IGT reports boost in 1Q revenue, but decline in profit

INTERNATIONAL GAME Technology’s first-quarter revenue jumped 51 percent to $1.3 billion, but its loss widened 143 percent to $86.4 million, or 46 cents per diluted share.
INTERNATIONAL GAME Technology’s first-quarter revenue jumped 51 percent to $1.3 billion, but its loss widened 143 percent to $86.4 million, or 46 cents per diluted share.

PROVIDENCE – International Game Technology PLC’s first-quarter revenue jumped 51 percent to $1.3 billion, but its loss widened 143 percent to $86.4 million, or 46 cents per diluted share.
The company said the revenue jump reflected GTECH’s acquisition of IGT in April 2015, and lottery growth in North America and Italy.
As a result of the combination of GTECH and IGT on April 7, 2015, reported financial information for the first quarter of 2016 includes results of operations of IGT for the entire period, while reported financial information for the 2015 first quarter includes only GTECH operations. Pro forma figures represent combined results of both companies.
On a pro forma basis, first-quarter revenue grew 3 percent to $1.3 billion from $1.2 billion.
Marco Sala, IGT CEO, said the first-quarter results were “solid,” and that gaming revenue was “resilient despite challenging market conditions in North America,” its largest gaming market.
“We remain focused on re-energizing gaming operations and strengthening our global leadership in lotteries. We were successful in securing the Italian Lotto concession, one of our largest contracts and a cornerstone of our Italian operations,” Sala said in a statement.
Among the operating segments, North America Gaming & Interactive saw revenue climb to $339 million from $30 million a year ago. On a pro forma basis, revenue was “essentially in line with the prior year,” IGT said.
North America Lottery revenue totaled $315 million in the first quarter, 25 percent more than the prior year and 16 percent more on a pro forma basis. Revenue in this segment was boosted by the record Powerball jackpot in that quarter.
International revenue grew 41.2 percent to $185 million from $131 million. On a pro forma basis, it declined 2 percent compared with the prior year period.
Revenue in the Italy segment was $444 million compared with $434 million a year ago.

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