BUSINESS

IGT Plc reports double-digit revenue growth

TAGs: IGT, international game technology

International Game Technology Plcigt-plc-reports-a-double-digit-revenue-growth (IGT) has posted a double-digit revenue growth for the second quarter ending June 30th.

The newly formed IGT Plc. has reported a consolidated revenue increase of 36% to $1.29b from $945.32m in the same quarter last year.

IGT was created by the $6.4b merger in April of Nevada-based slot machine maker International Game Technology and Italy-based lottery specialist GTech SpA. The new entity is now listed as IGT on the New York Stock Exchange.

IGT reported a net loss of $117m compared to net income of $55.17m in Q2 2014. The company expects to realize $230m in cost synergies from the merger by April 2018, and to achieve two-thirds of targeted savings on an annualized basis by April 2016.

“We are pleased to report for the first time as a single Company,” said IGT CEO Marco Sala. “As anticipated, our second quarter results reflect the stable growth characteristics of our global lottery operations and a meaningful sequential improvement in our gaming operations. We have accomplished a lot in the past four months, notably organizing ourselves under a single leadership team and consolidating our manufacturing footprint. There is much more ahead of us. In this year of transformation, we will continue to focus on integration to provide a solid foundation for future growth and value creation.”

Revenues grew only 1% on a constant currency basis, reflecting double-digit increases in the North American Lottery and International segments, partially offset by single-digit declines in the Italy and North America Gaming & Interactive segments.

The financial report is a major milestone for IGT as its presents its first set of financials in dollars, under U.S. GAAP.

In a separate announcement, the IGT’s board of directors initiated the first cash dividend paid to IGT shareholders following the GTECH-IGT merger. The company has declared a quarterly cash dividend of $0.20 per ordinary share, payable on September 10 to all shareholders of record as of the close of business on August 26, 2015. IGT also intends to pay a regular $0.20 quarterly cash dividend, representing an annual payout of $0.80, which is subject to ongoing board approval.

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