IGT chief: Growth is sustainable
International Game Technology believes the continued success of its cashless slot-machine technology can help it continue the strong earnings it reported last week.
The company earned $87 million on revenues of $567.7 million in the quarter ended March 29 compared with earnings of $73.9 million on revenues of $496 million in the same period a year ago.
Tom Baker, president and chief executive officer of the Reno-based company, said he believes earnings will continue to outpace analysts’ expectations in this fiscal year.
In the next year, he said the company projects 15 percent growth in earnings.
Much of the fuel for that growth comes from the company’s ticket-in, ticket-out slot technology.
About 400,000 of the 700,000 slot machines in North American are potential targets for replacement with the cashless technology, Baker said.
He said the company is on track to reach its goal of selling 50,000 replacement slot machines this year.
Baker said, too, that the company believes its growth will be spurred as financially troubled states increasingly look to gaming to close their budget gaps.
IGT controls about two-thirds of the market for slot machines in North America.
The introductory 80-hour program — announced in May as one solution to Nevada’s oft-lamented skilled labor shortages — is designed to train people in construction, building maintenance and related trades.