IGT takes more aggressive stance in international markets

With a new head of international operations, IGT is taking a more aggressive stance in international markets, including Australia, according to a note from Union Gaming.

Management sees Australia as an opportunity, although prior management de-emphasized the market. “We believe Australia is a mature market, it does represent an important Asian Pacific gaming market and a stepping stone toward a better presence in the Asian gaming market overall,” the analysts said after meetings with management.

IGT management also remains optimistic on its growth prospects in North America, but stresses the main focus remains on Italian Lotto, as the company expects the request-for-proposal for Italian Lotto to be issued year end 2015. IGT remains confident as the incumbent.

Management was also confident in achieving the $280 million synergy target, of which $230 million are cost related. “By the end of 2016, more than two-thirds of these synergies will be implemented, with the full amount expected to be reflected in the P&L by 2018, though potentially as early as 2017.”