IGT reports a loss for Q1 2017

rnational Game Technology posted its financial results for the first quarter of 2017, with a loss of $54.8m.

Consolidated revenue amounted to $1.15b compared to the $1.28b posted in the same quarter a year-prior.

The company said the revenue decline was due to a number of reasons, the first being comparison with the high jackpot levels of the prior year, in addition to the new Italy Lotto concession dynamics, and finally lower gaming product sales.

The results fell well short of Wall Street forecasts, with six analysts predicting $1.9bn in revenue for the four-month period.

“The first quarter of 2017 has been a dynamic period for us,” says Marco Sala, CEO of IGT. “Our revenue and profit are consistent with the pattern of the year that we described in March.

“We’ve strengthened our leading positions in global lotteries and begun the rollout of a new generation of gaming machines. We are monetising non-core assets that will allow us to significantly reduce debt, and we are adopting a new business model for our future participation in the social casino space.”

CFO of IGT, Alberto Fornaro adds: “As we noted in March, a unique combination of elements affected first quarter revenue and profit comparisons, including record jackpot activity in 2016.

“Disciplined asset and operational management are a top priority for the company, and this is evident in the strong first quarter cash flow. We are updating our outlook to incorporate the DoubleDown transaction and the impact of increased taxation on gaming machines in Italy.”

Since the beginning of the year IGT shares have declined 18%, although the stock has climbed 21% over the last 12 months.