Double Down providing "accelerated growth" for IGT
Revenues up 13% for quarter " Double Down "outperforming expectations" according to CEO.
Gaming software supplier International Game Technology (IGT) has reported a 13% rise in revenues for the three months ending 31 March 2012, and announced plans to develop a mobile version of Double Down casino.
Revenues for the quarter rose from US$477m to $541.2m, pushing half-year revenues up from $928.2m to $986.8m. Gaming operations revenue was aided by growth in the group’s online operations, pushing revenues up 11% to $300.4m for Q2 2012, and up to $565m for the six month period, an increase of 8%.
Double Down Casino “ acquired in a deal worth $500m in January “ saw a 24% quarter-on-quarter increase in monthly active users, up to 5.6m, while IGT also acquired the Entraction poker network in May 2011, before renaming it the IGT Poker Network in January this year. This helped quarterly gross profits rise 8% from $167.4m to $181.6m. The company yesterday announced the release of an American Idol slot “ the latest slot game developed by IGT to be launched on Double Down.
However following the Double Down acquisition, operating expenses rose 27% year-on-year from $154.5m to $195.6m, pushing operating income down from $128.1m to $118m, an 8% drop from the same period in 2011. Hart claimed the company was “responsibly focused on first reducing risk,” and still remains “confident in [IGT’s] ability to achieve [its] annual financial goals.”
Speaking in the company’s investor relations call following the announcement, IGT CEO Patti Hart said the company was planning to develop a mobile version of Double Down: “The addition of Double Down to our interactive group is providing accelerated revenue growth.
“Our planned product launches, coupled with efforts to expand distribution onto mobile platforms will allow [Double Down] to contribute to strong top-line revenue growth “¦ We’ve only had it for around 85 days, so not a full quarter yet, but we feel very comfortable that it is outperforming expectations,” she said.
Product sales, meanwhile, saw a 16% rise in revenues, aided by an increase in unit sales and higher selling prices, with revenues up to $240.8m, pushing gross profit up by 15%, rising to $132m. This was aided by the launch of the company’s cloud-based solution, with Hart revealing that a number of companies were preparing to launch on the platform.
Betfred also became the first operator to sign up to have its sites hosted by IGT’s Gibraltar datacentre, with the software supplier claiming to be the only pure B2B company to be licensed in the jurisdiction.
Commenting on the results, Hart said: “As expected, our financial results are strengthening as we move through the fiscal year “ evidenced by our growth in both revenues and earnings in our second quarter.”
“Every aspect of our business is providing a meaningful contribution to our strong financial performance. It’s gratifying to see the effort of our employees and the proficiency of our strategic investments generating returns for our shareholders,” Hart explained.