Strong performance in IGT quarterly results

International Game Technology (IGT) delivered a strong performance in its quarterly earnings report this week.  Interactive and strong sales in the replacement of slot machines led to better-than-expected fourth quarter earnings causing a spike in the Company’s share price.

Fourth Quarter Highlights (compared to last year’s fourth quarter) include:

–  Total revenues increased 17 percent to $631 million
–  North America machine revenue increased 52 percent
–  GAAP earnings per share from continuing operations increased 65 percent to $0.33
–  Adjusted earnings per share from continuing operations increased 58 percent to $0.38
–  Sold 8,500 North America replacement units, up 67 percent

Fiscal 2012 Highlights (compared to last year) include:

–  Total revenues increased 10 percent to $2.15 billion
–  Interactive revenues increased 293 percent to $144 million
–  Shipped 44,200 total units, an increase of 23 percent
–  North America average machine sales price increased 2 percent to $14,500
–  Returned $546 million to shareholders in the form of dividends and share repurchases
–  Delivered third consecutive year of double-digit growth in adjusted earnings per share from continuing operations

IGT Interactive’s (IGTi) DoubleDown acquisition is paying off nicely.  Key highlights of Social and Interactive business areas in the fourth quarter include:

–  Revenue of $53.9 million, a 302 percent increase (Q4/2011: $13.4 Million)
–  Total Gross Margin of 62 percent, up 22 percent (Q4/2011: 22 percent)

Social Gaming:
–  Social gaming revenues increased 20 percent sequentially to $36 million, primarily driven by an increase in both daily active users and bookings per daily active user.
–  Gross Margin on social gaming of 61 percent
–  Daily active users (DAUs) were 1.4 million in the fourth quarter, an increase of 4 percent compared to the prior sequential quarter.

Interactive:
–  Interactive revenue $18.1 million, up 35 percent (Q4/2011: $13.4 million)
–  Gross Margin on interactive of 65 percent, up 27 percent (Q4/2011: 51 percent)

“Our strong fourth quarter financial results serve to highlight a very solid fiscal year 2012 for IGT. In the quarter, we leveraged our industry-leading content to increase revenues, ship share, margins and prices in our core North American business,” said Patti Hart, chief executive officer of IGT.

“For the full year, we increased total revenues by 10 percent, improved adjusted earnings per share by 12 percent, improved global machine shipments by 23 percent, and more than tripled our interactive revenues.

“We continue to effectively manage the distribution of our products to a diverse set of customers and we are well positioned to continue generating even greater revenues and earnings growth in fiscal year 2013.”

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