- DoubleDown: highest rate of monetization per social user
- Will continue to invest in R&D (IGT: ~$200m, GTECH: ~$100m)
- Growing market share in instant ticket printing: currently 12%
- Partnered with MGM with interactive sports-betting and gaming opportunity
- Interactive business: skewed towards B2C, compared with B2B
- Atronic/Spielo: in the early years, had negative EBITDA. Big turnaround.
- Consumers want content across different platforms
- iLottery UK: 70% of offering
- Combined company LTM ending Dec 2014
- $6.048bn revs
- $2.039 BN EBITDA
- 2015/2016 Capex: will not include Lotto. When it is stable in 2017, they will include it.
- Synergy chart - opportunities in SG&A
- Revenue synergies of $50m is 'low hanging fruit'
- Want IGT to have a presence in Italy
- Net debt/adjusted EBITDA: <4x
- Dividend policy: transition to quarterly dividends. Advise Board to issue stable dividend in dollars, in-line with historical GTECH #s
- Sustained pressure on IGT.
- Expect some headwinds from currency as they move euros to dollars.
- Combined 2015 guidance no later than Q2 15 results
- Maintenance capex historically €170-€220 million for GTECH
- IGT capex historically $60-$100 million
- 2015 / 2016 / 2017 also impacted by Italian Lotto renewal (€350m / €250m / remainder)
Q & A
- Being outbid in Turkey - GTECH thinks their competitors were too aggressive.
- B2C: sees opportunity to become lottery operator
- $300m capex: most of it will be gaming operations and a little bit of interactive. Lottery don't need much capex.
- Will assess IGT's team and get the best talent