GTECH confident of hitting 2014 targets after Q3 income increase

GTECH2
Marco Sala – CEO – GTECH SpA

Italian lottery and gambling technology provider GTECH SpA reported an increased operating income of €133.2 million (£104 million) up 30% on Q3 2013 €102.3 million (£80 million).

GTECH senior management confirmed that the company was on course  to meet its full year targets, however it expressed concern regarding its decline in Q3 revenues €727.8 million (Q3 2013 – €730.2 million) which were below quarter expectations.

GTECH reported that its revenue generation was impacted by a recorded 6.5% drop in North American revenues €234 million (Q3 2015 – €251 million). The operator stated that its North American performance had been hit by lower multistate jackpot purchases during the period.

Italian performance has offset the decline of its North American performance, with the operator increasing revenues by 7% to €424 million (Q3 2013 €398 million), GTECH noted that it had recorded a 59% wagering increase in its sports betting product, aided by strong player and wagering activity driven by 2014 FIFA World Cup

During the period GTECH was able to maintain an improved EBITDA performance of €252.2 million, up 15% on Q3 EBITDA €219 million which would contribute to the technology providers income generation.

Commenting on corporate performance Chief Executive Officer Marco Sala said “In a solid quarter, we were able to make up for the significant product sales of 2013 and for lower jackpot activity this year, and deliver stable revenues and higher profitability, thanks to the diversity of our revenue base,”

GTECH governance confirmed that it would move to close its acquisition of International Game Technology (IGT) in the coming months. The operator confirmed that it was in the process of finalising acquiring deal terms with shareholders. The company has stated that the deal will not be processed if shareholders representing more than 20% of GTECH’s capital exercise their exit rights, if this scenario were to happen GTECH would be entitled purchase the remaining shares.

“We really think the 20 percent threshold is a very important number for a company which has a 40 percent float,” Chief Executive Marco Sala said

GTECH Q3 2014 Performance Overview

GTECH

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