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Gaming Supplier IGT Profits Increase Even Though Sales Drop

Posted on January 24, 2010 by Jordan There have been 0 comments

International Game Technology (IGT) cost-cutting plan set a while back made up for reduced revenues from slower-than-expected first-quarter slot machine sales. IGT saw its profit increase by 20 percent during the first quarter of 2010. The Reno-based gaming manufacturer reported net income of $73.3 million, or 25 cents per share, for the first quarter of 2010, compared to $61.2 million, or 21 cents per share, during the same period of 2009.

Although the company saw its revenue fall more than 14 percent from $601.6 million to $515.7 million during the year-over-year period, they managed to build up their profits. About 54 percent of first quarter revenue was generated from gaming operations while 46 percent was from product sales. Revenue from product sales declined 17 percent during the quarter to $238.4 million, compared to $288.3 million a year ago. Gaming operations revenue totaled $277.3 million during the first quarter of 2010, compared to $313.3 million in the same period last year. During the first quarter, historically the slowest of the year, however IGT shipped more North American replacement units than the prior year quarter.

With all of the casinos in Las Vegas there are literally thousands of slot machines that people can choose from. IGT unveiled its “Sex and the City” slot machine at the Global Gaming Expo in November, which the company expected to be an immediate success. In the first few months on the floor the game is out-performing IGT’s initial expectations. Their first bonus-heavy game “Sex in the City” offers more entertainment for the player, because they won’t have to wait long to hit a bonus on these new slot games. IGT programmed the new machine to hit a bonus, on average, once every 25 spins, where as a more typical bonus frequency is 40 spins to 100 spins.

The company also just announced the addition of two new executives this week. Gideon Bierer, a former senior vice president at MTV, joined IGT as the company’s vice president of new media while Susan Macke, formerly of Hewlett-Packard, is the company’s new chief marketing officer. In addition to its North American locations, IGT maintains sales, service and manufacturing sites around the globe - in Africa, Asia, Australia, Europe, and South America. IGT's international machine sales are growing more of the company's total sales numbers.

This post was posted in Vegas News