67 WALL STREET, New York - November 30, 2012 - The Wall Street Transcript has just published its Gaming and Leisure Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
Topics covered: Hotel Occupancy, Rates and RevPAR Trend Upward - U.S. Regional and Emerging Market Hospitality - Gaming Opportunities In Asian Markets - Macau VIP and Mass Market Gaming
Companies include: International Game Technology (IGT)
In the following excerpt from the Gaming and Leisure Report, the CFO and Treasurer of IGT discusses the outlook for his company for investors:
TWST: Please start by introducing our readers to International Game Technology with a brief company history and an overview of the business as it stands today.
Mr. Vandemore: I think the best way to describe IGT is that it is the absolute leader in the market for manufacturing slot machine games, slot-style games, both now in the land-based world and online. It has been the market leader for some time. We also develop the games that sit on the machines, so think of us very much as dual parts - a manufacturer and a creative content developer.
We have just south of 5,000 employees across the world, we have just under 60 offices, and we pretty much participate in any legal gaming market available to us across the globe, and it does truly span the globe. We are organized into a North American unit, and then we have regional units that cover every other aspect of the globe - European, South American, and then an Asian market region for us internationally.
We serve every legal market and are, as a result, licensed in well over 200 jurisdictions. Generally, the licensure comes from state-level gaming control boards, but that also includes Native American tribal casinos and other jurisdictions outside of the United States.
Also, just for context, we are well known in the industry as the leading innovator. We developed some instrumental technology to make gaming both more cost effective and profitable for game equipment manufacturers like ourselves, as well as our operators. If you play a slot machine today, you use a barcode-scanned ticket. That is our technology that we developed to replace the need for hard coins, hard currency.
If you can recall, like I can, back to the days when you would wander a floor with a bucket of coins instead of a simple ticket. That technology is known as TITO - ticket in, ticket out - and really revolutionized the industry in the early 2000s. We also, even before that made advances to technology to allow slot machines for the very first time to accept paper currency, whereas, again, you used to be confined to simple hard currencies.
And we also developed what's known as the wide area progressive jackpot model, and that's where multiple machines in a given jurisdiction location are linked together, and the jackpot that you can win on that machine reflects the play of both that machine and the other machines. What that enables are much larger jackpots on a per-player basis, because multiple machines are sharing in that jackpot.
And more recently, we were the first gaming equipment manufacturer to in earnest delve into online social-style gaming, so effectively the equivalent of the land-based casino floor, but online in a virtual currency market. Today, we operate DoubleDown Interactive, and DoubleDown is the largest full-floor virtual casino on the Internet, largely a Facebook-based product today, but moving more and more into the mobile realms, as you are seeing with many other virtual currency online game companies.
TWST: Are there any particular areas International Game Technology is focused on growing or expanding today, whether it's specific markets or product or customer type?
For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.