DoubleDown takes IGT to new heights
Revenues from social gaming division grew by 31% in Q2 2013 compared to the same period last year
Revenues from social gaming helped IGT post an 11% year-on-year rise in overall revenues during the second quarter of 2013, the has company announced in its results for the three months ended 31 March 2013.
The slot manufacturer and gaming software provider saw turnover from its social gaming division, DoubleDown Interactive, increase by 31% in the quarter to $54m compared to Q1, driven by average revenue per daily active user (DAU) growing by 19% to $0.37. Average DAU were 1.7 million in the second quarter, an increase of 16% compared to Q1 and an increase of 25% compared to Q2 2012.
Overall revenues reached $600m in the period up from $541.2m in Q2 2012, also boosted by growth in North American machines sales. CEO Patti Hart said she was pleased with the “momentum” gained in the second quarter. “[It demonstrates] the strength of our comprehensive strategy “ leveraging our core business, broadening the distribution of our premier content, and generating shareholder returns,” Hart said.
“As we continue to deliver on this strategy, we expect that this will be our fourth consecutive year of double digit growth in adjusted earnings per share from continuing operations,” she added.
The results follow impressive growth shown in the company’s previous results, which revealed a 320% year-on-year rise in first quarter revenues from online operations.
DoubleDown was acquired in a deal worth $500m in January 2012 and remains in the top five most popular Facebook applications. IGT has also successfully rolled out a B2B social gaming offering, signing agreements with more than 20 US casinos to offer the DoubleDown Casino application on their websites.
“We remain confident that our investment in DoubleDown will yield long-term shareholder return, well in excess of our cost of capital,” said Hart in a earnings call. She added that regulatory progress in New Jersey was a “pivotal moment” for the company.
“IGT is well positioned to capitalise on this opportunity, given our proven track record in this business, as well as our experience in social gaming,” Hart said. “We firmly believe that our success is aligned with the success of our customers as we enhance their revenues by extending our premier class casino content into their branded environment.”