Americas gains hold GTECH up as revenue, profit slip in 2013
GTECH S.p.A. reported a 22.6 percent decline in 2013 profit compared with the previous year, following a 14.4 percent drop in revenue from the company's International segment. GTECH's Americas segment - which has its headquarters in Providence - was the only segment to post a year-over-year revenue increase, rising 13.9 percent last year.
PROVIDENCE – GTECH S.p.A.’s full-year 2013 revenue and profit declined compared with 2012, the company reported Thursday.
GTECH saw its revenue decline four-tenths of a percent to €3.06 billion ($4.23 billion based on the exchange rate of $1.38 per euro on Dec. 31), compared with €3.08 billion ($4.24 billion) in 2012.
GTECH’s profit fell 22.6 percent to €205.2 million ($283.2 million) from €265.2 million ($366 million) the year before.
In the fourth quarter alone, GTECH reported €773.1 million ($1.07 billion) in revenue, a decline of 4.8 percent compared with the €812.5 million ($1.12 billion) reported during the same three-month period a year earlier.
Net income fell 89.6 percent to €7.2 million ($9.9 million) from €69.4 million ($95.8 million) in the fourth quarter of 2012.
The Italian lottery company officially took on the name of its Providence-based subsidiary, GTECH Corp., in June 2013. The company is now divided into three segments – Americas, International and Italy – with the Americas segment headquartered in Providence.
The Americas segment showed a revenue increase in 2013, rising 13.9 percent to €994.1 million ($1.4 billion) from €872.4 million ($1.2 billion) during 2012. It was the company’s only segment to see an increase in revenue on a year-over-year basis for the full year.
GTECH attributed the Americas-segment performance to strong growth in same-store revenue, which benefited from the introduction of Powerball in California and the second-largest Mega Millions jackpot in history ($648 million) in December 2013. GTECH also reported higher service revenue from lottery management agreements in Illinois, Indiana and New Jersey.
The company’s International segment saw revenue drop 14.4 percent in 2013 to €331.1 million ($456.9 million) compared with €387 million ($534 million) a year earlier, a decline that GTECH attributed to lower EuroMillions jackpot activity. The Italy segment reported €1.7 billion ($2.4 billion) in revenue for 2013, representing a decline of 4.3 percent from the €1.8 billion ($2.5 billion) posted in 2012.
“During 2013, GTECH met or exceeded its key performance objectives and made significant gains in strategic growth segments while successfully executing a major reorganization,” said Marco Sala, CEO of GTECH S.p.A. “For the coming year, we expect to sustain our momentum as we build on these achievements.”
Sala said the company would especially focus on advancing its interactive offerings, most notably in the mobile gaming space. In February, GTECH launched the first U.S. mobile lottery app for the Illinois Lottery, allowing players in the state to purchase Powerball, Mega Millions and Lotto tickets using their Apple or Android devices.