MILAN – Lottery and gaming giant Lottomatica Group said yesterday its Providence-based subsidiary GTECH Corp. saw earnings fall slightly in the first half of this year despite a 15 percent increase in revenue.
Lottomatica posted a profit of €94 million ($132.9 million) for the first six months of this year, up from €78 million in the first half of 2008. Earnings were lower than the average estimate of €102 million among analysts polled by Thomson Reuters.
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Earnings before interest, tax, depreciation and amortization (EBITDA) increased 8 percent to €430.6 million ($608.78 million), below the average estimate of €437 million in the Reuters poll. GTECH’s EBITDA fell slightly in constant currencies to €135 million ($190.86 million) from €139 million ($196.51 million) in the first half of last year.
“Despite extremely challenging economic conditions, Lottomatica Group achieved solid growth and sustained its momentum during the first half of the year,” Marco Sala, Lottomatica Group’s CEO, said in a statement.
Lottomatica Group’s total revenue increased to €1.1 billion in the first half of the year, up from €928 million in the first half of last year. GTECH posted total revenue of €503.4 million ($711.71 million) for the six months ended June 30. In constant currencies, GTECH’s revenue increased 15.6 percent to €475 million ($671.56 million) from €411 million ($581.1 million) in the first half of last year.
In a statement, Lottomatica said it saw “signs of improvement” in GTECH’s performance so far this year, with same-store revenue increasing 3 percent in the second quarter. The company also said GTECH’s expansion into sports betting and new media under the brand G2 is “on track.”
This year GTECH has won a new online contract with the New York Lottery; extended contracts with lottery customers in Minnesota, Tennessee, Wisconsin and Portugal; converted lottery systems in the U.K., Michigan and West Virginia; and introduced a new online lottery in the Dominican Republic, Lottomatica said.
GTECH Printing Corp. also won instant-ticket printing contracts with lotteries in Arizona, Massachusetts, Canada and Nicaragua, and opened a new printing facility in Lakeland, Fla., during the first half, the company said.
For the second quarter, Lottomatica Group said profit fell to €22.1 million ($31.24 million), compared with €35.5 million a year earlier, due to unrealized foreign-exchange losses.
GTECH posted second-quarter revenue of €240.4 million ($339.88 million), up 11.6 percent from the same period last year, while Lottomatica’s sales (excluding GTECH) totaled €276 million. Total combined revenue increased 7.8 percent from last year.
In 2008, Lottomatica Group posted total revenue of €2.1 billion ($3 billion) and had 7,500 employees in more than 50 countries.
GTECH Corp. – a wholly owned subsidiary of Italy-based Lottomatica S.p.A. (Pink Sheets: LTTOY; Milan Stock Exchange: LTO) – is based in Providence and has provided lottery technology and services to the R.I. Lottery since 1978. Additional information is available at GTECH.com and LottomaticaGroup.com.
