GTECH reels in more players

The company, which was incorporated in Rhode Island, USA, in 1980, has become a major force in the region, dominating the lottery and gaming markets in countries like Trinidad and Tobago, Jamaica, Barbados, Anguilla and Bermuda.

GTECH, which is listed on the New York Stock Exchange, entered the markets of the Caribbean back in 1994.

In 2001, when GTECH began operations in Jamaica through a viable partnership with Supreme Ventures Limited, the lottery market stood at J$3.5 billion. In only its first year of operation, this market grew to J$12 billion amidst criticism and doubt from rivalling factions. This year the market is expected to exceed J$16 billion.

Subsequently, GTECH and Supreme Ventures have revolutionised the lottery industry offering a number of online games and a complement of instant games.

GTECH initially created a foothold in the Caribbean by launching operations in Trinidad and Tobago through the National Lotteries Control Board (NLCB) in 1994. Since then, the company’s revenues have grown fourfold, contributing over US$3 million towards good corporate citizenship programmes.

With its acquisition, in 2004, of the privately held Leeward Islands Lottery Holding Company Inc (LILHCo), a lottery operating company headquartered on the Caribbean islands of Antigua and St Croix, GTECH obtained eight lottery contracts strengthening its presence in the Caribbean. These gave GTECH access to and control over the lottery markets in Antigua/Barbuda, Anguilla, St Kitts, St Maarten, Turks and Caicos, Barbados, Bermuda and the Virgin Islands.

"The acquisition of Caribbean-based LILHCo has enhanced our strategic foothold in the region and has provided significant growth opportunities in additional jurisdictions throughout the Caribbean," GTECH president and CEO W Bruce Turner, said.

GTECH said that LILHCo has provided a gross revenue contribution of approximately US$20 million, representing gross lottery ticket sales, and a net revenue contribution of about US$7 million for the fiscal year ended February 26, 2005.

For the fiscal year 2005, overall revenues for GTECH Corp were quite impressive at US$1.26 billion, up 19.6 percent over revenues of $1.05 billion in 2004.

Net income has also increased by 7.2 percent reaching US$196.4 million. The company generated US$375.20 million of cash from operations, during fiscal year 2005. This cash, along with cash generated by the sale of investment securities, was principally used to fund the purchase of Spielo Manufacturing, LILHCo and BillBird SA acquisitions of US$200.7 million.

The purchase of Spielo, a maker of video lottery terminals, a type of slot machine, will ensure that GTECH keeps pace with the growth in video gaming while BillBird, a Polish Bill payment services provider will allow GTECH to create solutions for commercial markets.

"Our recent acquisition of Spielo will further enhance the value of LILHCo, given the potential of the growing video lottery business in the Caribbean community," Turner said.

GTECH expects annual growth of an average of between 12 percent to 15 percent from 2004 to 2008 and forecast earnings per share gains of an average of 15 percent to 18 percent annually through 2008.

Following closely on the heels of its expansion into the Leeward Islands, GTECH set up its first gaming lounge in the Caribbean in December 2004 in Turks and Caicos where 50 machines were installed, then earlier this year, a total of 45 machines with a mix of IGT, Spielo and Bally games were installed in the St Kitts gaming lounge.

GTECH, which provides services and equipment to the lottery industry in 45 countries and 25 US states and controls 70 percent of the online lottery market, said that it has benefited tremendously from its relationships in the Caribbean and is currently pursuing new opportunities in Thailand, Finland, Germany, Ireland and New Zealand, CFO of GTECH Jaymin Patel disclosed.

GTECH employs 5,300 persons worldwide and has been recognised three years in a row by IDG’s Computerworld Magazine as one of the "100 Best Places to Work in IT."