Gaming equipment manufacturer IGT swung to profitability in its first quarter despite a decline in revenue, the company reported Monday.
The London-based company with vast holdings in Reno and Las Vegas, reported earnings of $80.5 million, 20 cents a share, on revenue of $1.144 billion for the quarter that ended March 31. In the same quarter a year ago, the company had a loss of $64.5 million, 51 cents a share, on revenue of $1.206 billion.
The company also declared a 20-cents-per-share dividend, payable June 17 to shareholders of record on June 3.
“Our first quarter results confirm the consistent growth profile of our global lottery business and the progress we’ve made in sales of gaming machines, where global unit shipments increased 20 percent,” CEO Marco Sala said in a conference call with investors Monday morning.
A 44.7 percent increase in the number of new machines shipped, some of them to Wynn Resorts Ltd.’s Encore Boston Harbor casino opening next month, offset a decline in the sale of replacement units.
Lottery sales, one of IGT’s biggest revenue drivers, had 3.7 percent growth for the quarter and company officials are optimistic it will be sustained with the potential of new contracts coming up in Pennsylvania and Brazil.
“As we look to the future, our focus remains on improving revenue and profits from gaming activities, innovating with new lottery games and technologies, and pursuing emerging growth opportunities,” Sala said.
IGT’s strong quarter still barely failed to meet analysts’ expectations, which, on average, were projected at 21 cents a share and revenue of $1.154 billion.
IGT stock closed down 1.8 percent, 25 cents a share, to $13.83 in average volume trading Monday. The issue was unchanged after hours.
First quarter revenue and earnings for London-based IGT, a gaming equipment and slot machine manufacturer with a major presence in Las Vegas and Reno. (NYSE: IGT).
1Q 2019: $1.144 billion
1Q 2018: $1.206 billion
1Q 2019: $80.5 million
1Q 2018: ($64.5 million)
Earnings/(Loss) per share
1Q 2019: 20 cents
1Q 2018: (51 cents)