IGT loses $21.3M in fourth quarter
International Game Technology reported a net loss of $21.3 million, or 7 cents per diluted share, for the fourth quarter, and for the year ended September 30, profit was down 56 percent to $149 million, or 51 cents per diluted share.
The quarterly loss is inclusive of a non-cash charge of 26 cents per share and a restructuring expense of 1 cent per share. Net income for the same period in 2008 was $52.1 million, or 18 cents per share.
Profit for the 2008 financial year was $342.5 million, or $1.10 per share.
For the year, revenues and gross profit from gaming operations totaled $1.2 billion and $683.8 million, respectively, compared to $1.3 billion and $778.1 million in 2008.
The Reno, Nev.-based slot giant attributed the decreases primarily to lower play levels and continued shifts in the installed base mix to include more lower-yielding, stand-alone lease machines.
“Our fiscal 2009 results reflect a challenging operating environment which we believe stabilized during our fiscal third and fourth quarters,” said CEO Patti Hart. “While we remain cautious on the timing and extent of the replacement cycle, we have been encouraged by modest upticks in spending by many of our casino operator customers over the past two quarters.”
As of September 30, IGT’s gaming operations installed base totaled 61,400 units, an increase of 900 units over the previous year. Installed base growth in international markets was partially offset by a reduction in domestic placements. As of September 30, approximately 85 percent of the installed base was comprised of variable-fee games that earn a percentage of machine play levels rather than a fixed daily fee.