IGT earn­ings beat ex­pec­ta­tions; shares jump 15 per­cent

Las Vegas Review-Journal - - BUSINESS MARKETS - By Todd Prince Las Ve­gas Re­view-journal

Shares of In­ter­na­tional Game Tech­nol­ogy, the maker of slot and lot­tery ma­chines, jumped 15 per­cent on Tues­day af­ter the com­pany posted third-quar­ter earn­ings that beat Wall Street ex­pec­ta­tions.

IGT said rev­enue for the three­month pe­riod fell 4 per­cent to $1.2 bil­lion, sur­pass­ing an­a­lysts’ gloomier fore­cast by $60 mil­lion. Ad­justed net in­come of $81 mil­lion beat ex­pec­ta­tions by $32 mil­lion.

Shares rose $3.60 to close at $27.45 on the New York Stock Ex­change. The in­crease put IGT in the green for the year.

IGT had been one of the worst-per­form­ing gam­ing shares this year prior to to­day’s move amid con­cerns over weak new prod­ucts likes slots. The shares had fallen 6.5 per­cent through Mon­day’s close. That com­pares with the nearly 26 per­cent gain for the MVIS Global Gam­ing In­dex over the same time pe­riod.

IGT rev­enue and non­ad­justed earn­ings for the quar­ter were im­pacted by the sale of its mo­bile gam­ing busi­ness Dou­ble Down In­ter­ac­tive in April.

Ex­clud­ing for Dou­ble Down and Lotto con­ces­sion amor­ti­za­tion, to­tal rev­enue rose 2 per­cent in con­stant cur­rency, the com­pany said in a state­ment.

Both the gam­ing ser­vices and lot­tery busi­nesses saw growth when ex­clud­ing for one-time events.

Global gam­ing ser­vice rev­enue in­creased 5 per­cent when ex­clud­ing for the sale of Dou­ble Down. The com­pany’s global in­stalled gam­ing base grew 3,275 units from the prior-year pe­riod with both casino and VLT units ris­ing. New games shipped dur­ing the pe­riod were sold at a higher price com­pared with the year-ear­lier pe­riod.

IGT said it ex­pects rev­enue and profit for its North Amer­i­can gam­ing and in­ter­ac­tive unit to rise as it rolls out new games and prod­ucts.

Global lot­tery same-store rev­enue, ex­clud­ing Italy, rose 7 per­cent in the pe­riod driven by the North Amer­i­can mar­ket. Ex­clud­ing late num­bers, Italy lot­tery wa­gers ad­vanced 6 per­cent.

Con­tact Todd Prince at tprince@ re­viewjour­nal.com or 702-383-0386. Fol­low @tod­dprincetv on Twit­ter.

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