IGT reports net profit in third quarter
Slot machine giant International Game Technology, which merged with lottery provider GTECH earlier this year, said Thursday the combined company recorded a net profit of $7.1 million in the third quarter.
IGT, which is now headquartered in London but maintains a separate corporate office in Las Vegas, said the combined company grew revenue 30 percent to $1.22 billion in the quarter that ended Sept. 30. The company's North American manufacturing is now consolidated at its plant in Reno.
IGT and GTECH completed their $6.4 billion merger in April.
IGT said its revenue from slot machine sales and its interactive gaming business declined 19 percent. A year ago, IGT benefited from the sale of video lottery terminals into Oregon and several new casino openings around the U.S.
"As expected, product sales moderated from the second quarter's high level," said IGT CEO Marco Sala.
During the quarter, IGT sold 6,622 slot machines worldwide while the company's global lottery revenue increased 6 percent.
Sala credited double-digit growth in lottery ticket sales in California, North Carolina and Indiana.
The company's DoubleDown Casino interactive division saw revenue increase 9 percent compared with the second quarter.
In its systems division, IGT signed agreements with Wynn Resorts Ltd. to provide casino management technology for the company's planned casinos in Macau and Massachusetts.
On a conference call with analysts, Sala said IGT was following the events surrounding daily fantasy sports, but has no immediate plans to enter the business.
However, he said if IGT's customers get involved in daily fantasy under regulatory guidelines, the company would provide its technology and sports wagering capabilities. IGT is in the process of developing a mobile sports wagering product for MGM Resorts International.
On a pro-forma basis, when comparing the new IGT with the combined results of the separate entities a year ago, revenue fell 18 percent.
During the conference call, IGT Chief Financial Officer Alberto Fornaro said the company had already realized more than half of its $230 million in annual cost savings expected by the merger.
Contact reporter Howard Stutz at hstutz@reviewjournal.com or 702-477-3871. Find @howardstutz on Twitter.
