International Game Technology PLC (NYSE:IGT) Q3 2019 Earnings Conference Call - Final Transcript

Nov 14, 2019 • 08:00 am ET


International Game Technology PLC (NYSE:IGT) Q3 2019 Earnings Conference Call - Final Transcript


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Good day, ladies and gentlemen, and welcome to the IGT's 2019 Third Quarter Results Conference Call. [Operator Instructions]

I would now like to turn the call over to Jim Hurley, Senior Vice President of Investor Relations. Sir, you may begin.

Jim Hurley

Thank you and thank you all for joining us on IGT's Third Quarter 2019 Conference Call. Marco Sala, our CEO, will provide an overview

Marco Sala, our CEO, will provide an overview of the quarter and comment on our broader strategic initiatives. Then, Alberto Fornaro, our Chief Financial Officer, will provide operational and financial perspective on the results. After our prepared remarks, we'll open the call for your questions.

During today's call, we'll be making some forward-looking statements within the meaning of Federal Securities Laws. Forward-looking statements are not guarantees, and our actual results may differ materially from those expressed or implied in the forward-looking statements. The principal risks and uncertainties that could cause our results to differ materially from our current expectations are detailed in our SEC filings.

And now, I'll turn the call over to Marco.

Marco Sala

Thank you, Jim, and welcome everyone. The momentum of our core businesses is evident in the third quarter's solid key performance indicators. Global gaming machine unit sales were especially strong in the period. Free cash flow was a robust reaching a record of $456 million for the first nine months in making the important inflection point we expected this year. Lottery same-store revenue outside Italy rose 2% in the third quarter as 4% growth for instant and draw games offset the lower jackpot activity in the United States.

In Italy, total lottery wagers as well stable, higher Scratch & Win wagers made up for a slight decline in lottery. It is worth highlighting the strength of our North America Lottery product sales in the last two quarters. Our expanding suite of self service machines draw great interest from our customers at the recent trade shows. Our GameTouch 20 self-service sales mix of draw based games, instant tickets and multi-state jackpot games, and is meant to serve a big-box national retailers. So far about 1200 units have been deployed across 10 states with additional states expected to roll it out next year.

Our GameTouch Draw cabinet inspired by device we use for sports betting in Italy and Rhode Island provides self service for draw based games with a focus on Keno, it was developed to facilitate retailer adoption in restaurants, bars and other social spaces. Channel expansion is key to driving future lottery revenue growth and that is what these products are all about. We have had some significant lottery contract wins and extensions over the last several months. IGT was selected

IGT was selected to provide both lottery technology and instant ticket printing for the new Mississippi lottery. We also secured multi-year extensions in Colorado, Minnesota and Kentucky and we just signed a five-year facilities management and product sales contract with the Oregon lottery. In the significant lottery development, our 50-50 joint venture