Weak fiscal Q2-2014 results from IGT

International Game Technology’s operating results for the second quarter ended March 31, 2014 show continued growth in the interactive division, but rather dismal numbers from the diverse group as a whole.

* Total revenues fell 15 percent to $513 million

* GAAP earnings per share from continuing operations decreased 66 percent to $0.10

* Non-GAAP earnings excluded acquisition-related charges for DoubleDown, an impairment to certain receivables in Alabama, business realignment, and legal accruals.

* Adjusted earnings per share from continuing operations declined 44 percent to $0.20

* Social gaming revenues in the interactive division of the company increased 27 percent to $69 million and average bookings per daily active user grew 16 percent to 43 US cents.

* The company returned $27 million to shareholders in the form of dividends

CEO Patti Hart said that management had taken decisive action to reduce IGT‘s cost structure and position the company for long-term earnings growth.

“Looking forward, we are confident that we will be able to leverage our leaner cost structure, substantial R&D investments and premium brands to drive shareholder value,” she said.

The interactive division gave a positive aspect to the results:

* Social gaming revenues increased 27 percent to $69 million in the second quarter compared to the same period last year, and increased 6 percent sequentially, driven by an increase in both average daily active users and how much they spent on average.

* Average DAU were 1.8 million, an increase of 5 percent over the prior year quarter.

* Average bookings per DAU were $0.43, an increase of 16 percent over the same quarter last year.

* DoubleDown DAUs reached 1,775 – up 5 percent compared with the same quater last year

* Overall revenues from the interactive division topped $79.8 million (Q2-2013: $66.7 million) – a 20 percent improvement.

*Social gaming, primarily DoubleDown Casino, delivered $68.8 million in revenues (Q2-2013: $54.3 million)

* IGTi contributed $11 million (Q2-2013: $ 12.4 million – a decline of 11 percent

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