GTECH on track despite drop in Q3 revenue

GTECH on track despite drop in Q3 revenue

Wednesday, November 12, 2014

GTECH, the Italian lottery and gambling provider, says it is on target to hit its full-year financial targets despite mixed quarterly results.

The company performed well in Italy, its biggest market, generating increased operating income, but there was an overall drop in revenue, partly due to disappointing figures from North American operations.

GTECH had predicted a year-end net financial position of €2.47-2.53bn ($3.07-3.15bn), and was boosted in Q3 by a 30% year-on-year rise in operating income to €133.2m. Figures from its native Italy were up 7% year-on-year to €424m with sports betting, most notably takings from the Fifa World Cup, rising by 59%.

The company recorded a 6.5% drop in North American revenue to €234m. The operator stated that its performance in that region was hit by lower multi-state jackpot purchases during the period.

“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 chief executive Marco Sala said.

Sala also confirmed that the company is still on course to complete its acquisition of International Game Technology in the coming months.

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