IGT delivers mixed bag in Q1/2015 results

International Game Technology (IGT) delivered its first quarter fiscal year 2015 results Wednesday reporting a 17 percent decline in total revenues despite an extra week compared to the same period last year.

First Quarter 2015 results compared to Q1/2014 include:

–    A total revenue decrease of 17 percent to $451 million

–    Net income decreased 56 percent to $35 million

–    The extra week contributed revenues of $22 million along with $2 million in operating income.

–    An increase of 23 percent in social gaming revenues to $79 million and an increase of 11 percent in average DAU to 1.9 million.

–    Adjusted earnings per share decreased 24 percent to $0.19

–     GAAP earnings per share decreased 55 percent to $0.14

IGT attributed the performance in total revenue to a drop in product sales, partially offset by the increase in social gaming revenue.

IGT Interactive (IGTi) delivered robust results with an increase in combined revenues of 23 percent to $91.5 million.  Social gaming revenue increased 23 percent while mobile revenues now comprise 39 percent of total bookings, an increase of 68 percent.

IGTi said the 11 percent increase in DoubleDown’s average DAU was achieved by improving content and fine-tuning player retention and engagement strategies, however average MAU decreased 16 percent to 5.2 million primarily due to increased marketing costs.

“Our continued focus on profitability has resulted in strong gross margins this quarter, including improvements in gaming operations gross margins,” said Patti Hart, IGT Chief Executive Officer.  “While market challenges remain in the land-based casino business, our DoubleDown social casino generated a double-digit increase in both revenue and average daily active users in the quarter.”

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