IGT says on track to deliver $280m synergies from GTECH merger

International Game Technology said it is on time and on track to deliver the projected $280 million in synergies from its recent merger with Italy’s GTECH.

“We were ready to launch the integration from day one, focusing on revitalizing our R&D capabilities,” CEO Marco Sala said. “Exciting content delivered across the whole range of platforms is the key to consolidating our leadership of the global gaming industry.”

The company, which is now headquartered in London, reported standalone results for its legacy businesses, with GTECH reporting Q1 and IGT Q2. The company will report consolidated group figures on a GAAP basis from Q2.

GTECH Q1 revenues rose 3.4 percent to 807.7 million euros ($916 million), while the company swung to a net loss of $26.9 million, or $0.16 a share, from a profit of $75 million, or $0.43 a share a year earlier. EBITDA was little changed at $295.6 million.

The increase in revenue was principally driven by higher service revenues, which rose 4 percent to 755 million euros, reflecting net favorable foreign currency effects and lottery growth in Italy and the Americas.

The company said it swung to a loss mainly because of acquisition-related items.

IGT’s stand alone Q2 revenue was down 22 percent to $399 million, while adjusted earnings per share decreased to $0.09 from $0.20.

The decline in revenue was mainly due to a drop in product sales and gaming operations, which was partially offset by interactive gaming.

 

Social gaming revenue increased 17 percent to $81 million compared to the prior year quarter.  Mobile revenue comprised 41 percent of total bookings in the quarter and increased 52 percent compared to the prior year quarter.