Supplier News
US – Domestic slot sales drive IGT’s fourth quarter
By Phil - 11 November 2013
International Game Technology saw revenues increase nine per cent to $2.34bn for the fourth quarter and fiscal year ended September 30, 2013, primarily driven by North America growth in social gaming and machine sales.
For the year, social gaming revenues increased 151 per cent to $219m whilst sales of North America replacement slot machines were up 50 per cent to 32,900.
In the fourth quarter social gaming revenues increased 72 per cent to $61m whilst sales of slots in North America came in at 11,500 up 35 per cent.
“We are extremely pleased to report our fiscal year 2013 financial results,” said Patti Hart, CEO of IGT. “We continue to drive significant revenue and earnings per share growth through the successful execution of our strategy and disciplined approach to capital allocation. Our goal, as always, is to maximize our returns to shareholders through targeted share repurchases, consistent dividends and robust earnings growth.”
For the year, North America revenue increased 12 per cent to $1.84bn and international revenue was flat at $507m.
Installed base decreased primarily driven by a decline in North America MegaJackpots units.
Average revenue per unit per day in the quarter was $48.78, down four per cent over the prior year quarter primarily due to lower MegaJackpots yields and up two per cent sequentially reflecting positive international trends.
Revenues were relatively flat for the quarter, and up 12 per cent to $1.09 billion for the year primarily due to increased North America machine sales largely related to Canadian VLT sales and higher systems installations.
Gross margin decreased to 50 per cent while average machine sales prices declined to $11,600 in the fourth quarter, due to targeted promotional activity and product mix.
