The third quarter of 2013 has seen huge profit for IGT (International Game Technology), with a forty one per cent increase thanks to the rise in purchases from land based casinos as well as the increase in online casino game revenue. Their statement from Las Vegas shows sales of $579 million, which is up almost nine per cent from a year earlier.
The largest increase in profit was in their online slot machine games division, with interactive revenue jumping by sixty nine per cent to $72.5 million. Gaming operations, the division of the company which runs networks of machines such as the “Wheel of Fortune”, was the weakest part of their operations with a four per cent drop. “It’s the one that feels the brunt of consumer descretionary challenges the most,” Chief Financial Officer John Vandemore says. “People aren’t spending as much as they used to on gaming-related activities.”
Mobile customers jumped by forty one per cent sequentially, with revenue per customer on iPads and smart phones at a similar rate to that of desktop computer users. “That’s good,” Vandemore said. “A lot of mobile applications are monetized at a lower clip.”
The results of their foray into online gambling and the increase in profits there shows just how good their recent decisions have been, after they saw some criticism last year for their purchase of Double Down Interactive. The online social media games put out by the Double Down Casino cost them $500 million, and many in the business were sceptical – after all, customers there can buy chips with real money but can also get them for free, and there is no chance to win real money. However, their purchase has paid off, with a year on year increase of online profits from $46.6 million up to $65.7 million. Chief Executive Officer Patti Hart has been quick to underscore the wisdom of the choice that they made there, with the daily users at Double Down having increased year on year by twenty five per cent – and revenue per user rising sixty per cent too to give them bigger profits.