GTECH revenue declines 1.8%

ROME – Lottery and gaming giant Lottomatica Group said on Wednesday its Providence-based subsidiary GTECH Corp. saw revenue decline 1.8 percent in the first quarter.
GTECH revenue dropped to 189.5 million euros (about $278 million) in the first quarter from 193.0 million euros ($284 million) in the same quarter 2010; a weaker U.S. dollar and changes in GTECH’s contract portfolio offset higher jackpot activity in Europe and the U.S. and increased instant-ticket sales in California.
Lottomatica Group did not break out operating income for GTECH in its earnings release.
The parent company said its net income was 35.98 million euros ($53 million), or 13 cents per diluted share, in the first quarter down from 41.34 million euros ($61 million), or 18 cents per diluted share, as seen in the same quarter 2010. Revenue was 702.07 million euros ($1.03 billion), compared to 544.65 million euros ($801 million).
“Our positive first-quarter results further reinforce the momentum we experience in the fourth quarter of 2010. The fundamentals of our business are sound and sustainable,” said Marco Sala, CEO of Lottomatica. The company also raised its full-year revenue guidance to 890 to 910 million euros and its EBITDA estimate to 2.8 to 2.9 billion euros.
GTECH’s G2, the e-commerce solutions unit formed in 2009, had revenue of 19.2 million euros ($28 million) in the first quarter, up 4.4 percent when compared to the same quarter last year.
All currency conversions are rounded to the nearest million and were made on www.xe.com on April 27.