ROME and PROVIDENCE – Lottomatica S.p.A. (Pink Sheets: LTTOY; Milan Stock Exchange: LTO) and subsidiary GTECH Corp. posted a total 2008 profit of €137.87 million ($174.29 million at today’s exchange rate), a 30.11-percent increase from 2007’s €105.96 million ($133.94 million), on revenue that rose 15.06 year over year to €1.82 billion ($2.30 billion). Earnings per diluted share rose to €0.62 (78.4 cents) last year from €0.49 (61.9 cents) the year before.

The Lottomatica Group’s Providence-based GTECH segment posted annual earnings before interest, taxation, depreciation or amortization (EBITDA) of €306.8 million ($387.7 million), a 1.19 percent decline from the year-ago €310.5 million ($393.7 million), despite revenue that grew 27.91 percent to €1.07 billion ($1.36 billion).

The group’s 2008 results included one-time non-cash impairment and other charges of €104.8 million ($134.21 million), “on investments related to tangible and intangible assets of Atronic” and a lottery system for an international customer that has been deployed but not yet launched, the company said.

“We are very pleased with our results in 2008,” said Lorenzo Pellicoli, chairman and chief executive of the Lottomatica Group. “We achieved the guidance provided to the market, with significant growth in revenue and margins. We also demonstrated that – through the group’s global presence in over 50 countries and across all gaming market segments – we are able to generate income, pay dividends and maintain a solid financial structure to support our growth.”

For the three months ended Dec. 31, the company posted operating income of €2.9 million ($3.7 million) on revenue that grew 50 percent year over year to €657.3 million ($831 million). But excluding the €104.8 million in impairment and other one-time charges mentioned above, operating income would have risen 52 percent year over year to €107.7 million ($136.2 million).

GTECH revenue for the quarter grew to €385.8 million ($487.7 million), a 78 percent increase from the 2007 fourth quarter, “primarily driven by product sales to customers in the United Kingdom and Finland,” the company said. “Same-store service revenue growth was 5 percent.”

The segment’s fourth-quarter highlights included the signing of a seven-year, $105 million contract with the New Jersey Lottery to provide equipment and support for a new instant-lottery system (READ MORE); and the signing of a new contract to provide an online lottery system to South Dakota. (READ MORE) And this week, GTECH announced a four-year, $50 million extension of its existing contract with the Tenn. Education Lottery Corporation. Besides ongoing services for the Tennessee Lottery’s existing equipment and programs, during a term that begins April 2011, the deal will include up to 800 new instant-ticket vending machines.

“Our performance in the fourth quarter of 2008 gives us confidence in the resiliency of our businesses, particularly during these uncertain economic times,” said Stefano Bortoli, Lottomatica Group’s chief financial officer. “These results and our overall annual growth reflect our intensified focus on financial discipline, cost control and cash management. This, combined with our manageable debt-repayment schedule, allows us to focus on free cash-flow generation during this difficult economic environment.”

A dividend of €0.68 (85.2 cents) per share – yielding a total payout of about €100.9 million – will be proposed at the annual shareholders’ meeting on April 28, the company said. If approved, the dividend will be payable May 21 to shareholders of record on May 18.

GTECH Corp. – a wholly owned subsidiary of Italy-based Lottomatica S.p.A. (Pink Sheets: LTTOY; Milan Stock Exchange: LTO) – has provided lottery technology and services to the R.I. Lottery since 1978. Together, the gaming technology, services and lottery operations companies have 5,900 employees in more than 50 countries. More information is available at www.gtech.com or www.GruppoLottomatica.it/eng.