IGT revenues fall 19% despite DoubleDown growth
Interactive revenues up 15% to $83.1m but fail to halt overall decline as IGT prepares for GTECH takeover
International Game Technology (IGT) has posted revenues of US$468m for the third quarter of 2014, a 19% year-on-year decrease despite continued growth in its social casino and real-money interactive gaming businesses.
DoubleDown continued to be a significant contributor as revenues jumped 17% on 2013 to $72m, driven by an 8% increase in daily active users (DAU) to 1.8m.
The social casino’s number of monthly active users (MAU) fell 10% during the quarter to 5.9m, average bookings per DAU were up 7% to $0.43.
Revenues from IGT’s B2B online slots business were up 2% on the same quarter last year taking total IGTi revenues to $83.1m in Q3. Total online revenues, including DoubleDown, increased 15% year-on-year.
In June IGT signed a deal with bwin.party to supply the online operator with its remote game server in New Jersey and bwin.party’s other dot.com markets.
The results come just weeks after GTECH revealed it is to acquire IGT in a $6.4bn deal, creating a global gaming giant with combined annual evenues of around $6bn. The Italian lottery giant will pay $4.7bn in cash and stock while it will also assume $1.7bn of IGT net debt.
“July saw the culmination of our process to evaluate strategic alternatives for IGT and our shareholders,” Patti Hart, IGT CEO, said. “We successfully balanced this effort during Q3 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,” she added.
Prior to the merger IGT announced it would cull 7% of its global workforce in a bid to realize cost savings of $30m by the end of the fiscal year, and an estimated $50m on an annual run-rate basis following a poor performance from its North America business.