Gaming equipment manufacturer and content provider International Game Technology Plc (IGT) reported on Tuesday a leap in first-quarter income from what it classifies as its pending discontinued IGT Gaming business for the land-based casino sector.
Such income was US$50 million for the first three months this year, up 354.6 percent year-on-year, according to a Tuesday filing in the United States.
The first quarter result for IGT Gaming was on total revenue for the segment that actually fell 3.0 percent year-on-year, to US$394 million.
However, selling, general and administrative expenses for the segment also fell year-on-year, by 19.2 percent, to US$84 million.
The parent group is currently focused on the lottery segment, with the global gaming and digital business classified as discontinued operations.
IGT is set to sell its gaming and digital interests to funds managed by affiliates of private equity firm Apollo Global Management Inc, for US$4.05 billion. The gaming techology parent reiterated in its Tuesday filing that it was expected the transaction would be completed by the end of the third quarter this year.
IGT also said it “expects to have continuing involvement with the IGT Gaming business via a transition services agreement.”
That would cover information technology, such as data centre hosting, human resources – payroll and benefits – and other back-office services for which the company will receive compensation.
“These services generally expire no more than two years after the proposed transaction closes,” stated the parent.
It added that the parent and IGT Gaming will license or sublicense “certain software, brands, and intellectual property to one another, which are subject to expiration based on the underlying contractual or statutory terms”.
Earlier this month, it was announced that IGT had been granted a gaming-related vendor licence in the United Arab Emirates (UAE). The licence was awarded by the General Commercial Gaming Regulatory Authority (GCGRA).
IGT’s total first-quarter revenue was down 11.8 percent year-on-year, at US$583 million. First-quarter net income attributable to IGT dipped 67.1 percent year-on-year, to US$27 million.
On May 8, the parent’s board declared a quarterly cash dividend of US$0.20 per share. The dividend, of approximately US$40 million, is payable on June 12.
