Las Vegas-based IGT, the leading manufacturer of slot machines and casino game management systems, reported its first-quarter earnings Thursday.
Company: IGT (NYSE: IGT)
Revenue: $541.2 million (up 2.1 percent from the first quarter of 2013).
Earnings: $79.2 million (up 22.3 percent from the first quarter of 2013).
Earnings per share: 31 cents (up 29.2 percent from the first quarter of 2013).
What it means: IGT opened its new fiscal year with a slight revenue gain and double-digit percentage increases in earnings, thanks to significant gains in social gaming play and replacement video poker machine sales to tribal casinos. The company reported a revenue increase of 57 percent to $65 million in social gaming.
For the second consecutive quarter, revenue declined in North America MegaJackpots play. In the fourth quarter, the company said the base number of machines has dropped off from the same quarter a year ago. In the first quarter, revenue was off 8 percent to $223 million as a result of less play.
Advertising costs also climbed for IGT as it continued to market its DoubleDown social gaming products.
“In our fiscal first quarter we expanded revenue while maintaining strong operating income and cash flows despite market challenges,” Patti Hart, CEO of IGT, said in a statement accompanying the release of earnings. “We remain confident that our focus on content, distribution and maximizing shareholder value while improving efficiencies will position us for success in fiscal 2014.”