IGT’s DoubleDown Casino Records 105% Boost In Q3 of 2013
The Nevada-based International Game Technology (IGT) is one of the leaders in manufacturing and distributing of gaming machines and systems for online gaming markets. One of their most controversial acquisition in recent years was that of social gaming company Double Down Interactive. When they acquired Double Down interactive in 2012 for a whopping $500 million many eyebrows were raised but they seem to have had the last laugh.
With their release of Q3 earnings ending June 30 for 2013 this acquisition seems to have been a prudent move w. Their Q3 earnings were excellent overall. The highlights include:
– A revenue rise of 8.7% to $579 million due largely to their growth of their social casino gaming division including DoubleDown Casino.
– Net income of $65.7m which is an increase of 40% from the $46.6m of the same period last year.
– Earnings per share rose from $0.23 to $0.33.
– Slot Machine sales increased by 12% to $259.2m due largely to unit replacements in North America with IGT having over 56,700 slots in the market.
The most interesting data was from their DoubleDown Casino product which reported an increase of 13% rose from Q2 but more significantly a massive 105% rise from Q3 in 2012.DoubleDown’s other impressive figure included:
– DAU’s rising by 25% to 1.7m in Q3
– MAU rising by 28% to 6.7m.
– Revenues per user rose 50% to 60 cents per day.
CFO John Vandermore was delighted with the revenues as they were higher than analysts expected in a tough international market. On the social network arena DoubleDown Casino performed excellently as well and are the third highest grossing app on Facebook which as Vandermore pointed out is impressive as they are not restricted to social casino aps. DoubleDown also overtook rival Zynga Poker to make them the top grossing social game on Facebook.
With all these positive results the only dampener could be IGT’s gaming operations which fell by 4% to $247.3m which IGT CEO Patti Hart blamed on consumers watching their budgets. Another area in which DoubleDown is expanding is their convergence with land based casinos. The trend of partnering social casino games on brick and mortar casinos websites has dual advantages for both sides as they each get to expand their target audience and provide an improved overall gaming experience.
CEO Hart summed up their aspirations saying that IGT intend on becoming,” a global gaming ecosystem that is ubiquitous across platforms and devices, where scale and breadth of product and broad distribution of content will matter.”