International Game Technology PLC (IGT) saw its loss narrow to $54.79 million, or $0.27 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $92.77 million, or $0.46 a share. On the other hand, adjusted net income for the quarter stood at $58.67 million, or $0.29 a share compared with $115.66 million or $0.57 a share, a year ago.
Revenue during the quarter dropped 10.06 percent to $1,152.58 million from $1,281.56 million in the previous year period. Gross margin for the quarter contracted 396 basis points over the previous year period to 35.92 percent. Total expenses were 89.66 percent of quarterly revenues, up from 85.34 percent for the same period last year. That has resulted in a contraction of 432 basis points in operating margin to 10.34 percent.
Operating income for the quarter was $119.22 million, compared with $187.90 million in the previous year period.
However, the adjusted operating income for the quarter stood at $237.67 million compared to $310.19 million in the prior year period. At the same time, adjusted operating margin contracted 358 basis points in the quarter to 20.62 percent from 24.20 percent in the last year period.
"The first quarter of 2017 has been a dynamic period for us," said Marco Sala, chief executive officer of IGT. "Our revenue and profit are consistent with the pattern of the year that we described in March. Year to date, we’ve strengthened our leading positions in global lotteries and begun the rollout of a new generation of gaming machines. We are monetizing non-core assets that will allow us to significantly reduce debt, and we are adopting a new business model for our future participation in the social casino space."
Operating cash flow improves significantlyInternational Game Technology has generated cash of $283.67 million from operating activities during the quarter, up 37.97 percent or $78.06 million, when compared with the last year period. The company has spent $13.70 million cash to meet investing activities during the quarter as against cash outgo of $63.65 million in the last year period. It has incurred net capital expenditure of $11.13 million on net basis during the quarter, down 82.92 percent or $54.04 million from year ago period.
The company has spent $96.30 million cash to carry out financing activities during the quarter as against cash outgo of $272.23 million in the last year period.
Cash and cash equivalents stood at stood at $463.30 million as at Mar. 31, 2017.
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