US – SHFL helps boost Bally to record quarterBy Phil - 10 February 2014
Bally Technologies reported record quarterly revenue of US$285m for the three months ended December 31, 2013, with systems revenue setting a quarterly record for the fourth consecutive quarter. Second quarter fiscal 2014 results include 37 days of operations from SHFL entertainment.
Ramesh Srinivasan, Bally’s President and Chief Executive Officer, said: “Our second quarter fiscal 2014 was transformative in many respects. We successfully closed the acquisition of SHFL ahead of schedule and the ongoing integration process is moving forward smoothly. We have integrated our sales, services and product development teams while simultaneously continuing to execute well on our core businesses as evidenced in our second quarter results. Customer response across the globe to the integration, including the combined product roadmaps, has been positive. While more work remains to be done, we are off to a terrific start and are tracking ahead of our synergy targets. We believe that Bally is now well-positioned to continue industry-leading innovation and growth.”
Total revenue increased 20 per cent to a quarterly record $285m as compared with $238m last year. Revenues from slots increased 7seven per cent to $88m as compared with $83m last year, driven by the shipment of 1,025 units into the Illinois Video Gaming Terminal market, 587 Equinox units and 90 ETS seats partially offset by the absence of 568 Canadian VLT units sold in the prior year period.
Systems revenues increased 51 per cent to an all-time record $85m as compared with $57m last year whilst table revenues were $14m, with Utility revenue of $9m and Proprietary Table Games revenue of $6m.
Neil Davidson, Bally’s Chief Financial Officer, added: “Revenues that are recurring in nature set a quarterly record and accounted for approximately 51 per cent of total revenue during the quarter. As we make progress on the integration process and continue to identify incremental synergy opportunities, we now expect cost synergies to be at least $40m on an annualized run-rate basis by the end of calendar 2014. Now that the acquisition has closed, we are thoughtfully allocating free cash flow towards the repayment of our debt with a goal of achieving a leverage ratio of approximately three times within the next two years. In fact, we have already paid down $58m of debt since the acquisition closed.”