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HOME > NEWS > Investor News > IGT re-aligns to position for long-term earnings growth

IGT re-aligns to position for long-term earnings growth

26 March 2014

LAS VEGAS, Nevada -- (PRESS RELEASE) -- International Game Technology (IGT) is taking actions to re-align its cost structure for long-term earnings growth.

In order to responsibly address the challenges facing the gaming industry and their related impact on IGT, the Company is enacting cost-cutting measures including the reduction of its global workforce by 7 percent to realize expected cost savings of $30 million in the current fiscal year and an estimated $50 million on an annual run-rate basis.

The Company is lowering its fiscal year 2014 guidance for adjusted earnings per share from continuing operations from $1.28 to $1.38 to $1.00 to $1.10. The Company is also providing guidance for adjusted earnings per share from continuing operations of $0.17 to $0.19 for the second fiscal quarter of 2014.

"As we reach the halfway point in our fiscal year, you can see this is a challenging time for the industry and IGT. We knew that our success in 2013 would be difficult to replicate. However, we did not expect such a sharp decline in North American gross gaming revenues, or further degradation in the international currency, compliance, and importation environment," said Patti Hart, IGT CEO.

In addition to the actions mentioned above, IGT is taking a number of decisive actions to position for long-term earnings growth:

  • Continued commitment to improve its gaming operations performance
  • Secured a new global licensing agreement with Sony, which provides IGT with expanded franchise rights for Wheel of Fortune through the year 2024
  • Launching Powerbucks, a new interstate progressive jackpot, in Nevada, New Jersey, South Dakota, and Canada expected by the end of the fiscal year
  • Preserving its $200 million annual R&D investment, to maintain industry leading innovation
  • Reached a new agreement with Action Gaming to solidify IGT's 90-plus percent market share in video poker
  • Re-engineering its game development process to leverage its strength in social gaming to improve land-based game performance
  • Increasing its commitment to the Asian market

The opportunity for further discussion of IGT's re-alignment and strategic initiatives will be available on a conference call with CEO Patti Hart and CFO John Vandemore at 8:30 a.m. EDT on Wednesday, March 26.


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