Dallas, Texas 05/08/2014 (FINANCIALSTRENDS) – International Game Technology (NYSE:IGT) reported its second quarter 2014 operation results in the last week of April. The highlights of the earnings call was the double digit dip in quarter revenue and an even steeper decrease in its operating income.
International Game Technology (NYSE:IGT) Chief Executive Officer Patti Hart in his comments to the press post the earnings call attempted to refocus the investors and analyst attention to the potential of the company in the near future, while listing out steps the company took to stem the rot and turn around its operations in 2Q14. He went on to add that, “We’ve taken some decisive steps in the quarter to adjust our cost structure and position IGT for long term earnings growth. These actions are now behind us and we expect them to result in cost savings as we indicated earlier of $30 million in the current fiscal year and an estimated $50 million on an annual run rate basis”.
The stress on the future and the steps taken by the firm to cut down costs to boast earnings assume added importance since the revenue for the quarter was down by 15 percent to reach $513 million. The dip in revenue has been linked to the drop in revenue from its MegaJackpots® revenue.
Earnings per share for the quarter were down to 10 cents, which constituted a hugely impactful 66 percent. These grim figures were offset by the firm’s revenue from gaming services going up 27 percent to peak at $69 million. Future profitability has also strong potential as the company reported its daily average earnings per active user going up by 16 percent in the reporting quarter. In spite of the challenges in the quarter, the firm managed to shore up share holder value by ploughing back close to $27 million into the investors kitty in the form of dividend payouts.