IGT suffers losses in second quarter of 2014
Gaming products designer and manufacturer International Game Technology (IGT) has cited the introduction of a reduced “cost structure” as the main reason behind a year-on-year loss in revenue during the three months to March 31, 2014.
The company posted total revenue of $512.8 million (€375.5 million) in the second quarter of fiscal 2014, a decrease of 15% on the $600 million achieved in the corresponding period last year.
Operating income fell 44% from $129.3 million in Q2 of 2013 to $72.1 million in the latest quarter, while net income also dropped to $25.7 million, down 67% from the $78.2 million last year.
In addition, adjusted earnings per share also fell 44% from $0.36 in the second quarter of fiscal 2013 to $0.20 in the latest quarter.
Despite the disappointing results, IGT did record an increase in social gaming revenue, which grew 27% to $69 million in the quarter.
In addition, IGT’s DoubleDown Casino social gaming offering also recorded a 5% increase in daily active users during Q2, with bookings per daily active user up 16% to $0.43.
Patti Hart, chief executive officer of IGT, said despite the mostly negative results in Q2, she is confident that the cost-saving measures implemented by the company will encourage future growth.
“During the quarter, we took decisive action to reduce IGT's cost structure and position the company for long-term earnings growth,” Hart said.
“Looking forward, we are confident that we will be able to leverage our leaner cost structure, substantial R&D investments and premium brands to drive shareholder value."
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