The latest third quarter reports show success for IGT in Canada, as the slot machine company see huge revenue increases across the board thanks to their acquisition of Double Down Casino last year. The free to play social gaming app only accounts for a certain amount of their profits however, and though analysts were sceptical of success there it has certainly been gained – along with increased sales of machines to land based casinos in Canada and Illinois.
It is clear that they have been making some good business decisions lately, with their Double Down casino slots online accounting for $61.4 million out of the $579 million revenue that the company posted during the third quarter of 2013. The average user on Double Down is now spending sixty per cent more on the site than they were one year ago, causing analysts to perform a u-turn on their previous opinion of the acquisition. “IGT continues to show improving results out of what is becoming a solid business,” Macquarie Securities gaming analyst Chad Beynon said.
“It’s not often we can talk about a 105 percent increase in revenues, but DoubleDown allowed us to do that,” added CFO for IGT, John Vandemore ; however, this is just one area in which they have done well. There are holding on to their title as the world’s leading slot machine manufacturer, with plenty of slot machine-like video lottery terminals being sold in Canada and Illinois over the last quarter. Their continued goal is to develop games that can be used across all of their current platforms – so that land based casino games will have online versions, and these two will also be available as social media platform games.
“We will continue to focus on our core competency,” Vandemore said. “We are always investing time and energy into creating good games.” However, not everyone is confident that this good news can continue, as the market in land based games may become saturated, forcing them to look elsewhere. “Looking forward, we remain cautious on IGT shares with continued weakness in the core gaming operations business and uncertainty over future replacement sales following aggressive promotions earlier in the year,” says Eilers Research principal Todd Eilers.