• It's Here!

    Etf Pro

    Get the big financial market moves right, bullish or bearish with Hedgeye’s ETF Pro.

  • It's Here


    Identify global risks and opportunities with essential macro intel using Hedgeye’s Market Edges.

Presentation HERE


  • 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