Slot maker WMS reports dip in revenues, earnings
6 February 2013
Chicago slot machine maker WMS reported a dip in revenues and stockholder earnings resulting from increased expenses for research and development of interactive gaming products.
The good news, the company said, is that its interactive division is starting to make money.
Its Jackpot Party Social Casino is the fourth most popular casino game on Facebook, averaging revenue of $100,000 a day, as more players continue to pay to increase their playing time, the company reported to investors. WMS also said it released a mobile Jackpot Party app in December that quickly became one of the top 10 casino apps for the iPhone.
“The early success of Jackpot Party Social Casino contributed to $12 million in year-over-year revenue growth from interactive products and services,” Brian R. Gamache, chairman and chief executive officer, said in a statement.
Among key earnings reported this afternoon:
• Revenues were $157.5 million for the quarter ending in December, compared to $162.2 million for the same quarter in 2011.
• Stockholders earnings ended the quarter at 8 cents a share, down from 29 cents a share the previous year. Net income was $4.3 million, compared to $16.1 million last year.
• Sales of games and interactive products were $72.7 million, an increase of $8 million from last year.
The company, which has a Las Vegas office, said net income and earnings per share reflected the impact of acquisitions last year of interactive game developers Phantom EFX of Iowa and Jadestone of Sweden.
WMS canceled an earnings call scheduled for this afternoon, because of its acquisition last week by Scientific Gaming. The maker of lottery tickets and software last week bought WMS for $1.42 billion, agreeing to pay $26 in cash per common share.
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