Big Fish Gaming revenues up, but earning down due to heavier marketing.
Big Fish Gaming, the consistently profitable online social gaming arm of US gambling group Churchill Downs, continued to be the groups best performer in the quarter ended September 30, delivering an 18 percent rise in revenues to $122.3 million, although actual earnings slipped by a third to $23.4 million, mainly due to heavier marketing spend.
Whilst casual free-play game revenue at Big Fish was well up in double digits at $51.8 million, social casino results were 7 percent down y-o-y at $44,2 million. Although there were more users, on average they spent less. Premium games sales also waned 16 percent to $22.5 million.
The other online operations at CDI – the Twinspires online horserace wagering arm – posted a 9 percent year-on-year increase at $55.1 million with wagers up 14.3 percent, significantly outperforming the industry average.
Whilst not as impressive, in general the land assets of CDI delivered positive results in the quarter, enabling the group as a whole to post record revenue in the quarter at $303.4 million, an 8 percent year-on-year improvement.
Adjusted earnings fell 7 percent to $67.3 million, but net income rose significantly to $8.7 million.