Inside Asian Gaming

INSIDE ASIAN GAMING | September 2011 72 Master added that the rise applied to most of its product lines. Strong sales of its recently-launched Equinox slots cabinets and games helped boost results. The company makes a wide range of casino products including its eponymous secure card shufflers and electronic table games. The company and analysts pointed to 11% growth in recurring revenue as a highlight of the figures. A key aim identified by management is to shift the company toward a leased-based revenue model on many of its products to provide solid and sustainable revenue growth in future reporting periods. Bally reports fiscal 2011 results Bally Technologies Inc announced diluted earnings per share (diluted EPS) of US$0.51 and US$1.82 on revenue of US$214 million and US$758 million for the three months and year ended 30th June 2011, respectively. Bally said the current quarter was negatively affected by debt extinguishment costs of US$0.05 per diluted share. It related to the company refinancing its credit facility to decrease borrowing costs and to repurchase 9.9 million shares of its common stock in a tender offer completed in May 2011. “The highlight of Bally’s fiscal 2011 was the positioning we accomplished for the future,” said Richard M. Haddrill, the company’s Chief Executive Officer. “We grewgaming operations revenue by 11% and established a strong base of innovative games going forward. We also successfully commercialised two major new product lines, our ALPHA 2™ gaming platform, and the iVIEW DM™ floor-wide network. Further, we invested in key new customers and markets, such as Australia and Italy, which should provide good revenue and earnings growth in the current and future years.” Neil Davidson, the company’s Chief Financial Officer, added: “During fiscal 2011 we intensified our focus on creating long-term value for our shareholders by repurchasing nearly US$475 million worth of our common stock, of which US$398 million was via a modified ‘Dutch auction’ tender we completed in May 2011. In addition, we successfully closed on our new US$700 million credit facility during the quarter to increase our financial flexibility and lower the rate on our borrowing costs.” Las Vegas-based Bally is a leader in slots, video machines, casino management, mobile applications, and server-based systems for the global gaming industry. LV companies could benefit from Massachusetts legalisation Moody’s Investors Service said in a report that the potential for casino expansion in Massachusetts could be a boon for a few Las Vegas-based companies, notably Caesars Entertainment Corp. and International Game Technology. The bond rating company told investors that a long-awaited deal that could lead to full-scale casino gambling in the state could have a ripple effect. If Massachusetts legalises casinos, it could also spur surrounding states, such as Rhode Island, to consider new gaming legislation. International Briefs Briefs Mexico casino attack kills dozens An arson attack on a casino in the northern Mexican city of Monterrey on 25th August has killed 52 people, the BBC reported. Several gunmenburst into thebuilding inbroaddaylight, dousing it with fuel and setting it alight. Amid the panic, many people were trapped and overcome by smoke. Officials suspect organised crime was behind the attack, one of the deadliest since President Felipe Calderon launched his crackdown on the cartels in December 2006. In a tweet, Mr Calderon said the attack was “an abhorrent act of terror and barbarism” that requires “all of us to persevere in the fight against these unscrupulous criminal bands”. The attack happened mid-afternoon when about 100 staff and customers were inside the Casino Royale. One survivor said the gunmen burst in, threatened them and then sprayed some kind of fuel which they set alight. “It was chaos inside. You couldn’t see and the smoke was choking us. Some people didn’t reach the exit and fell just metres from the door,” said one woman who got out. State Attorney General Leon Adrian de la Garza said a drug cartel was believed to be behind the attack. Officials suggested the fire may have been in reprisal for failing to pay extortion money. Home to some of Mexico’s largest companies, Monterrey and the state of Nuevo Leon have seen rising violence as the Zetas and Gulf cartels vie for control of trafficking routes to the US. The drug gangs are also increasingly involved in kidnapping and extortion. Shuffle Master posts 56% leap in 3Q profit Shuffle Master Inc. posted a 56% leap in third-quarter profit, beating analyst expectations. The Las Vegas-based company earned US$9.1 million, or 17 cents per share, ahead of the 15 cents per share projected by the analysts. Revenue went up by 13% to US$58.3 million. Shuffle The aftermath of the arson attack on Casino Royale in Monterrey