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SOCIAL GAMING CONTINUED TO DELIVER FOR C.D.I.
29th October, 2016 at 07:32:22
Big Fish Gaming revenues up, but earning down due to heavier marketing.
Big Fish Gaming, the consistently profitable online social gaming arm of US gambling group Churchill Downs, continued to be the group's best performer in the quarter ended September 30, delivering an 18% rise in revenues to $122.3 million, although actual earnings slipped by a third to $23.4 million, mainly due to heavier marketing spend.
Whilst casual free-play game revenue at Big Fish was well up in double digits at $51.8 million, social casino results were 7% down y-o-y at $44,2 million. Although there were more users, on average they spent less. Premium games sales also waned 16% to $22.5 million.
The other online operations at CDI - the Twinspires online horserace wagering arm - posted a 9% year-on-year increase at $55.1 million with wagers up 14.3 percent, significantly outperforming the industry average.
Whilst not as impressive, in general the land assets of CDI delivered positive results in the quarter, enabling the group as a whole to post record revenue in the quarter at $303.4 million, an 8% year-on-year improvement.
Adjusted earnings fell 7% to $67.3 million, but net income rose significantly to $8.7 million.
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