International Game prioritizes debt reduction, leverage improvement

By Devika Patel

Knoxville, Tenn., March 9 – International Game Technology plc expects to continue paying down its debt, using strong cash flow from its lottery and gaming operation. The company has already seen a reduction in its net debt during 2016.

“Disciplined operational and capital management led to a reduction in net debt [last year],” chief executive officer Marco Sala said on the company’s fourth quarter earnings conference call on Thursday.

“Paying down debt remains a key priority,” executive vice president and chief financial officer Alberto Fornaro said on the call.

“As we have demonstrated over the last two years, our lottery and gaming operation generates strong cash flow that has enabled us to consistently improve our net debt and leverage profile,” Fornaro said.

The company has a 4.31x leverage ratio. Net debt was $7.57 billion at year end.

Fourth quarter net income was $233 million; adjusted EBITDA was $422 million.

For the full year of 2016, net income was $211 million. The company’s adjusted EBITDA for 2016 was $1.76 billion on strong performance in North America and Italy.

Cash and cash equivalents were $294 million as of Dec. 31, 2016 compared to $627 million at Dec. 31, 2015.

International Game Technology is a gaming company based in Las Vegas.

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