
||
|
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.
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 |
Revenue |
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 |
Revenue |
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) |
|||||||||
SOURCE International Game Technology PLC
Source: Latest News on European Gaming Media Network
This is a Syndicated News piece. Photo credits or photo sources can be found on the source article: International Game Technology PLC Reports Fourth Quarter And Full Year 2018 Results
At EvenBet Gaming, we see firsthand how the marketing landscape is changing. Insights from our iGaming Future 2026 report show that in 2025, success comes from connection, not noise.
As regulations tighten, acquisition costs rise, and audiences scatter across platforms, the brands that win are those that blend precision with personality. Today’s players and partners expect authenticity over aggression and storytelling over sales pitches. Campaigns are no longer about mass impressions but about micro-moments – tailored, data-driven interactions that feel personal, even at scale.
The winners listen first, analyze second, and act third – turning insight into engagement. In this landscape, connection is the foundation of sustainable growth.
The Split Game: B2B vs. B2C
In B2B, the battleground is trust. CEOs and decision-makers are drowning in noise – from events to endless newsletters. What cuts through? Case studies that show ROI, product demos that feel real, and personal networks built at ICE or SiGMA. Social media remains the undisputed king here: 49% of iGaming executives use it as their primary info source, followed by in-person networking and industry events. Long-form content still works – when it’s insightful, not promotional. To stand out in B2B marketing, brands should focus on:
- Building thought leadership through expert commentary and research-backed insights that prove credibility;
- Nurturing long-term relationships via community-led webinars, roundtables, and co-marketing projects that drive collaboration;
- Leveraging data storytelling – turning complex metrics into simple, visual narratives that help decision-makers act fast.
B2C, by contrast, is all about emotion and immediacy – but with a sharper distinction between markets and business models. The latest EvenBet Gaming Social Media Report shows that while short-form and community-driven content remains key, the dominance of platforms differs markedly. In Europe – LinkedIn leads the way as a professional and networking hub, reflecting a B2B-oriented focus on authority building, lead generation, and industry-specific engagement. In Asia – Facebook and Instagram dominate, highlighting a strategy centered on community connection, targeted advertising, and broad audience engagement, with Telegram also playing a significant role. For B2C operators – visual storytelling and entertainment-led platforms such as Instagram, Facebook, and TikTok continue to drive emotional engagement, while for B2B providers – LinkedIn holds an undisputed lead, supported by Instagram and Telegram as complementary channels. The formula, therefore, is not simply to be social-first, but to be strategically social – prioritizing community and visual impact in B2C, and credibility and professional engagement in B2B.
AI and Automation – The New Marketers
According to EvenBet’s iGaming Future 2026 report, AI has moved from buzzword to backbone – redefining how brands attract, convert, and retain players. Predictive analytics now segment audiences before login, while machine learning powers adaptive CRM systems that personalize offers and retention bonuses in real time. In marketing operations, AI delivers measurable impact through:
- Dynamic pricing and bonus optimization – adjusting rewards by player value and engagement;
- Content intelligence – automating localization and campaign creation, cutting production time by up to 60%;
- Ad fraud prevention – identifying fake traffic before it drains budgets;
- Predictive churn analysis – triggering personalized retention actions;
- Voice and visual recognition – tracking live reactions and sentiment to optimize creative on the fly.
In B2B, AI turns marketing from broadcast to conversation – analyzing partner behavior, flagging high-value leads, and automating follow-ups. The brands that master real-time data interpretation lead the race. In iGaming, AI doesn’t just predict behavior – it shapes it.
Social Channels – The Real Arena
Social platforms have evolved far beyond advertising spaces. They’ve become the central nervous system of iGaming marketing. In 2025, social media is a living ecosystem where customer acquisition, brand positioning, community building, and market research all merge. Every platform has its rhythm and audience psychology; successful brands know how to play them like instruments in the same orchestra.
Whether a B2B partnership or a B2C retention campaign, the rule is simple: go where your audience lives, speak their language, and deliver value before the pitch. How each key platform shapes the iGaming marketing mix? Read here.
LinkedIn – the B2B Heartbeat
This is where credibility is built and deals are born. For iGaming providers, affiliates, and tech companies, LinkedIn serves as the top channel for partnerships, thought leadership, and lead generation. Sharing industry insights, case studies, and event takeaways reinforces authority and keeps brands visible among decision-makers. Paid targeting tools also allow for pinpoint precision, ensuring that every ad or article reaches the right vertical – from operators to regulators.
YouTube & Twitch – Where Entertainment Meets Education
As highlighted in EvenBet’s iGaming Future 2026 report, streaming has become a key growth channel for iGaming brands. YouTube anchors long-form storytelling – developer insights, product demos, and CEO interviews that build credibility. According to the EvenBet Gaming Social Media Report, YouTube accounts for 14% in Europe and 15% in Asia, showing near-equal relevance across regions and reinforcing its universal value for both markets.
Twitch, mentioned in iGaming Future 2026 alongside YouTube Live and Kick, plays a pivotal role in real-time engagement – driving live gameplay, poker tournaments, and influencer collaborations that enhance transparency and community connection. While no percentage data is provided for Twitch, the report emphasizes streaming as a natural fit for gambling content and audience interaction.
Together, these platforms turn audiences into participants – transforming content from promotion into experience.
TikTok & Instagram – Short, Raw, and Honest
Authenticity wins here. These platforms thrive on short-form, story-driven content that prioritizes emotion over polish. According to the EvenBet Gaming Social Media Report (p. 58), Instagram ranks second in both regions – 22% in Europe and 20% in Asia – while TikTok shows stronger traction in Asia (9%) than in Europe (5%), underscoring its growing influence among younger, mobile-first audiences.
Behind-the-scenes clips, quick tips, and relatable humor consistently outperform corporate messaging. Interactive ad formats like reels and hashtag challenges help iGaming brands spark viral loops, amplify influencer reach, and turn curiosity into action.
In a mobile-first world, these platforms don’t just advertise – they convert. The brands that master them know one truth: social is the marketplace, the focus group, and the loyalty engine all at once.
Customer Access and Personalization
Today’s players expect the brand to recognize them before signing in. The data backs it up: operators using personalized onboarding see up to 37% higher retention. Hybrid campaigns – connecting online and live play – are rising fast. A push notification might lead to an app bonus, unlocking a live event seat. That seamless loop is where loyalty lives. For iGaming operators, personalization now stretches far beyond “Hello, [Name]”:
- Behavioral segmentation uses AI to analyze time-of-day habits, game preferences, and betting velocity – letting brands tailor every interaction, from welcome bonuses to tournament invites;
- Cross-channel identity mapping ensures players get a consistent experience across web, app, email, and live venues – no duplicate offers, no irrelevant messages;
- Progressive profiling builds player personas gradually through engagement, balancing data collection with trust. This creates a 360° view without overwhelming the user with long forms;
- Experience-based incentives are replacing static bonuses. For example, completing a “10-hand challenge” online could unlock real-world prizes or exclusive event tickets.
What Next?
As highlighted in EvenBet’s iGaming Future 2026 report, the next phase of iGaming marketing – especially in B2B – is built on access, insight, and shared growth. Partners no longer want to be sold to; they want to collaborate, learn, and co-create. Loyalty now comes from ecosystems of mutual value, not discounts or outreach volume. Next-gen B2B engagement revolves around:
- Micro-communities on Slack, Discord, or LinkedIn – invite-only spaces where suppliers, affiliates, and operators exchange insights and form strategic alliances;
- Account-based marketing (ABM) powered by AI – integrating CRM and social data to tailor outreach, improving conversion rates by up to 50%;
- Virtual demos and co-branded webinars – frictionless entry points for collaboration that combine live interaction with analytics-driven follow-up;
- Shared data dashboards – transparency as the new trust currency, providing partners with real-time access to KPIs and campaign metrics.
In both B2C and B2B, the rule holds: the closer you get to your audience or partner, the harder it is for them to leave.
Innovation: Beyond Buzzwords
Gamification has become the universal language of engagement – missions, badges, leaderboards, loyalty loops. AI adds the adaptive layer; players evolve in real time. This same logic applies in marketing: adaptive storytelling that shifts with user behavior. The future? Predictive personalization. The line between “targeting” and “understanding” is getting thinner, and the best marketers are crossing it first. The new generation of gamified marketing goes beyond points and badges – it builds ecosystems of continuous engagement:
| Category | Tool / Mechanism | Description & Benefits |
| B2C (Players) | Dynamic Missions | AI-driven missions that adapt to player behavior in real time – e.g., switching from “daily spins” to “multi-table hands” based on user habits. Keeps engagement personal and relevant. |
| Reward Tiers & Progression Paths | Data-driven systems that reward consistency, not just spend. Players advance through experience-based milestones, improving long-term retention. | |
| Social Competition | Leaderboards, team missions, and community milestones create peer motivation. Increases engagement by up to 40% vs. solo play. | |
| Narrative Gamification | Marketing campaigns unfold as storylines – every message or promo feels like a new chapter in the player’s journey. Builds emotional attachment. | |
| AR & VR Integration | Combines real-world activity (QR scans, event participation) with digital rewards, creating immersive cross-channel brand experiences. | |
| Predictive Personalization | AI anticipates player mood and intent, adapting visuals, tone, and offers before behavior shifts. Moves from reactive to proactive marketing. | |
| B2B (Partners) | Partner Scoreboards | Tracks campaign performance – traffic, conversion, retention. Encourages friendly competition and higher partner productivity. |
| Gamified Learning Platforms | Turns product training and onboarding into missions, quizzes, and leaderboards. Boosts learning retention and team motivation. | |
| Incentive Ecosystems | Partners earn tiered rewards – access to beta tools, co-marketing funds, or exclusive insights – based on measurable performance metrics. | |
| Community Challenges | Affiliates or resellers compete in group KPIs (e.g., “Top Q3 Converters”). Builds engagement and shared achievement culture. | |
| AI Engagement Analytics | AI monitors partner engagement levels, offering personalized feedback, goal suggestions, and reward triggers automatically. |
Ultimately, gamification in iGaming marketing has shifted from “adding fun” to engineering motivation. It’s about designing systems where engagement becomes the most natural move. When rewards, progress, and storytelling align seamlessly with user behavior, participation stops feeling like marketing and starts feeling like entertainment. The brands that master this balance turn every interaction into a self-sustaining loop of curiosity, reward, and loyalty – where players don’t just play the game, they live inside it.
Final Hand
In 2025, iGaming marketing is a blend of human intuition and machine precision. The era of mass messaging is over – success now means balancing data with emotion and automation with authenticity. In B2B, growth comes from trust, transparency, and measurable ROI rather than lead volume. In B2C, players expect instant personalization, dynamic engagement, and brands that speak their language – making AI-driven personalization and social-first storytelling essentials, not extras.
The strongest brands will merge both worlds, using AI to amplify empathy and data to sharpen creativity. In a market flooded with content, relevance is survival – and trust is the true currency of differentiation.
Reading Time: < 1 minute
This Halloween season, GR8 Tech dares the iGaming world to face its darkest fears. The company has launched an interactive campaign titled “What Scares Operators Most?”, inviting operators to explore the challenges that haunt their daily operations—and to discover how the right solution can turn those fears into fuel for growth.
The mysterious, immersive journey highlights iGaming’s most chilling pain points, and each revealed fear leads to actionable insights and practical solutions, guiding operators toward the tools and strategies that keep their businesses bulletproof, no matter what monsters lurk in the data.
“Fear is a powerful teacher,” said Yevhen Krazhan, CSO at GR8 Tech. “Every operator faces moments that test their systems and their strategy. Our Halloween campaign acknowledges those fears and shows that with the right partner, they’re entirely conquerable.”
On the GR8 Tech website, visitors can flip cards, uncover their personalized iGaming “fear,” access GR8 Tech’s expert take on how to overcome it, and view materials that discuss the problem in more detail. They can also share their results or book a meeting to discuss real-world solutions.
Operators brave enough to fight their fears are encouraged to continue the conversation in person at SiGMA Central Europe 2025, Booth 5028. Because in the world of iGaming, even the scariest nightmares can turn into winning stories.
The post GR8 Tech Challenges Operators to Face Their Fears This Halloween appeared first on European Gaming Industry News.
Reading Time: 5 minutes
Here are this weeks latest slots releases compiled by European Gaming
Relax Gaming is opening the hatch to Frank’s Diner, an apocalyptic slot where Split Symbols, reel multipliers, and Gold Wild re-spins deliver the potential for sizzling wins. Split Symbols take centre stage, with two or three identical single symbols landing on the same reel, forming double or triple stacks that immediately multiply the number of ways to win.
BC.GAME has released Tim & Larry, a new in-house developed slot combining traditional video slot mechanics with a cartoon-inspired theme centered around a kitchen standoff between a cat and a mouse. The game features high volatility, a theoretical RTP of 96.91%, and a capped maximum payout of 15,000× the base bet.
Inspired Entertainment, Inc., is excited to announce the launch of Werewolf It Up! featuring Cash Bank and Zeus Legends of Olympus featuring Triple Hit Combo across the UK and Malta iGaming markets. Packed with captivating visuals and engaging gameplay, this online and mobile slot duo is designed to deliver strong results for operators and offers the best in iGaming entertainment for players.
TaDa Gaming invites players to spin for royal rewards in Crown of Fortune, a vibrant 5×3 slot featuring expanding Wilds, locking respins and dazzling payout potential of up to 1000x the bet. Blending nostalgic fruit slot charm with polished, modern mechanics, Crown of Fortune captures the timeless allure of classic gameplay—enhanced by Wild-driven action.
SlotMatrix has launched its latest exclusive title, Aphrodite’s Fortune, an enchanting slot that invites players into the goddess’s golden garden of love and wealth. Set among the clouds of Mount Olympus, Aphrodite’s Fortune celebrates beauty, fortune, and celestial power in a stunning 10,000-ways-to-win format.
Have you got what it takes to take on the Prize Ladder and come out on top? That’s the question players must answer before taking on the latest classic slot title from in-demand content house, Northern Lights Gaming. Bright lights and big wins are the order of the day in Prize Ladder, a game-show style blockbuster that promises twists and turns from the very first game round to the last.
Gaming Corps is preparing to enchant players this October with the launch of its latest slot, 3 Pots of Potions. Arriving just ahead of Halloween, the high-volatility release combines imaginative design with feature-rich gameplay and the potential to conjure wins of up to 10,000x the stake.
Get ready for a spine-tingling splash with Fish Tales: Halloween from Booming Games! This spooky twist on the beloved Fish Tales: Monster Bass takes you to a haunted underwater world where ghoulish fish and creepy cash prizes await. The beloved spook-tacular mechanics remain intact, but with an eerie makeover—fog-drenched waters, zombified fish, and a fang-tastic new design.
Evoplay has released Young Buffalo Coins, the second instalment in its popular Young Buffalo series. Following the success of the original title, the new game takes players back to the wild prairies for another action-packed adventure, combining fast-paced gameplay, sticky coins, and big jackpot opportunities.
Online casino operators can give their players the fright of their lives with Midnight Queen, the latest slot launch from in-demand iGaming content provider, ICONIC21. Midnight Queen is a Vampire-themed slot that’s perfect for entertaining players during the Halloween season and beyond.
TaDa Gaming has returned to the savannah with intriguing new release Golden Explorer. A rich trove of multiplier gemstones sparkling with additional random multiplier bonuses can burst on to the screen, enhancing the win potential and delivering vivid and exciting gameplay for 96.99% and a max win of 30,000x.
To celebrate the launch of Reactoonz 100, Play’n GO’s iconic slot character Garga reached a max altitude of 37,753 metres (117,300 ft) in a two-hour flight to set a world record and become the first slot character ever in space. Play’n GO, the world’s leading casino entertainment provider, has today announced that one of the most iconic characters in slots, Garga, has set a world record by becoming the first slot character in space.
Tom Horn Gaming is expanding its portfolio with the release of 243 Zeus Fruits, a slot that combines two proven player favourites – fruit slots and Greek mythology. The game delivers short feature cycles, multipliers, and higher stakes through the supplier’s QuickX mechanic.
Amusnet invites players into a realm of mystery and midnight thrills with Vampire Dice, its latest Online Casino portfolio addition. This captivating dice-themed game combines gothic elegance, thrilling features and an immersive atmosphere where every roll reveals secrets of the night.
SlotMatrix has embraced the Halloween spirit with its latest exclusive release, Ghost Pigger. Combining high energy rhythm and rewarding gameplay in a disco-fuelled haunted house, Ghost Pigger makes for a truly unique slot experience. The 96.09% RTP, medium volatility, and maximum win potential of up to 13,712x keep the players engaged.
The post Week 43/2025 slot games releases appeared first on European Gaming Industry News.
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