International Game Technology (IGT) is recognized as one of the world’s most innovative poker machine manufacturers. While the company has experienced significant growth and success in recent history, 2013 and 2014 have been tough years for IGT. After laying off a significant portion of its workforce earlier this year, IGT has announced that its profits have seen a 66% decline in the past year.
According to a statement from IGT, net income during this past quarter has fallen to $25.7 million. Over the same period last year, the company earned $78.2 million. So, IGTs profits have significantly dwindled over the course of the past year. IGT executives have known that the company was in trouble for quite a while. To help reduce operating costs and increase earning potential, IGT laid off 7% of its international workforce in March.
About 350 employees were let go, but IGT continues to struggle. Gaming industry analysts believe that IGT’s troubles are rooted in increasing competition from other poker machine developers, such as Aristocrat Leisure. While Aristocrat is a smaller company than IGT, it has been gaining much more positive attention from industry experts.
For the past three years, Aristocrat games have been top ranked in the Goldman Sach’s Slot Managers survey, earning the company positive press. Additionally, Aristocrat pokies have been filling up casino floors around the world, as The Walking Dead poker machine was one of the top orders at gambling venues this year. Still, IGT remains confident that it will be able to experience some recovery in the next year.
The company continues to manufacture innovative poker machines, and we hope that they can reclaim a larger portion of the land-based gaming market share. “Looking forward, we are confident that we will be able to leverage our leaner cost structure, substantial research and development investments and premium brands to drive shareholder value,” says Patti Hart, CEO of IGT
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