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IGT Revenues Up

Wednesday July 25,2012 :  INTERACTIVE BUSINESS HELPS BOOST IGT THIRD QUARTER
 
Double Down acquisition starts to pay its way.
 
International Game Technology's third quarter results posted Tuesday show that the company's increasing presence in the online and interactive environment is starting to pay dividends, boosting revenues.
 
The primarily land casino supply company highlighted the following Q3 2012 numbers, comparing these with the same period in 2011:
 
* Revenues increased 9 percent to $533 million in the third quarter, primarily due to the interactive businesses and North America machine sales.
 
* Gaming operations revenues increased 13 percent to $301 million in the third quarter, primarily due to increases in the interactive businesses. Excluding the interactive businesses, revenues were flat.
 
* Revenue from product sales rose 5 percent to $231.6 million
 
* Net income fell 49 percent to $46.9 million.
 
* A 40 percent increase in total operating expenses to $207.1 million was mostly attributable to interactive operations.
 
* Gross margin decreased to 59 percent from 62 percent in the third quarter, primarily due to the inclusion of the interactive businesses and lower MegaJackpots yields.
 
* Excluding the positive impact from the interactive businesses, average revenue per unit per day in the third quarter was $50.20, down 4 percent sequentially and 7 percent over the prior year quarter, mainly due to lower MegaJackpots yields and a higher mix of lower-yielding units in the installed base.
 
* Double Down bookings per daily user were $0.25 in the third quarter compared to $0.24 in the second quarter subsequent to acquisition.
 
* Double Down monthly users were 5.2 million as of June 30, 2012, a decrease of 7 percent when compared to March 31, 2012.
 
Patti Hart, CEO of IGT, commented: “Our third quarter revenue growth and strong cash flows are reflective of our diverse business model. Against the backdrop of an inconsistent global economic recovery, we are generally pleased with this quarter’s results and remain on track to meet our fiscal year 2012 financial goals.
 
“The recent announcement of our $1 billion share repurchase is further evidence of our confidence in the outlook for IGT.”



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