International edition
September 24, 2020

Revenues from gaming operations for the period were us$ 341 million

IGT reports second quarter fiscal year 2008 results

(US).- IGT announced operating results for the second quarter ended March 31, 2008. Net income for the quarter was us$ 68.4 million versus us$ 128.2 million in the same quarter last year. For the six-month period ended March 31, 2008, net income was us$ 182.1 million to us$ 249.2 million in the same period last year.

T

he second quarter of the current year was unfavorably impacted by a number of significant items including a steep decline in interest rates, technological obsolescence charges related to the transition toward our new cabinets and platforms, additional bad debt provisions and discrete tax items. Collectively, these items totaled us$ 20.4 million after tax.

On a comparative basis, the second quarter of the prior year was favorably impacted by gains from Gulf Coast hurricane property damage and business interruption insurance proceeds and the sale of a corporate aircraft, as well as favorable bad debt provisions collectively totaling us$ 17.1 million after tax. A supplemental schedule of these items is included at the end of this release.

"IGT’s second quarter results were challenged by the current market environment," said Chairman and CEO TJ Matthews. "We remain focused on strategic initiatives which will maintain our standing as the leading worldwide provider of innovative gaming products and services. We continue to prepare for the introduction of the next generation of technological innovations and look forward to the market-driven expansion in domestic and international jurisdictions we believe will develop in the near future.”

“Recent strategic accomplishments that will enhance IGT’s long-term opportunities include our sb-related agreements with Harrah’s and CityCenter, our cross-licensing agreement with WMS, our strategic alliances with Progressive Gaming, Games Media and The Global Draw, and our potential acquisition of Cyberview Technology," Matthews added.

Second quarter revenues and gross profit from gaming operations were us$ 341 million and us$ 183.9 million, respectively, compared to us$ 341.1 million and us$ 211 million for the same quarter last year. For the six months ended March 31, 2008, revenues and gross profit from gaming operations totaled us$ 673.4 million and us$ 383.4 million, respectively, compared to us$ 666 million and us$ 397.7 million in the same prior year period.

Revenues were comparable to the prior year periods as a result of lower play levels largely attributable to recent economic conditions. For the current quarter and year-to-date, gross margins on gaming operations were 54% and 57%, respectively, compared to 62% and 60% in the prior year.

Gaming operations gross profit and margins were impacted by the significant decline in interest rates during the quarter. A 200 basis-point reduction in interest rates resulted in us$ 12.3 million of additional jackpot expense for the quarter due to higher costs to fund jackpot liabilities. In addition, the current quarter also included us$ 8 million of technological obsolescence charges for fixed assets related to our transition to new game cabinets and platforms. In the prior year quarter, gross profit and gross margin were favorably impacted by a gain from Gulf Coast hurricane property insurance totaling us$ 5 million.

As of March 31, 2008, our gaming operations installed base totaled 58,700, an increase of 3,900 units from the prior year quarter and down 100 units from the immediately preceding quarter. Year-over-year growth was primarily the result of expansion in Oklahoma, Mexico, Florida and Africa. The sequential quarter reduction primarily resulted from the transition of Class II products to for-sale Class III machines in Florida and California.

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