International Game Technology has reported a 26 percent increase in second-quarter profit, as North America slot-machine sales and social gaming performance rise.
Total revenues during the period ended 31st March 2013, increased 10.9 percent year-on-year to $600m with net earnings of $78.2m, up from $61.9m the previous year. The results beat analysts’ estimates, as the company is moving forward after concluding its recent proxy battle with former industry executive Jason Ader.
Patti Hart, IGT CEO, commented: “We are very pleased with our momentum through the second quarter, demonstrating the strength of our comprehensive strategy, leveraging our core business, broadening the distribution of our premier content and generating shareholder returns.”
In the company’s earnings report, key attributable factors were a 25 percent increase in North America product sales revenue and an increased installation base, driven by a global rise of lease operations. Sales related to Canadian VLT customers, as well as new casino openings in the US, also fuelled the growth. Total slot machine sales, the company’s primary business, grew by 16 percent to $279m.
Social gaming revenues in the second quarter increased 31 percent sequentially to $54m, primarily driven by an increase in both average daily active users (DAU) and average bookings per DAU of DoubleDown Casino. IGT said that its free-to-play social casino on has propelled to the top five Facebook apps and is among the top 10 downloaded iPad apps.
Revenues related to social gaming were up a staggering 94 percent to $66.7m from a year earlier. Average DAU were up 16 percent year-on-year to 1.7 million in the second quarter, with average bookings per DAU increasing by 19 percent sequentially and 54 percent over Q2 2012.
Based on current expectations and the operating results for the second quarter of 2013, IGT is increasing its fiscal year 2013 guidance for adjusted earnings from continuing operations to $1.26 to $1.32 per share.
“It was our best second quarter in five years,” added Hart, “We expect that this will be our fourth consecutive year of double digit growth in adjusted earnings per share from continuing operations.”
International Game Technology is a global leader in the design, development and manufacture of gaming machines and systems products, as well as online and mobile gaming solutions for regulated markets.