Internet betting giant International Game Technology has posted their first quarter 2014 financial results, noting positive growth in several areas.
Key financial indicators for the quarter ending December 31st, 2013 were:
Total revenues up 2% to $541 million
GAAP earnings per share increased by 29% to $0.31, althoughh adjusted eps lagged 11% at $0.25.
Strong social gaming performance with y-o-y revenues up 57% to $65 million and average bookings per daily active user grew 35% better at $0.42
The firm shipped 6,100 North America replacement units to land casinos, up 20%
Overall R&D costs up 11% at $60.3 million
Marketing and admin costs rose 18% to $117.8 million
IGT returned $226 million to shareholders in the form of share repurchases and dividends
The interactive division's social gambling casino Double Down was GAAP accretive in the first quarter
Social gaming generated revenues of $64.8 million, an increase of 57%
IGTi (online gambling) revenues reached $9.8 million - down 16% on last year, although profits were up 5% due to lower royalty expenses. Developments in US online gambling legalization could produce further benefits in this area in future.
Margins were respectively 62% (up 2%) and 64% (up 13%)
Commenting on the results, IGT CEO Patti Hart said, “In our fiscal first quarter we expanded revenue while maintaining strong operating income and cash flows despite market challenges. We remain confident that our focus on content, distribution and maximizing shareholder value while improving efficiencies will position us for success in fiscal 2014.”