Social Media Games And Slot Machine Sales, Boost IGT Earnings
International Game Technology (ITG), a well known manufacture of slot machines and social gaming has reported a modest increase in their profits for the second quarter, they attribute this increase to the growth of sales in slots machines and the social gaming.
The company posted earnings for the second quarter of $78.2 million, which represent 29 cents per share, this is an increase from $61.9 million, or a representation of 21 cents per share over the same period the previous year.
Year on year their revenues showed $600 million which is a increase of 11%, compared to the previous year of $541.2 million.
Analysis’s, that were polled by Yahoo Finance, said they expected IGT to earn 29c per share on the $541.6 million revenue.
Patti Hart, the CEO of IGT expressed pleasure with their momentum of the 2nd quarter, she said that this demonstrated the strength of their comprehensive strategy, which was to leverage their core business, broaden the distribution of their premier content, and the generation of their shareholder returns.
The companies earnings report showed that their gaming operations had a slight decline to $254.3 million, from the previous figure of $266.1 million, this was primarily because of the lower Mega Jackpot revenues. The Gross margins improved to 62% from last years 61%.
The average revenues, per unit daily, was down 6% to $49.26, from the 2nd quarter last year of $52.34, this was because of lower play.
The revenues from their product sales increased 16% year on year to $279 million, compared to the previous year of $240.8 million. The company also reported machines that were in use, had increased 40% to 14,300, over the 2nd quarter, this represented increased sales to Canada and also new casinos that opened.
IGT has said that their revenues from their social gaming franchises, that included the DoubleDown Casino, had increased by 94% over the 2nd quarter, to $66.7 million, up from from $34.3 million the previous year. This increase in revenue received a boost, from 20% jump, in active daily users, in the DoubleDown Casino of $1.69 million.
Ms. Hart expected the 2024 fiscal to be the 4th consecutive year of double digit growth for the company in adjusted earnings a share from their continuing operations.
Looking to the future, IGT is expecting a fiscal year of 2024 earnings per share, to be between $1.26 and $1.32.
IGT shares gained 59 cents, this is 3.53% closed at $17.30 on the New York stock exchange. The after hours shares increased 45 cents which is 2.60% to $17.75.
