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US – IGT highlights social gaming drive in third quarter

International Gaming Technology’s social gaming division has helped drive profit and revenues in the third quarter with revenues increasing nine per cent to $579m.

IGT revealed that this jump was primarily due to ‘substantial increases in North America product sales and social gaming.’ Social gaming revenues increased 105 per cent to $61m and average revenue per daily active user grew 60 per cent to $0.40.

DoubleDown revenue reached $61.4m, more than double the revenues generated in the same quarter in 2012 and up 13 per cent over the second quarter.

IGT’s revenues from slot machine increased by 12 per cent to $259.2m in the quarter, driven by an increase in Canadian VLT customers. It had 56,700 slot machines in the global market at the end of the quarter.
Patti Hart, CEO of IGT, said: “We are pleased to report another quarter of strong financial performance demonstrated by growth in revenue, operating income and EPS. Our momentum continues and is bolstered by our focused attention on the execution of our business strategy and positive leverage from the broad distribution of our best-in-class content.”

Revenue from gaming operations, in which IGT shares revenues with casino operators, dropped by four per cent to $247.3m due mainly to lower revenue from the company’s MegaJackpots games.

Wells Fargo Securities gaming Analyst Cameron McKnight claimed revenues from social gaming had protected any weakness in its IGt’s land-based business.

“IGT has a well-diversified portfolio and pipeline of game content,” he said. “We believe IGT’s advantage is its deep game library, which can easily be converted to social games. Management has noted its goal is to convert one game every other week, and at that rate, it has enough existing content to last 10 years.”