WASHINGTON (dpa-AFX) - Slot machine maker International Game Technology plc (IGT) reported Tuesday a net loss for the second quarter compared to a profit last year, despite strong double-digit revenue growth, reflecting higher charges and adverse foreign exchange impact.
Adjusted earnings per share topped analysts' expectations, while quarterly revenues missed their estimates. The company also initiated EBITDA outlook for the full-year 2015.
IGT said this is its inaugural earnings announcement since the combination of GTECH S.p.A. and International Game Technology was completed on April 7, 2015. It is also a major milestone for IGT as its presents its first set of financials in dollars, under U.S. GAAP.
The results for the latest quarter includes the results of operations of GTECH for the entire period and those of legacy IGT from the date of the acquisition, while the year-ago quarter included only GTECH operations.
'We are pleased to report for the first time as a single Company. As anticipated, our second quarter results reflect the stable growth characteristics of our global lottery operations and a meaningful sequential improvement in our gaming operations,' CEO Marco Sala said in a statement.
The Las Vegas, Nevada-based company reported a net loss attributable to IGT of $116.89 million or $0.59 per share for the second quarter, compared to net income of $55.17 million or $0.32 per share in the prior-year quarter.
Excluding items, adjusted income for the quarter was $70.45 million or $0.35 per share, compared to $73.50 million or $0.42 per share last year.
On average, three analysts polled by Thomson Reuters expected the company to report earnings of $0.28 per share for the quarter. Analysts' estimates typically exclude special items.
Total revenues for the quarter grew 36.5 percent to $1.29 billion from $945.32 million in the same quarter last year, but missed three Wall Street analysts' consensus estimate of $1.30 billion by a whisker.
Revenues grew only 1 percent in constant currency, reflecting double-digit increases in the North American Lottery and International segments, partially offset by single-digit declines in the Italy and North America Gaming & Interactive segments.
During the quarter, the company sold 10,147 gaming machines worldwide and global lottery same-store revenue excluding Italy increased 7 percent.
Separately, IGT announced that its Board of Directors has declared a quarterly cash dividend of $0.20 per ordinary share, payable on September 10 to all shareholders of record as of the close of business on August 26, 2015.
This will be the first cash dividend paid to IGT shareholders following the acquisition of the legacy IGT by GTECH S.p.A. on April 7, 2015. IGT intends to pay a regular $0.20 quarterly cash dividend, representing an annual payout of $0.80, subject to ongoing Board approval.
'The Board's decision to initiate a dividend reflects its confidence in our strong recurring revenue model, high cash flow visibility, and culture of disciplined financial management. It is an important part of our commitment to enhance shareholder returns while strengthening our financial position and investing in long-term growth opportunities,' Sala added.
Looking ahead to fiscal 2015, the Company expects pro forma adjusted EBITDA in a range of $1.575 billion to $1.675 billion.
The company also expects to realize $230 million in cost synergies by April 2018, and is expected to achieve two-thirds of targeted savings on an annualized basis by April 2016.
IGT closed Monday's regular trading session at $18.98, up $0.18 on a volume of 1.43 million shares. In the past 52-week period, the stock has been trading in a range of $15.93 to $21.23.
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