International Game Technology (IGT), the new company formed by the recent merger of GTECH and Legacy IGT, has posted the quarterly financial results of the predecessor companies for the three months through to March 31.
GTECH, which completed its acquisition of IGT in April, posted revenue of €807.7 million ($922.8 milion) in the first quarter of the year, up 3.4% on the €781.3 million recorded in the corresponding period last year.
Earnings before interest, tax, depreciation and amortisation in the period remained relatively flat at €295.6 million, while operating income fell by 17.5% to €149.3 million.
GTECH cited the acquisition of Legacy IGT as the main reasons behind the year-on-year drop in income during the quarter.
Marco Sala, chief executive officer of IGT, said: “We had a solid first quarter for GTECH operations, continuing to run the underlying business efficiently and profitably, at the same time as we were completing a transformative merger.
“We were ready to launch the integration from day one, focusing on revitalising our R&D capabilities.
“Exciting content delivered across the whole range of platforms is the key to consolidating our leadership of the global gaming industry.”
Meanwhile, Legacy IGT, which was in its second quarter during the period in question, was hit by a 22% year-on-year drop in revenue to $399.4 million.
Elsewhere, operating income plummeted 110% to a loss of $7.2 million, while net loss came in at negative $13.1 million.
The second quarter results left Legacy IGT’s revenue for the first six months of its 2015 financial year at $850 million, down 19% on the $1.1 billion posted at the same point in the previous year.
Operating income in the six-month period was down 68% to $56.3 million while net income slumped 79% to $21.9 million.
source : www.igamingbusiness.com