Bally Technologies approached US$1 billion in revenues for the financial year ended 30th June on record systems sales, revenue from progressives and continued expansion into new markets.
The Las Vegas-based slot giant reported net income of $235.5 million, a 41% year-on-year increase, on $997 million in total revenues, which were up 13% over fiscal 2012. Earnings per share (NYSE: BYI) hit $3.45 in what President and CEO Ramesh Srinivasan called a “truly momentous year”.
“We made enormous progress in many different ways, including continued growth in wide-area progressive units, record gaming operations revenue, significant success in new markets like Canada, Illinois and South Africa, and establishing new revenue records in systems while setting up systems for further growth in the years ahead.”
Systems revenue was up 19% for a record $252 million while the base of wide-area progressives grew by 38 percent and also produced a revenue record. Combined they offset an 8% decline in machine sales, which the company attributed to fewer casino openings.
The three months ended 30th June was the eighth consecutive quarter of earnings-per-share growth. Revenue and total earnings also set quarterly records. The 95 cents per share represented a 55.7% increase over Q4 2012 and beat consensus estimates by a penny. Earnings of $64.6 million were up 32.4% on a 7.6% increase in revenue to $264.4 million.
The quarter benefited significantly from a 32% jump in revenues from the systems division.
“The growth and stability of our revenues that are recurring in nature continue to provide significant financial flexibility,” CFO Neil Davidson said in a statement. “With the planned acquisition of SHFL, we now expect to utilize the majority of our excess free cash flow to repay debt.”
Bally said its $23.25-per-share acquisition of Nasdaq-listed SHFL Entertainment is on track to close next year. The $1.3 billion deal was announced in July.
