IGT: In final quarter as GTECH, sales increase but profit falls

INTERNATIONAL GAME Technology released first-quarter earnings on Wednesday, showing a sales increase year over year, but a net loss for the same period.
INTERNATIONAL GAME Technology released first-quarter earnings on Wednesday, showing a sales increase year over year, but a net loss for the same period.

PROVIDENCE – International Game Technology released first quarter earnings on Wednesday, showing a sales increase year over year, but a net loss for the same period.

The earnings report is for the first quarter of 2015, which was before the combination of GTECH and Legacy International Game Technology on April 7 and thus includes only the results for the old GTECH.

The company reported sales of 807.7 million euros (or $912.7 million based on an average daily exchange rate of $1.13 per euro in the quarter, as supplied by IGT), a 3.4 percent increase compared with sales of $781.3 million euros ($1.07 billion based on the average daily exchange rate of $1.37 per euro for the first quarter of 2014).

A net loss of 23.6 million euros ($26.6 million) was reported for the first quarter, compared with profit of 81.5 million euros ($111.7 million) the year before.

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Two of the gaming company’s three segments, Americas and International, reported sales increases, while Italy reported a sales decrease, primarily due to larger sports betting payouts, the company said.
Revenue for the Americas was 300 million euros ($339 million), a 22.8 percent increase compared with the prior-year period. International revenue was 77 million euros ($87.1 million), which was 1.5 million euros more than the same previous-year period, driven by favorable foreign currency rates and increased lottery sales partially offset by lower machine gaming product sales.

The Italy segment saw revenue dip 6.7 percent to 430 million euros ($486.3 million) in the first quarter.

“We had a solid first quarter for GTECH operations, continuing to run the underlying business efficiently and profitably, at the same time as we were completing a transformative merger. We were ready to launch the integration from day one, focusing on revitalizing our R&D capabilities,” IGT CEO Marco Sala said. “Exciting content delivered across the whole range of platforms is the key to consolidating our leadership of the global gaming industry.”

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