Jun. 13, 2014, 8:37 AM| Comment!
Jun. 12, 2014, 5:36 PM
- Cimarex Energy (XEC) +1.5% AH on news it will replace International Game Technology (IGT) in the S&P 500: IGT will replace XEC in the S&P MidCap 400.
- Live Nation Entertainment (LYV) and ARRIS Group (ARRS) will replace Masimo (MASI) and Brink’s (BCO) in the S&P MidCap 400, with the latter two dropping down to the S&P SmallCap 600.
Jun. 9, 2014, 4:00 PM
- Reuters reports IGT (IGT +14.3%) has "attracted interest from other gaming companies as well as private equity firms," as it works with Morgan Stanley to explore a sale.
- Presentations for prospective buyers are reportedly being held. Sources caution uncertainty related to the selloff in IGT's shares could turn buyers away, and that a lengthy regulatory review process might await.
- Tumbling gaming product sales have and soft game operations revenue have led IGT to deliver multiple earnings disappointments. The company's interactive (social gaming) ops have fared better.
- Peers Scientific Games (SGMS +5.1%) and Bally (BYI +1%) have received sympathy bids.
- Earlier: IGT jumps on takeover talk
Jun. 9, 2014, 3:27 PM
May. 24, 2014, 3:39 PM
- Revenue from online gaming continues to disappoint in New Jersey. The Internet win for April for major players Borgata (BYD, MGM), Caesars Interactive (CZR), Trump, and Golden Nugget came in at $11.4M - less than $11.8M brought in during March. Original forecasts called for a take of over $30M a month in 2014.
- Easy access to illegal online gambling operators is thought to be reducing customer traffic. As a result, gaming companies are having a tough time capturing their investments as quickly as anticipated and are turning conservative.
- Boyd Gaming says it will cut advertising after recording a $3.2M loss from its Internet gaming business in Q1, while 888 Holdings (EIHDF) is shifting ad dollars to slots.
- The total gaming win in New Jersey (online and brick-and-mortar casinos) through April is down 1.2% to $874M. (Full report .pdf)
- The impact on brick-and-mortar casino traffic from legalized online gaming has been negligible so far in Nevada as well.
- Related: Online casinos face a hurdle from within the industry
- Casino stocks: TPCA, PNK, PENN, LVS, WYNN, MGM, MCRI, ISLE, CNTY, IGT, BYI, PTEK, MGAM
May. 21, 2014, 12:07 PM
- The American Gaming Association has dropped support for legalizing online gambling after seeing some major divisions between members on how a roll-out should progress.
- Casino heavyweights have bickered over what the regulatory framework should be for the industry.
- Though the launch of online gambling in Nevada, New Jersey, and Delaware hasn't gone as well as expected with offshore operators still dominating, Morgan Stanley forecasted the legal online gambling market could reach $8B a year by 2020.
- Related stocks: TPCA, PNK, CZR, PENN, LVS, BYD, WYNN, MGM, MCRI, ISLE, CNTY, IGT, BYI, PTEK, MGAM
- Related ETFs: BJK
Apr. 23, 2014, 2:07 PM
- IGT (IGT -10.4%) posted FQ2 EPS that was slightly above the guidance provided in a March 25 warning, and reiterated a forecast for FY14 (ends Sep. '14) EPS of $1-$1.10. But the company also reported gaming product sales (40% of revenue) fell 27% Y/Y to $202.6M, after having grown 4% in FQ1. Machine units recognized fell 45% to 7.9K, a reversal from FQ1's 20% growth.
- Gaming operations revenue fell 9% Y/Y to $230.4M (-8% in FQ1), with IGT's installed base falling 6% to 53.4K and yield declining 5% to $47; weaker MegaJackpots revenue is blamed.
- Interactive revenue rose 20% Y/Y to $79.8M (thanks to a 27% increase in social gaming revenue), but that's a slowdown from FQ1's 41%. DoubleDown's MAUs fell 1% to 6.2M after growing 26% in FQ1, but its bookings per DAU rose 16% to $0.43.
- Peers are also lower: BYI -3.9%. MGAM -2.1%. SGMS -4.1%.
- FQ2 results, PR, CC transcript
Apr. 23, 2014, 12:45 PM
Apr. 22, 2014, 4:10 PM| Comment!
Apr. 22, 2014, 12:10 AM
Apr. 21, 2014, 5:35 PM
Mar. 26, 2014, 9:14 AM
Mar. 25, 2014, 5:37 PM
Mar. 25, 2014, 4:33 PM
- IGT now expects FY14 (ends Sep. '14) EPS of $1-$1.10, below prior guidance of $1.28-$1.38 and a $1.20 consensus. FQ2 guidance is for EPS of $0.17-$0.19, below a $0.29 consensus. (PR)
- The gaming machine maker says it saw "a sharp decline in North American gross gaming revenues," and "further degradation in the international currency, compliance, and importation environment."
- IGT also says it's cutting 7% of its 5K-employee workforce. The cuts are expected to yield cost savings of $50M/year. Nonetheless, the company will continue spending $200M/year on R&D.
- CC at 8:30AM ET tomorrow.
Mar. 12, 2014, 8:34 AM| Comment!
Jan. 24, 2014, 4:19 PM
- International Game Technology (IGT -14.7%) tumbled to within striking distance of its 52-week low ($14.75) after missing FQ1 estimates and stating it its FY14 (ends Sep. '14) EPS is now "more likely" to be at the low of its prior guidance range of $1.28-$1.38, with "potential further downside risk." The consensus is already at $1.28.
- IGT's gaming ops (41% of revenue) remain under pressure: sales fell 8% Y/Y in FQ1 (lower North American MegaJackpots revenue is blamed) after dropping 6% in FQ4. The division's gross margin fell 200 bps to 61%, and its installed base 4% to 54.3K.
- Product sales (45% of revenue) managed to grow 4% after being flat in FQ4. Gross margin fell 100 bps to 52%. Interactive sales remain an area of strength, growing 41% on the back of 57% social gaming growth. Gross margin rose 500 bps to 63%, and monthly active users for IGT's DoubleDown social casino gaming unit rose 26% to 6.2M.
- IGT says it's "in the process of implementing a number of measures, including cost reductions," in response to its recent challenges.
- Peers Bally Technologies (BYI -5.9%), Multimedia Games (MGAM -3.8%), and Scientific Games (SGMS -8%) also fell sharply on a bad day for equities.
- IGT's CC transcript
IGT vs. ETF Alternatives
International Game Technology is a gaming company specializing in the design, development, manufacturing and marketing of casino-style gaming equipment, systems technology and game content across multiple platforms.
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