International Game Technology (IGT) revealed the business results for the first quarter of this year, which show the company recorded a year-on-year drop in sales.
During the first three months of 2017, IGT recorded a decrease in revenue of 10%, from $1.28 billion made in the same period of last year, to $1.15 billion.
The company’s adjusted Earnings Before Interest, Taxes, Depreciation and Amortization in the first quarter of the year are $371 million, a 19% year-on-year drop, while adjusted operating income of $238 million is a decrease of 21% when compared to the same period of 2016.
The main culprit for such poor results are high jackpot levels in combination with the latest Italian lottery concessions and overall lower sales of gaming products.
Marco Sala, chief executive of IGT described the first quarter of the year as a dynamic period, while adding the revenue and profit were consistent with the predicted yearly pattern.
Sala stated the company had strengthened its position in global lottery business and had begun the launch of the latest generation of gaming machines. He emphasized the fact the company would significantly reduce its debts through monetizing non-essential assets.
Chief Financial Officer of IGT, Alberto Fornaro blamed a unique combination of elements for the drop in quarter revenue, while also pointing out the record jackpot activity during the last year.
Fornaro said a discipline operational management was a top priority for everyone in the company, pointing out to the quarter cash flow as a proof of it.
International Game Technology (IGT) is a multinational gaming company, founded in 1990, that produces slot machines and other gaming technology.
The headquarters of the company are in the United Kingdom (London), while major offices are located in Italy (Rome) and the US states of Rhode Island (Providence) and Nevada (Las Vegas).
The biggest shareholder of IGT is Italian De Agostini, who owns 51% of the company’s shares. Today, IGT employs more than 12,000 people around the world.