Leading gaming supplier International Game Technology Ltd. reported first-quarter earnings showing revenues of .28 billion, up 51 percent from the first quarter of 2015.
The creation of the current company through the merger of the former GTECH and IGT companies didn’t occur until the second quarter. Comparing the current first quarter to those of the legacy companies, revenues were up 4.4 percent.
Despite the revenue increases, the company recorded a net loss for the quarter of $92.8 million, compared to a loss of $39.3 million in the first quarter a year earlier. The net loss this year reflected $162 million in “primarily non-cash foreign exchange losses,” IGT said in a statement. Last year’s figure only includes GTECH. The loss per share for the quarter was 46 cents, compared to 23 cents in the first quarter of 2015.
In the company statement, IGT attributed its revenue growth to “strong lottery performance, particularly in North America and Italy.” Same-store lottery revenue increased 18 percent, excluding Italy, which IGT attributed to the big U.S. Powerball jackpot.
In the North American gaming segment, revenue for the first quarter was $339 million, which IGT said was “essentially in line with the prior year” on a more comparable basis. Revenue in the North American lottery segment, meanwhile, was $315 million, up 16 percent on a more comparable basis.
The company’s international revenue was $185 million in the first quarter, down 2 percent from the previous year on a more comparable, “constant currency” basis. The Italy segment’s revenue was $444 million, compared to $434 million in the first quarter a year ago.
“We begin 2016 with a solid first quarter, evidenced by good revenue growth with all operating segments contributing to an improvement in profitability,” IGT CEO Marco Sala said in the company statement. “Continuing growth across all regions, especially North America and Italy, propelled our lottery revenues. Gaming revenues were resilient despite challenging market conditions in North America, our largest gaming market. We remain focused on re-energizing gaming operations and strengthening our global leadership in lotteries.”
