IGT reports higher revenue but greater loss in 1st quarter

Flags fly at International Game Technology (IGT) headquarters at 6355 S Buffalo Dr. Thursday, Aug. 13, 2015.

Slot machine and lottery company International Game Technology reported its first-quarter earnings this week.

Company: International Game Technology PLC (NYSE: IGT)

Revenue: $1.28 billion, up 51 percent from the first quarter of 2015.

The company was created by a $6.4 billion merger between Italian lottery company Gtech and slot machine company IGT. The merger closed last April.

On a more comparable, “constant currency” basis that combines the results of both companies during 2015 as well, revenue grew 4 percent year over year.

Loss: $92.8 million, compared to a loss of $39.3 million in the first quarter a year earlier. The net loss this year reflected $162 million in “primarily non-cash foreign exchange losses,” IGT said in a company statement. Last year’s figure only includes Gtech.

Loss per share: 46 cents, compared to 23 cents in the first quarter of 2015.

What it means: IGT said its revenue growth, using the more comparable 4 percent figure, was mainly reflective of “strong lottery performance, particularly in North America and Italy.” Same-store lottery revenue increased 18 percent, excluding Italy, which IGT attributed to the big U.S. Powerball jackpot.

IGT’s business is divided into several operating segments: North America gaming and interactive, North America lottery, international and Italy.

In the North American gaming segment, revenue for the first quarter was $339 million, which IGT said was “essentially in line with the prior year” on a more comparable basis. Revenue in the North American lottery segment, meanwhile, was $315 million, up 16 percent on a more comparable basis.

IGT’s international segment revenue was $185 million in the first quarter, down 2 percent from the previous year on a more comparable, “constant currency” basis. The Italy segment’s revenue was $444 million, compared to $434 million in the first quarter a year ago.

“We begin 2016 with a solid first quarter, evidenced by good revenue growth with all operating segments contributing to an improvement in profitability,” IGT CEO Marco Sala said in the company statement. “Continuing growth across all regions, especially North America and Italy, propelled our lottery revenues. Gaming revenues were resilient despite challenging market conditions in North America, our largest gaming market. We remain focused on re-energizing gaming operations and strengthening our global leadership in lotteries.”

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