IGT's online B2B business fails to grow in 2014
Strong performance from social gaming division helps offset a 6% fall in online B2B slots revenues
International Game Technology’s (IGT) interactive business recorded a 22% year-on-year rise in full-year revenues as stunning growth in its social gaming business made up for a decline in its online B2B slots arm.
Revenues from the firm’s social casino DoubleDown Interactive soared 28% year-on-year to US$280.5m, up from $218.5m in 2013, after increases in both daily active users (DAU) and bookings per DAU.
However IGTi, the company’s B2B online slots business, posted a 6% drop in revenues to $43.7m from $46.5m last year with total online revenues including DoubleDown up from $265m in 2013 to $324.2m.
The Las Vegas-based gaming supplier, which is set to be acquired by GTECH in a $6.4bn deal, posted a 12% drop in total group revenues of US$2.1bn for the fiscal year, down from $2.3bn in 2013, following a decline in product sales and gaming operations.
Revenues from product sales declined 22% year-on-year to $847m, while its gaming operations business recorded an 11% fall due to installed base declines.
“Our focus on profitability resulted in significant improvements in our gross margins for the year, and in our gross and operating margins for the fourth quarter, in large part due to cost saving actions we took earlier this year,” IGT’s chief executive, Patti Hart, said.
“While we continue to see muted demand in our core business, our DoubleDown Casino business drove 28% revenue growth for the full year while maintaining industry-leading player monetisation rates and growing daily active users,” she added.
In July GTECH announced its plans to create a global gaming giant with combined annual revenues of around $6bn by acquiring IGT.
Earlier this week the Italian lottery and gaming supplier secured $2.6bn in financing and announced its shareholders had approved the proposed buyout.