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IGT Releases Fourth Quarter Financial Results

US based gambling giant International Game Technology announced its fourth quarter 2012 financial results this week, noting higher than expected earnings thanks to strong slot machine sales and interactive entertainment.

Operational highlights for the quarter were:

  • Total revenues increased 17% to $631 million

  • North America machine revenue increased 52%

  • GAAP earnings per share from continuing operations increased 65% to $0.33

  • Adjusted earnings per share from continuing operations increased 58% to $0.38

  • Sold 8,500 North America replacement units, up 67%

Key financial indicators for the full year were:

  • Total revenues increased 10% to $2.15 billion

  • Interactive revenues increased 293% to $144 million

  • Shipped 44,200 total units, an increase of 23%

  • North America average machine sales price increased 2% to $14,500

  • Returned $546 million to shareholders in the form of dividends and share repurchases

  • Delivered third consecutive year of double-digit growth in adjusted earnings per share from continuing operations

The company's DoubleDown subsidiary posted results of:

  • Revenue of $53.9 million, a 302% increase (Q4/2011: $13.4 Million)

  • Total Gross Margin of 62%, up 22% (Q4/2011: 22%)

IGT's social gaming operations had the following highlights:

  • Social gaming revenues increased 20% sequentially to $36 million, primarily driven by an increase in both daily active users and bookings per daily active user.

  • Gross Margin on social gaming of 61%

  • Daily active users (DAUs) were 1.4 million in the fourth quarter, an increase of 4% compared to the prior sequential quarter.

The interactive division posted:

  • Interactive revenue $18.1 million, up 35% (Q4/2011: $13.4 million)

  • Gross Margin on interactive of 65%, up 27% (Q4/2011: 51%)

Commenting on her company's performance, IGT CEO Patti Hart said: “Our strong fourth quarter financial results serve to highlight a very solid fiscal year 2012 for IGT. In the quarter, we leveraged our industry-leading content to increase revenues, ship share, margins and prices in our core North American business."

“For the full year, we increased total revenues by 10%, improved adjusted earnings per share by 12%, improved global machine shipments by 23%, and more than tripled our interactive revenues."

"We continue to effectively manage the distribution of our products to a diverse set of customers and we are well positioned to continue generating even greater revenues and earnings growth in fiscal year 2013.”

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