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IGT Releases Third Quarter 2014 Financials

Land based betting firm IGT has released its latest financial results, noting a drop in revenues and lower earnings per share.

Key financial indicators for the latest quarter were:

  • Year-on-year total group revenue down 19 percent to $468 million;

  • Operating income down 11 percent at $109.6 million, but net income up 10 percent at $72.1 million;

  • GAAP earnings per share up 16 percent to $0.29

  • Adjusted EPS down 15 percent to $0.28

Other performance results included:

  • Social gaming revenue over the quarter increased 17 percent to $72 million and average bookings per daily active user grew 7 percent to $0.43;

  • Social gaming revenue increased 31 percent to $205 million in the first nine months, driven by increases in average DAU and average bookings per DAU.

  • Average DAU AT DoubleDown Casino was 1.8 million, an increase of 8 percent over the prior year quarter.

  • Average MAU were 6 million, a decrease of 10 percent primarily due to increased focus on improving player conversion rates.

  • IGTi delivered $11.3 million - up 2 percent;

  • Gross margin came in at 63 percent, maintaining the same level as in the same quarter last year.

Commenting on the results IGT CEO Patti Hart said, "July saw the culmination of our process to evaluate strategic alternatives for IGT and our shareholders. We successfully balanced this effort during the third quarter with our focus on continuous improvement in our business evidenced by expanded gross margins and expected EPS performance. Our effective cost management has improved efficiencies in a challenging industry environment and has positioned us for future market opportunities."

Earlier this month IGT announced that it had been acquired by GTech in a multi-million dollar deal.

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