Supplier News
US – IGT sees first quarter revenues drop
By Phil - 12 February 2015
Revenue fell for International Game Technology in the first quarter despite double-digit improvements in its social gaming division.
The Reno-based slot giant, which is currently being bought by GTECH Holdings for $6.4bn, reported net income of $35m in the quarter that ended December 31, representing a 56 per cent fall from last year’s figures. Total revenue decreased 17 per cent to $451m, primarily driven by declines in product sales with first quarter revenue decreasing five per cent to $211m.
“Our continued focus on profitability has resulted in strong gross margins this quarter, including improvements in gaming operations gross margins,” said Patti Hart, IGT Chief Executive Officer. “While market challenges remain in the land-based casino business, our DoubleDown social casino generated a double-digit increase in both revenue and average daily active users in the quarter.”However, IGT’s interactive gaming business — primarily through its Double Down Casino product, grew revenue 23 per cent to $91.5m in the quarter. The average daily users on Double Down Casino, primarily played through Facebook, increased 11 per cent.”
At a special meeting of its shareholders, IGT shareholders approved the deal with GTECH.
More than 99 per cent of the votes represented and cast at the meeting, or approximately 72 per cent of the total outstanding common stock eligible to vote as of the January 2, 2015 record date, were voted in favour of the approval of the Merger Agreement. Approval of the Merger Agreement by IGT’s shareholders satisfies one of the conditions required to close the transactions contemplated by the Merger Agreement. The transactions are still subject to certain closing conditions, including, but not limited to, the receipt of required gaming approvals.
