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IGT Releases Weak Second Quarter Results

US gambling giant International Game Technology has released its second quarter 2014 financial results, showing a drop in revenues and earnings per share.

Key financial indicators for the period ending March 31st, 2014 were:

  • Total revenues fell 15 percent to $513 million

  • GAAP earnings per share from continuing operations decreased 66 percent to $0.10

  • Non-GAAP earnings excluded acquisition-related charges for DoubleDown, an impairment to certain receivables in Alabama, business realignment, and legal accruals.

  • Adjusted earnings per share from continuing operations declined 44 percent to $0.20

  • Social gaming revenues in the interactive division of the company increased 27 percent to $69 million and average bookings per daily active user grew 16 percent to 43 US cents.

  • The company returned $27 million to shareholders in the form of dividends

The biggest positive for the group during the period was IGT's interactive division, which saw the following results:

  • Social gaming revenues increased 27 percent to $69 million in the second quarter compared to the same period last year, and increased 6 percent sequentially, driven by an increase in both average daily active users and how much they spent on average.

  • Average DAU were 1.8 million, an increase of 5 percent over the prior year quarter.

  • Average bookings per DAU were $0.43, an increase of 16 percent over the same quarter last year.

  • DoubleDown DAUs reached 1,775 - up 5 percent compared with the same quater last year

  • Overall revenues from the interactive division topped $79.8 million (Q2-2013: $66.7 million) - a 20 percent improvement.

  • Social gaming, primarily DoubleDown Casino, delivered $68.8 million in revenues (Q2-2013: $54.3 million)

  • IGTi contributed $11 million (Q2-2013: $ 12.4 million - a decline of 11 percent

Commenting on the results IGT CEO Patti Hart said: "Looking forward, we are confident that we will be able to leverage our leaner cost structure, substantial R&D investments and premium brands to drive shareholder value."

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