Shares in gaming supplier International Game Technology rebounded after dipping 6 percent in response to concerns over the political situation in Italy and a complicated stock transaction by the company’s majority shareholder. The trend, however, was reversed in subsequent trading.
IGT shares dipped amid concerns over the situation in Italy, which is steeped in $44 billion of government debt, creating one of the highest national debt-to-gross-domestic-product ratios in Europe. According to CDC Gaming Reports, concern also arose from a stock transaction involving De Agostini S.p.A., IGT’s largest shareholder, which placed 18 million shares on the market, most likely put pressure on the company’s stock.
IGT’s gaming and VLT business in Italy accounted for more than a third of its overall revenue in the first quarter.
Analysts remained positive on the company’s prospects, with Macquarie Securities’ Chad Benyon noting that Italy will continue to rely on gaming to boost tax revenues, despite calls for further regulation.
“We expect shares to resume their upward trend as political headwinds fade and as each business continues moving in the right direction,” Beynon wrote.
“The lottery business … remained strong with North America lottery revenues up 5 percent up year-over-year and overall Italian lottery wagers up 8.5 percent, including a 17 percent increase in 10eLotto,” wrote Union Gaming’s John Decree.
