IGT Enjoys Increase in Profits Thanks to Online Slots
The world’s largest maker of slot machines, International Game Technology, has reported a 41% increase in third-quarter profit.
Slot machine sales have increased 12% to $259.2 million thanks to deals in Canada and interactive revenue increased a massive 69% to $72.5 million. The only weak division was gaming operations which runs networks of machines such as “Wheel of Fortune” and saw revenue fall 4% to $247.2 million.
The CFO of IGT, John Vandemore, said that gaming operations is “the one that feels the brunt of consumer discretionary challenges the most. People aren’t spending as much as they used to on gaming-related activities.”
Net income rose to 25 cents a share ($65.7 million) from 16 cents a share a year earlier ($46.6 million). The results show that the company made the right decision to move into online gambling. Last year IGT bought Double Down Interactive, a maker of social casino games.
Daily active users of Double Down has risen 25% to 1.7 million and revenue per user rose by 60% to 40 cents a day. Furthermore Vandemore said that mobile revenue is now comparable to that of desktop computers.