IGT acquisition impacts GTECH Q1 2015 operating income

marcosala
Marco Sala

International Game Technology Plc (IGT) governance has presented separate results for GTECH SPA and IGT (legacy) divisions, due to the completion of its merger on 7 April. On Tuesday IGT Plc, released Q1 2015 trading update for GTECH operations

GTECH reported key metric growth in revenues of 3% to €807 million (Q1 2014: €780 million), which had been supported by favourable currency exchange rates and higher service revenues. EBITDA earnings would remain level with Q1 2014 of €295 million.

Company operating income and net earnings would be impacted by the high acquisition costs incurred by the acquisition of IGT (legacy). Q1 2015 operating income was reported at €149 million compared to Q1 2014: €180 million.

GTECH would post a net income of -€27 million for its Q1 2015 opening performance The technology provider detailed increased interest expenses of €81 million during the period (Q1 2014: €41 million)

Company governance stated that it was pleased with the company’s progress during a period of transition were GTECH saw improved performance in its Americas division which grew revenues 23% to €300 million.

Marco Sala, CEO of IGT commented on GTECH performance,

“We had a solid first quarter for GTECH operations, continuing to run the underlying business efficiently and profitably, at the same time as we were completing a transformative merger. We were ready to launch the integration from day one, focusing on revitalizing our R&D capabilities. Exciting content delivered across the whole range of platforms is the key to consolidating our leadership of the global gaming industry.”

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