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IGT DELIVERS Q3/2011 RESULTS

Wednesday July 27,2011 : Interactive business will be an important contributor to revenue and earnings growth in the coming years.
 
Land-based and online gaming company International Game Technology (IGT) delivered the results of its fiscal third quarter ending June 30, 2011 this week.
 
Key Performance Indicators (compared to Q3/2010) for the period include:
 
-  Total revenues increased 3 percent to $489 million (Q3/2010: $475 million), of which 55 percent was generated from gaming operations and 45 percent from product sales.
 
-  Consolidated gross profit for the quarter increased 8 percent to $289 million (Q3/2010: $268 million), due to improved product sales volume.
 
-  Operating income for the third quarter was $141 million (Q3/2010: $120 million), an increase of 17percent attributed to higher revenues, lower cost of sales and flat operating expenses.
 
For the nine months ended June 30, 2011, total revenues decreased 2 percent to $1.42 billion, gross profit improved 2 percent to $841 million and operating income increased 19 percent to $389 million.
 
With specific reference to the company's interactive division over the review period, Patti Hart, chief executive officer, IGT said:
 
"In comparison to last year, our Interactive business grew revenue over 20 percent and increased gross profit nearly 30 percent.
 
"The acquisition of Entraction is expected to enhance our interactive market position by adding poker, bingo and sports betting to our industry-leading online casino products. This is a clear example of our plan to prioritize higher growth opportunities in a responsible manner. We believe that our interactive business will be an important contributor to revenue and earnings growth in the coming years.
 
"In summary, we are generating strong operating cash flow. Improving our gaming operations and product sales businesses, harvesting opportunities internationally and continuing to execute against our plan of becoming a full-service global partner in the interactive space."



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