GTECH Italy revenues decline as group profits rise
Italian company sees fall in revenue in its Italian division with interactive down 10.3% in the quarter
Lottomatica owner GTECH has posted a 5.2% rise in quarterly profit despite recording falling revenues from its Italian operations with Q2 2013 interactive skill games revenues down 10.3% year-on-year.
Revenues from interactive skill games for the three months ended 30 June fell 10.3% to just under 18.8m, while H1 revenues came in at just under 40m, representing a 14.6% drop year-on-year.
Amounts wagered in the interactive skill games division also fell, down 9.3% year-on-year to 505.8 for Q2, with the H1 total down 12% year-on-year to just over 1bn.
Total revenues from Italy were approximately 421 million, compared to 450 million in the second quarter of 2012, with lower payouts in sports betting partially mitigating a decline in revenues from all other verticals.
The company’s consolidated revenues rose 3% in Q2 to $762m, underpinned by a 27% increase in revenues from its Americas segment to 262m, with GTECH posting EBITDA of 273.1m for the quarter up 5.2% year-on-year.
GTECH announced a reorganisation effort in January, which saw the company change its name from Lottomatica and operate under three new segments, Americas, international and Italy.
GTECH vice president William Scott left the software provider last month in a move that eGR understands to be related to a wider company reshuffle which will see the company increase its focus on the US online market.
GTECH CEO Marco Sala said the company’s reorganisation efforts were on track, with GTECH becoming more aligned to drive continued growth.
“Strategically, our reorganization efforts are on track and will create a more efficient Company better aligned to drive continued growth,” he said.