We will also be discussing certain financial measures such as adjusted EBITDA, which is a non-GAAP measure. A definition and reconciliation of this and other financial measures we use and discuss can be found in today's earnings release, as well as our most recent Form 10-Q.Now, I will turn the call over to Gavin Isaacs. Michael Gavin Isaacs Thank you, Julia, and good afternoon. Moving to the agenda for this afternoon's call, I will give some commentary about the highlights from the third quarter, Lin will then go through the key metrics, and then I will give a brief G2E sneak peek before we take any questions. The third quarter results demonstrated that continued execution against our strategic initiatives is a successful formula for driving long-term shareholder value. Growing recurring revenue, international expansion and new product innovation, proving its value in the marketplace were the central themes of the quarter, helping drive $63.4 million in revenue, a record for Q3. The foundation of our financial model remains recurring revenue streams, and this quarter once again demonstrated how fully committed we are to growing this key metric. Recurring revenue was approximately $30 million, up 12% year-over-year and represents the 15th consecutive quarter of growth. The MD3 is a big driver of that growth, exceeding our expectations as a superior replacement product. Our Proprietary Table Games segment has steadily continued to create new recurring revenue opportunities, and the breadth and depth of our brands has never been better. The upgrades we are making to our games have just -- have been home runs, and in many ways, we are just getting started. This was a notable quarter for our slot machine business in that it marked a significant installation into Asia, consistent with our strategy to grow the business internationally. The early success of our Asian-themed titles recently launched to G2E Asia confirms that the targeted investments in our business are working.
We are very pleased by the momentum we have generated over the first 9 months of this fiscal year. Q3 year-to-date revenue of approximately $186 million is up 14% year-over-year, and diluted earnings per share growth is 28%, excluding expenses incurred in connection with the terminated Ongame acquisition. What is even more encouraging to me is how we have achieved this growth and the many sources that have contributed to it within the year.There were many significant operational highlights for the quarter which are summarized on Slides 4 and 5. Beginning with the Utility segment, we posted 8% year-over-year growth in the quarter with total revenue of $24.4 million. This performance was driven by increased sales activity, strong lease placements throughout the year and MD3 momentum. The sales came from a number of sources namely replacement of previously sold shufflers in Macau and approximately $2 million from several new openings in the U.S. At the end of the third quarter, our total MD3 installed base was an impressive 1,381 units, up 431 units from last quarter with approximately 53% of the total base on lease. This quarter marked our largest quarterly install of MD3s on lease with 187 placements. Our MD3 rollout strategy has been a key driver of Utility growth since its launch a little over a year ago. And as of Q3, its contribution is approaching $1 million in recurring revenue a quarter. On a Q3 year-to-date basis, our average lease prices are up 4% driven by new shuffler leases and ideals ramping up to full pricing. Recurring revenues in PT -- in Proprietary Table Games hit another all-time high of $12.4 million in the quarter, fueled by contributions from every category: Premium games, side bets and progressive upgrades. We grew our lease installed base of premium games, side bets, progressives and add-ons by 1,372 units year-over-year. These new additions will add approximately $2 million to our annual recurring revenue stream. 60 net placements of Fire Bet in the quarter underscores the success of our brand accumulation strategy and proves that our acquisitions are translating into growth. There are now 1,139 progressive upgrades and 341 add-ons contributing approximately $7.7 million in annual lease revenue on a trailing 12-month basis. These upgrades are a great example of innovating within the Table Games segment and creating more opportunities for recurring revenue from existing units in the field. Read the rest of this transcript for free on seekingalpha.com