MERGER PROPELS IGT REVENUES
Following the US$6.4bn merger with GTECH, IGT revenue grew 36 per cent to $1.29bn from $945m in second quarter US - Suppliers
IGT saw revenue grow 36 per cent to $1.29bn from $945m in the second quarter of 2014, reflecting GTech’s acquisition of legacy IGT. This was IGT’s inaugural announcement since the merger was completed on April 7, 2015. On a pro forma, constant currency basis, consolidated revenue increased one per cent reflecting double-digit increases in the US Lottery and International segments, partially offset by single-digit declines in Italy and US Gaming & Interactive segments. During the quarter, the company sold 10,147 gaming machines worldwide and global lottery same-store revenue excluding Italy increased seven per cent.
“The second quarter is a major milestone, as we present our first set of financials in dollars, under US GAAP,” said Alberto Fornaro, CFO of IGT. “Our adjusted operating income improved from the prior year’s level on a pro forma, constant currency basis and our financial condition remains strong. We will continue to operate with our customary, disciplined cost management and are confident in achieving our synergy targets according to plans.”
“We are pleased to report for the first time as a single
company,” added Marco Sala, CEO of IGT (pictured). “As anticipated, our second quarter results reflect the stable growth characteristics of our global lottery operations and a meaningful improvement in our gaming operations. We have accomplished a lot in the past four months, notably organising ourselves under a single leadership team and consolidating our manufacturing footprint. There is much more ahead of us. In this year of transformation, we will continue to focus on integration to provide a solid foundation for future growth and value creation.”
Mr. Sala said the company has also completed the
integration of its IGT and GTECH sales forces. Because of a modest overlap in operations, he said the merged IGT was able to maintain a high degree of sales force continuity. International revenue came in at $247m, 67 per cent higher than the prior year on a reported basis, reflecting strong product sales for lottery terminals and gaming machines. International lottery same-store revenue was up eight per cent on continued, broad-based strength in instant tickets and robust jackpot growth in Eastern Europe. Lottery product sales increased significantly on large South African terminal and system sales.
Mississippi Isle of Capri Casinos is to close its casino property in Natchez, Mississippi, and has entered into a definitive agreement to sell its Natchez hotel and certain related non-gaming assets to Casino Holding Investment Partners, LLC, the parent company of Magnolia Bluffs Casino, for $11.5m. The transaction is expected to close in October 2015, subject to customary closing conditions. “We are proud of all that we have accomplished together and we thank our team members for their dedication and hard work in the many years we have operated in Natchez,” said Virginia McDowell, the company’s President and CEO.
Nevada gives the green light for Penn’s Tropicana purchase
NEVADA Penn National Gaming has received approval today from the Nevada Gaming Commission to complete the company’s planned $360m acquisition of Tropicana Las Vegas. The NGC’s approval represents the final step in the regulatory process to acquire the property following approvals in several other jurisdictions where the company operates.
“The addition of Tropicana Las Vegas to our national portfolio of gaming assets is an exciting and important milestone for Penn National as it fulfils our long- standing strategic objective to acquire the right resort at the right price on the Las Vegas Strip. Tropicana Las Vegas will allow us to leverage our database of
nearly 3 million active regional gaming customers while further diversifying our operations with another wholly-owned asset,” said Timothy Wilmott, CEO of Penn. “Our regional gaming cus- tomers have long asked us to offer them an attractive destina- tion on the Las Vegas Strip. After our disciplined search, we believe the Tropicana will while enhance our already strong com- petitive position in the local mar- kets where we operate. Furthermore, the Tropicana Las Vegas is ideally suited to benefit from significant investment at adjacent gaming properties which is expected to generate additional traffic in the area.”
Penn National has developed a two-phase plan to realise the full
value of the transaction, which it expects to implement over the next three to five years. In the first phase, scheduled to occur over the next 6-9 months, it will invest approximately $20m in further facility improvements and integration activities. These will include upgrading the prop- erty’s technology infrastructure to allow for Penn National’s nationwide player loyalty pro- gram, Marquee Rewards, with the goal of launching the program in the second quarter of 2016.
In the second phase, Penn plans to evaluate other potential enhancements at the property, such as the addition of retail space, f&b outlets, casino floor improvements and potentially additional hotel rooms. The scope, budget and timing of any such expansion and improve- ments will be determined based upon Penn National’s operation of the property and customer demand for additional amenities.
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US –INTERBLOCK NAMES NEW MANAGER Interblock has expanded the compa- ny’s marketing capabilities, naming Las Vegas casino marketing veteran Jamie Garrett as the company’s new Promotions and Creative Services Manager.
Interblock Vice President of Marketing
Colleen McKenna said, “I’m very happy to welcome Jamie to the Interblock marketing team. Her hire will allow the compa- ny to develop even more strategic and meaningful marketing programs that are customized for our customers, empower- ing us to help our customers bring the fun and luxury of Interblock games to their players.”
US – NEVADA PROPERTIES PROP UP MGM’S Q2 Las Vegas is once again driving revenue at MGM resorts with Nevada resorts helping the group stem revenue loss from the downturn in Macau. GGR for Q2 came in at $98m, down 11 per cent from the $110m recorded last year.
Jim Murren, Chairman and CEO, said of the Las Vegas prop- erties: “We are continuing to drive increased profits at MGM Resorts with second quarter wholly owned Adjusted Property EBITDA up 11 per cent driven by growth at our Las Vegas and regional resorts. These resorts are continuing to gain operat- ing momentum while we continue to make significant progress on our development pipeline in Cotai, Maryland, and Massachusetts. We are focused on positioning the Company for future growth, and are pleased to announce the imple- mentation of our Profit Growth Plan to further enhance our business practices and profitability."
US - INDUSTRY RAISES $140,000 TO BENEFIT NCRG The gaming industry went to new heights and raised $140,000 to support responsible gaming at the 17th annual AGEM/AGA Golf Classic Presented by JCM Global.
More than 144 players from across the gaming industry spectrum participated in the tournament on the perfect and legendary greens of Cascata in Boulder City, Nev. Money raised supports research conducted by the National Center for Responsible Gaming (NCRG). Over its history, the event has raised more than $1.45 million for the NCRG.
“The NCRG is immensely grateful to AGEM, AGA and JCM Global for their continuing support of research that will lead to effective prevention and treatment of gambling disorder,” said Christine Reilly, NCRG Senior Research Director. “We salute all of the companies and individuals that sponsored the 2015 golf classic.”
Returning as title sponsors were the Association of Gaming Equipment Manufacturers (AGEM) and the American Gaming Association (AGA).
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