Fewer players contribute to drop in income at IGT

Apr 28, 2009 5:05 PM
Earnings by Ray Poirier | Fewer players spending less, a product of the current economic downturn, contributed to a 44% drop in income at International Game Technology (IGT) during the second fiscal quarter that ended on March 31.

In her first appearance as company CEO, Patti S. Hart reported that revenue during the second quarter fell to $475.7 million from last year’s $573.2 million. Net income fell to $36.3 million or $0.13 per share, down from last year’s $68.4 million or $0.22 per share.

Hart took over the CEO’s post on April 1 from TJ Matthews who retained his position of chairman.

"Our second quarter saw continued difficult economic conditions worldwide impacting our financial results," Hart said. "But, in a number of jurisdictions, we are beginning to see stability in play levels."

This stability is important to the company since it relies heavily on income from participation machines.

As for slot machine sales, the company said they increased. Machine sales rose to 12,600, an increase of 500 machines over last year. However, the company said U.S. sales were 1,000 down from last year while international sales increased by 1,500 machines.

Commenting on the quarter, Matthews said, "We think we are putting most of this behind us." He added that although both Las Vegas and Atlantic City continue to suffer a decline in tourism it appeared that casino spending appeared to be leveling off in some gambling markets, particularly in the Midwest.

Following the report, Susquehanna Financial’s LaFleur downgraded IGT shares to "negative" from "neutral."