International Game Technology (IGT) announced in its second quarter 2022 earnings that it had raised $150 million (£122.8 million/1 €147.1 million).
The lottery and gaming technology supplier said the $150 million non-operating charge on its income statement was due to “potential losses related to ongoing litigation and claims related to DoubleDown.” It is said that it represents
A former customer of DoubleDown, a social casino business formerly owned by IGT, has claimed that social casino games, in which players can choose to purchase tokens that can be used to play, are illegal gambling in Washington, accusing the business of initiated a class action lawsuit against
The lawsuit was first filed in 2017 when IGT sold DoubleDown and has gone through many stages through various courts. However, IGT acknowledged in its second-quarter earnings that it was likely to incur a loss, so he booked a $150 million charge to cover the loss.
The DoubleDown lawsuit is one of a number of social gaming lawsuits in Washington State, in which Big Fish Games $155 million settlement fund In May 2020, we will refund the money you lost on last year’s game.
Also in its second quarter results, IGT reported revenue of $1.02 billion. That’s a 1.9% year-over-year decline for him, but IGT chief executive Vince Sadusky said he was one of the supplier’s best quarterly performances to date.
IGT CEO Vince Sadusky said: “Our business profile is underpinned by significant recurring revenue streams backed by long-term contracts and resilient end markets, providing a solid foundation for growth. We are focused on delivering on our goals and creating compelling value for our stakeholders.”
Products accounted for $179 million of this total revenue, up 27.8%, while services accounted for $842 million, down 6.5%.
Breaking down revenue by IGT’s three main business units, the global lottery business brought in $648 million, down 11.1% from Q2 2021. Revenues from the Global Gaming business, which includes land-based casino products, increased by 20.6. % to $330 million.
After the quarter ended, IGT’s digital and betting division, bolstered by the acquisition of iSoftBet, contributed $43 million, an increase of $1 million year over year.
IGT costs declined slightly, down 0.4% to $793 million.
As a result, the business posted operating income of $228 million. The business also reported his adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $409 million, down 7.0%.
However, after the share buyback was completed in November 2021 and the number of shares was reduced, earnings per share were up to $0.57.
After $205 million in non-operating charges (primarily due to the DoubleDown litigation, but also including interest costs), the business left $34 million in income from continuing operations.
During the quarter, IGT continued to reduce net debt to $5.72 billion and said it expected further reductions through future divestments.
As a result, the company “will be able to weather the economic cycle with lower leverage and increased liquidity,” he said.
