Slot Machine Giant Gets Higher Margins

International Gaming Technology (IGT), undoubtedly the leader in slot machine technology, was pleased to announce that they have pushed their fourth quarter margin up nine percent. They believe that higher margins and excellent results from their gambling operations offset the slip in slot machine sales that they saw.

IGT said that their net income had risen $114.9 million from the $105.4 million they were showing a year earlier. The Reno, Nevada slot machine maker said that they are currently holding at an additional 33 cents a share. They had record slot machine and gaming operations revenues of $333.8 million, which comes from their “installed base” of slot machines. This base is basically made up of slot machines that have already been placed in casinos that the company owns and operates.

They then split the slot machine revenue from these machines with the properties. The company sold 22,400 slot machines across the world, down from 39,900 slot machines sold the year before. Much of that can be contributed to the fact that Japan had bought a large number of slot machines the year before, and they did not have that number to sell this year.

The company said that although “both product sales and gaming operations were below [their] forecast….gross margins on both product sales and gaming operations were up nicely year over year."

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