Deleverage, steady dividend IGT’s focus: Wells Fargo
Nasdaq-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.
Sponsored Feature
Latest News
Features
-
Macau Peninsula to become 2nd-tier casino hub: analyst Macau’s traditional gaming zone on downtown peninsula... -
Manila casino attack gives sector pause Management at two major casino venues in the Philippine... -
Virtual sports, next big thing in Macau casino market? Hong Kong-listed casino equipment supplier Paradise... -
Still room for improvement at Studio City: pundits As Studio City – the US$3.2-billion, 2015 addition to... -
Fantan to baccarat: a new book on Macau gaming law Macau’s pacapio Chinese lottery game will celebrate its...
Sign up to our FREE Newsletter
(Click here for more)
Most Popular
Macau’s Studio City resort owner files for potential IPO August 15, 2017 
Macau August GGR likely up at least 22pct: analysts August 15, 2017 
DB bullish on Wynn Resorts for Wynn Palace August 16, 2017