Casino equipment maker Bally Technologies Inc. is well placed to broaden further its global appeal and improve its margins, says a US analyst.
Nicholas A. Danna of Sterne Agee, a privately owned New York brokerage house, told Associated Press that Bally’s customers like its iView display manager and Power Bonusing products. This should boost systems revenue, says Mr Danna.
Systems products offer recurring revenue and a higher margin on sales than stand alone slot machines. 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.
Mr Danna says he 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, says AP.
