New York Stock Exchange-listed gaming equipment and services supplier IGT Plc is making deleveraging the company and paying a “steady” dividend its “top” priorities, said a note on Friday from Wells Fargo Securities LLC.
But analyst Cameron McKnight added: “Despite a resilient second quarter for IGT’s gaming equipment business, longer-term stability could be an ‘18- to 24-month’ journey.”
The note followed meetings with IGT’s management.
IGT Plc was created from the US$6.4-billion merger in April of Nevada-based slot machine maker International Game Technology and Italy-based lottery specialist GTech SpA.
The new entity incurred interest expenses of US$122 million in the second quarter, on increased debt to finance the merger. The creation of the new IGT has contributed to a group net debt of US$8.38 billion as of June 30, it said in its second quarter results, filed in August.
Mr McKnight said on Friday on the meetings with company executives: “We came away incrementally more positive on management and the company’s leadership.”
IGT saw its revenue grow in the second quarter but its income declined for the period.
"The positive underlying contribution from each of our operating segments provides a strong start to the year"
Chief executive of lottery and gaming supplier IGT