IGT, one of the world’s largest gaming companies, saw revenues fall 15 per cent in the three months to March 31.
The company reported that total revenues for the period dropped to $513m, compared with the $600m recorded in the same period last year. GAAP earnings per share, meanwhile, fell 66 per cent to $0.10.
Revenues from its gaming operations were down nine per cent to $230m, primarily due to lower MegaJackpots revenue, while its installed base decreased six per cent.
Revenues from product sales decreased 27 per cent to $203m during the three-month period. This was attributed to lower machine unit volume, with the most significant decrease seen in North American replacement units as the prior-year quarter benefited from 3,500 Canadian replacement units.
The company’s interactive division posted more positive results, however, with revenue up 20 per cent to $79.8m. This was largely due to a 27 per cent increase in social gaming revenues, which accounted for $69m of the total. Earlier this week, the company announced that it had appointed Will Daugherty as general manager of DoubleDown Interactive.
"During the quarter, we took decisive action to reduce IGT's cost structure and position the company for long-term earnings growth," said Patti Hart, CEO of IGT. "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."
