IGT says interactive gaming helps boost revenue

The unit’s DoubleDown Casino on Facebook increased its user base by 24 percent in the quarter to 5.6 million people, IGT said. That’s an indication of strong interest in what could be a platform for online gambling should it be legalized in the United States.

IGT committed us$ 255 million in cash up front for Double down, but the deal may end up costing it us$ 505 million for employee retention and performance payments over three years. Despite the revenue improvement, IGT’s quarterly profit fell.

The company posted a profit of us$ 61.9 million, or 21 cents per share, down from us$ 69.6 million, or 23 cents, in the year-ago quarter.

Factoring out certain nonrecurring acquisition costs and other one-time expenses, the company said, operating income grew 10 percent to us$ 144.2 million. Operating income includes operating expenses but doesn’t include interest and tax expenses or one-time items.

Besides the extra interactive revenue, IGT said, gaming operations revenue increased, thanks to an increase in the number of slot machines and other gaming devices it leases to casinos. Its installed base of devices at the end of the quarter was 56,100 machines worldwide, up 7 percent. In all, lease and interactive revenue grew 11 percent to us$ 300.4 million in the quarter. Product sales increased 16 percent to nearly us$ 241 million, the company said.

“Our financial results are strengthening as we move through the fiscal year — evidenced by our growth in both revenues and earnings in our second quarter,” IGT CEO Patti Hart said in a statement. “Every aspect of our business is providing a meaningful contribution to our strong financial performance.”