IGT has identified debt reduction and paying a “steady” dividend its “top” priorities, according to a new research note from Wells Fargo Securities.
“Despite a resilient second quarter for IGT’s gaming equipment business, longer-term stability could be an ‘18- to 24-month’ journey,” Wells Fargo analyst Cameron McKnight wrote following recent meetings with management for the slots and systems giant.
McKnight noted that while revenue grew year on year in the second quarter the company’s income declined. But he added, “We came away incrementally more positive on management and the company’s leadership.”
The newly enlarged IGT incurred interest expenses of $122 million in the second quarter on increased debt to finance the $6.4 billion merger completed earlier this year with global lottery supplier GTECH. The merger has contributed to a group net debt of $8.38 billion as of June 30, according to second quarter results released last month.
In other news, the company announced that GTECH Corp., now a wholly owned subsidiary, has signed a four-year extension agreement with the Nebraska Lottery that will see GTECH provide the lottery with its Altura GT1200 lottery terminals, AccuTherm Ultra printers and ES MultiMedia flat-panel advertising monitors. The agreement also calls for installation of the company’s Ticket-Scan Plus self-service ticket checkers at all current lottery retail locations.
IGT also has secured a multi-faceted casino systems agreement with Greece’s Regency Entertainment Group that includes deployment of a suite of systems solutions, including Casinolink 2.0, Media Manager, Mobile Host and Mobile Responder systems, connecting more than 1,500 slot machines at Regency’s Casino Mont Parnes and Casino Thessaloniki.
“We are pleased that Regency Entertainment Group has once again turned to IGT as its trusted systems partner,” said Walter Bugno, CEO of IGT International. “IGT’s deep understanding of Greece’s gaming market, coupled with our long-standing relationship with Regency Entertainment Group, uniquely qualified us to work side-by-side with this customer to identify the ideal suite of systems products that will allow for seamless player interactions and optimal operating efficiencies.”
IGT’s Casinolink 2.0 streamlines the accounting process and patron rewards systems among multiple properties, the company said. Regency will also utilize several Casinolink 2.0 system add-ons including the XtraCredit and PointPlay bonusing applications, and IGT’s Advanced Marketing Interface feature. The system connects preferred player-communication channels to Casinolink 2.0 system data and also provide players with real-time loyalty club account details.
IGT’s Media Manager enables operators to communicate directly with patrons while they are playing slots machines. IGT’s Mobile Host and Mobile Responder is designed to “maximize Electronic Gaming Machine uptime and elevate customer service through mobile devices,” said IGT.
“As a leading gaming and entertainment provider in Greece, our players look to us to deliver the most thrilling and sophisticated gaming experiences in the market,” said Ian Gosling, COO of Regency Entertainment S.A. “We are confident that IGT’s systems solutions will enable us to increase player excitement and loyalty while operating efficiently.”
