Analysts welcome new IGT CEO
Wall Street isn’t forecasting many changes at International Game Technology following the sudden resignation this week of President and Chief Executive Officer TJ Matthews.
Patti Hart, a member of the Reno-based slot machine giant’s board of directors since 2006 and a veteran of the technology trade, will take over IGT’s day-to-day leadership next week.
During a half-hour “get to know you” conference call with analysts Wednesday, Hart said she didn’t expect to shake things up. Matthews will remain as chairman of the company’s board, at least through the end of the year.
IGT, along with the rest of gaming industry, has suffered for more than a year due to the recession. Revenues and earnings have suffered and IGT has lost market share to competitors. The company’s stock price lost 80 percent of its value in 2008.
“It is way too early to make a judgment as to whether or not Ms. Hart will be successful in righting the IGT ship.” Morgan Joseph gaming analyst Justin Sebastiano told investors. “To be fair, Ms. Hart did say that she would need at least three months on the job to get her IGT sea legs. Perhaps then we would see change.”
Hart clearly believes in server-based gaming technology, where IGT has banked much of the company’s future. IGT has server-based gaming systems on a test with Ameristar Casinos and expects to have about 20 more server-based gaming sites, linking between 50 and 100 slot machines each, in the market by December.
Aria, the centerpiece hotel-casino of MGM Mirage’s CityCenter project, will devote a large portion of its slot machine floor to IGT’s server-based gaming technology.
“We expect IGT to continue refocusing its efforts on content and recapturing market share while improving the cost structure of the company,” Stifel Nicolaus gaming analyst Steven Wieczynski said in a research note.
Macquarie Securities gaming analyst Joel Simkins said a change at the top of IGT was needed. But, he added, it was way too early to judge the successfulness of the move.
“If Patti Hart can truly reinvigorate content, repair customer relationships and attract some external talent to the company, we believe the opportunity to drive the stock price is enormous,” Simkins said.
