GTech posts profit drop for 2Q 2014

Aug 01, 2014 Newsdesk Industry Talk, Latest News, Top of the deck  

---

Italian lottery supplier GTech SpA on Thursday reported a drop of 9.6 percent in net income for the second quarter of this year in comparison with the same period last year. The company posted net income of EUR60.8 million (US$81.4 million).

All major financial indicators were down, with the company’s total revenues dropping by 1.4 percent to EUR751.1 million and operating income down by 3.4 percent, to EUR156.0 million.

GTech last month announced that it entered into a definitive merger agreement with U.S.-based gaming supplier International Game Technology (IGT). GTech will acquire IGT for US$6.4 billion, comprised of US$4.7 billion in cash and stock, and the assumption of US$1.7 billion in net debt.

“Despite a comparison with a very good second quarter last year that benefited from product sales related to the Canadian video lottery terminal replacement programme and significant jackpot activity, GTech was able to absorb the loss of those impacts and produce comparable results,” chief executive Marco Sala said in a statement.

“That is a significant accomplishment that demonstrates the resiliency and growth potential of our core business,” Mr Sala added.

---

---