IGT Gets Boost From Interactive Business In Third Quarter

International Game Technology released its third quarter financial results on Tuesday, noting that interactive business boosted the company' bottom line during the period.

Key financial indicators for the third quarter were:

• Revenues increased 9% to $533 million in the third quarter, primarily due to the interactive businesses and North America machine sales.

• Gaming operations revenues increased 13% to $301 million in the third quarter, primarily due to increases in the interactive businesses. Excluding the interactive businesses, revenues were flat.

• Revenue from product sales rose 5% to $231.6 million

• Net income fell 49% to $46.9 million.

• A 40% increase in total operating expenses to $207.1 million was mostly attributable to interactive operations.

• Gross margin decreased to 59% from 62% in the third quarter, primarily due to the inclusion of the interactive businesses and lower MegaJackpots yields.

• Excluding the positive impact from the interactive businesses, average revenue per unit per day in the third quarter was $50.20, down 4% sequentially and 7% over the prior year quarter, mainly due to lower MegaJackpots yields and a higher mix of lower-yielding units in the installed base.

• Double Down bookings per daily user were $0.25 in the third quarter compared to $0.24 in the second quarter subsequent to acquisition.

• Double Down monthly users were 5.2 million as of June 30, 2012, a decrease of 7% when compared to March 31, 2012.

Commenting on the financial report, IGT CEO Patti Hart said: “Our third quarter revenue growth and strong cash flows are reflective of our diverse business model. Against the backdrop of an inconsistent global economic recovery, we are generally pleased with this quarter’s results and remain on track to meet our fiscal year 2012 financial goals."

“The recent announcement of our $1 billion share repurchase is further evidence of our confidence in the outlook for IGT.”