NEWS
Bally, IGT, Boyd Gaming: good times may be back
Optimistic mood after strong quarterly figures
Positive financials emerging from major players on both the supply and operator sides of the casino industry suggest that investment in equipment, and spend by players, may no longer be feeling the effects of the economic downturn as badly as feared – and not just in the supercharged Asian markets. There was even optimism from one operator on Atlantic City, whose obituary as a gaming capital was being written only months ago.
At the top of the good-news list, however, comes Bally Technologies, which enjoyed record third-quarter revenue for the period ending 31 March, up 20% year-on-year to $229m. “The past several months have been momentous, with DM Tournaments helping set two Guinness World Records, numerous product awards received, and record attendance at our Systems Users Conference,” said Richard M. Haddrill, the firm’s CEO. Added Ramesh Srinivasan, President and Chief Operating Officer: “This
quarter’s operating results are a testament to our continuing progress in all major business areas. Our Alpha 2 Pro Series titles are performing well in various parts of the world, our gaming operations installed base is expanding driven by products like Grease, and our systems business continues to move forward both in terms of product improvement and the number of new customers joining.” Bally also appeared to be defying the downward pressure on prices for gaming
Average
selling price of games grew 10%
equipment that some have suggested economic conditions are forcing. The average selling price of new gaming devices increased 10% during the quarter to $16,978 per unit from $15,482 last year, “primarily as a result of product mix and an increase in average selling price from international sales”, the firm said. However, that did not translate straight into profit: in fact, gross margins were slightly down, largely due to higher manufacturing costs for the Pro Series cabinets. The good fortune was not limited to Bally. At International Game
Technology (IGT), for example, the same quarter – the second in IGT’s fiscal year – saw revenue up 13% to $541m. There was positive news on the operator front too with Boyd Gaming’s financials. Its first quarter, also ending 31 March, brought a year-on-year revenue rise of 12.1% to $564.9m. “Our first-quarter results were led by strong performances at our operations outside of Nevada, with double-digit earnings growth at a majority of these properties,” said Keith Smith, President and CEO. Revenue at Boyd’s Las Vegas casinos serving the locals market was only slightly up, and downtown increased by just 2.4%. By contrast, the real powerhouses for Boyd in the quarter were its Midwest and southern properties, with revenue up 32.4%. Said Executive Vice President and Chief Operating Officer Paul Chakmak: “Our Midwest and south properties posted an exceptional operating performance. In Nevada, business volumes are holding steady, and we anticipate we will see more substantial growth once economic recovery takes firmer hold.” The firm was bullish on Atlantic City business, too. “Borgata contributed significantly as the property reinforced its position as the leading resort in the market, posting substantial growth against heightened regional competition. While it is early, we would note that we have not seen any meaningful impact from the opening of a new competitor,” said CEO Smith.
4 MAY 2012 INBRIEF
MERSEY MISSION UK operator Genting has invested £2m in refurbishing its Genting CLub at Queen Square in Liverpool. Additions include a new bar and restaurant, and expanded gaming floor.
WE SHALL OVERCOMEWorkers from Station Casinos in Las Vegas fasted for seven days in a protest over union representation.
WE SHALL OVEREAT Chef Masa Takayama has launched a teppanyaki restaurant at Aria in Las Vegas.
MUSCOGEE MANAGEMENT Newave is installing its software at ten Oklahoma casinos operated by the Muscogee Creek Nation.
ON THE SIDE Deq Systems is to be exclusive distributor of the Lucky Lucky Blackjack side bet in the US. A hundred units are already installed.
MALTESE FORUM This year’s Malta iGaming Seminar has been rescheduled for 11-12 September in response to delegate requests.
AGS OK American Gaming Systems has gained Nevada licences to manufacture and distribute gaming devices, and operate a slot route.
NEBRASKA NOVELTY Table Trac is providing a casino management system to Nebraska’s first venue, the Ohiya Casino and Bingo, operated by the Santee Sioux Nation.
OXFORD ORDERS JCM Global is to install its iVizion bill validators on all 527 devices at the new Oxford Casino in Maine. The casino is also buying Aristocrat’s Oasis 360 casino management system.
COUPON COUP FutureLogic is to launch version 2.0 of its PromoNet system at G2E Asia in Macau this month.
TALKING TOGETHER Cannery Group Las Vegas has connected ten Pai Gow progressives with Deq’s Real Link.
IGT ORDERS Two BorderTown Casinos properties are to deploy the Advantage and sbX systems from International Game Technology.
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