Casino equipment maker Bally Technologies Inc. should be able to broaden globally and improve margins, an analyst said Wednesday.
Nicholas A. Danna IV of Sterne Agee said Bally’s customers are starting to get behind its iView display manager and Power Bonusing products, which should boost systems revenue. The iView allows casinos to show messages on the main screen of electronic casino games, on top of games, in overhead displays and in picture-in-picture scenarios.
Danna is also pleased with the Las Vegas-based company’s expansion into South America, Europe and Asia.
“Bally generated 15 percent of revenue internationally in fiscal 2008 versus 10 percent in fiscal 2006,” he wrote in a client note.
Domestic expansion is also likely, with Danna predicting Bally could add 100,000 new slot machines in the U.S. over the next three years.
“This demand should be driven by new casino openings in Nevada, Oklahoma, Pennsylvania, Indiana and Missouri, as well as, by significant expansions in California and Florida,” he said.
