Gaming device maker and social gaming operator International Game Technology (IGT) saw revenue fall but profits jump in its fiscal Q3 earnings report. Revenue for the three months ending June 30 fell 19% to $467.6m but profit rose 10% to $72.1m as the company reaped the rewards of an aggressive cost-cutting program, including the termination of 7% of its global workforce in March.
Sadly, the company used its recent acquisition by GTECH to dodge the traditional post-earnings call with analysts but CEO Patti Hart credited the increased profit to “effective cost management” that had “improved efficiencies in a challenging industry environment.”
The decreased revenues were most strongly felt in the product sales division, which slumped 36% to $166.9m on lower machine unit volume. The quarter also compared unfavorably with the previous year’s Q3, which benefited from 3,300 replacement units in Canada and 900 extra units in Illinois.
Revenue at the gaming operations division fell 12% year-on-year to $217.6m. Blame was assigned to an 11% decrease in the company’s installed base, particularly in its international markets. Average revenue per unit per day fell 4% on lower MegaJackpots performance.
IGT Interactive revenue was (again) the lone bright spot, rising 15% to $83.1m. The real-money gambling IGTi division reported a 2% revenue rise to $11.3m while DoubleDown Interactive, the company’s burgeoning social gaming division, saw revenue rise 17% to $72m. DoubleDown’s daily active user (DAU) base rose 8% to 1.83m while bookings per DAU rose 7% to $0.43. Monthly active users spoiled the otherwise stellar report card by falling 10% to 5.97m as the company continued to focus on improving the conversion of players to payers. Over the first nine months of IGT’s fiscal year, DoubleDown’s revenue has risen 31% to $205m, about 40% of what IGT paid for DoubleDown two and a half years ago.
