GTECH reports 4Q loss, less profit in ’14, but revenue increases

GTECH S.p.A. reported a fourth-quarter loss and less profit in 2014 compared with 2013, but revenue increases for both time periods in its earnings report released Monday.
GTECH S.p.A. reported a fourth-quarter loss and less profit in 2014 compared with 2013, but revenue increases for both time periods in its earnings report released Monday.

PROVIDENCE – GTECH S.p.A. reported a fourth-quarter loss and less profit in 2014 compared with 2013, but revenue increases for both time periods in its earnings report released Monday.
The lottery operator, which is expected to close the $4.7 billion acquisition of International Game Technology next month, at which time it will become known as IGT, reported a loss of 93.4 million euros ($116.7 million based on an exchange rate for the period of $1.25 per euro) in the fourth quarter compared with net income of 7.2 million euros ($9.9 million based on a 2013 exchange rate of $1.38 per euro) in the prior-year period.
That compares with 2014 profit of 97.6 million euros, or $129.8 million, a decline of 52.4 percent from 2013’s earnings of 205.2 million euros ($283.2 million) in 2013.
GTECH reported fourth-quarter revenue of 809.5 million euros ($1 billion), a 4.7 percent increase over the same prior-year quarter of 773.1 million euros ($1.1 billion thanks to the more favorable exchange rate in 2013). The company said quarterly revenue was boosted by video lottery terminal sales in Oregon, and strong instant ticket sales revenue offset the drop in multistate jackpot activity.
For the year, GTECH posted revenue of 3.07 billion euros ($4.1 billion) compared with 3.06 billion euros ($4.2 billion) in 2013, a 0.2 percent increase.
“We ended 2014 on another robust quarter, with strong product sales in the Americas and International
and steady service revenues overall,” Marco Sala, CEO of GTECH S.p.A., said in a statement.
“We are finalizing the acquisition of IGT, ready to initiate the integration of our two companies, and to consolidate our leadership of the global gaming industry.”
Said Alberto Fornaro, chief financial officer, “Our underlying operating performance was very solid in the fourth quarter. Excluding one-off items primarily related to the IGT acquisition, we achieved or exceeded guidance in all our key full-year metrics.”

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