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: Bally Technologies, Inc. (BYI)
In the following excerpt from the Gaming and Leisure Report, the CFO of Bally Technologies discusses the outlook for his company for investors:
TWST: I know Bally has quite a long history. Would you introduce our readers to Bally with a bit of a company history and an overview of its business today?
Mr. Davidson: Yes, you're right, we do have a pretty long history. In fact, we're celebrating over 80 years of innovation. When you think about the original founding of Bally, in fact, it was in the pinball and video game business, where you fast-forward today, and it's really been in the last 10 years that we've been focused heavily on the gaming industry as it were. We focus on three specific areas, particularly systems. Bally is the leading system provider to the casino industry, and we can go into detail in a bit on that, but that's where we connect our systems to all the slot machines in the casino. We accumulate all the data for regulatory purposes. But in the last 10 years, what's really been a focus is trying to take that data and help our casino operators reward their players better.
We're also focused on what we call our premium gaming operations footprint. That's where we would traditionally lease a machine to a casino operator, either for a daily fee or a percentage of the net win that machine takes in. In the last three to five years, Bally has really been focused on acquiring some Tier I brands. This last year, in fact, we've released a game based on the movie "Grease." We've introduced a wide-area progressive product based on Michael Jackson, "King of Pop," is the name of that one. And this year at G2E, which is the largest trade show in the industry, we unveiled two new brands, NASCAR and Pawn Stars. So we're really excited about investing in brands for the company, and Bally itself has some pretty well-known brands, like Hot Shot, and Cash Wizard is another one.
And then finally, another facet of our business is the outright sale of gaming devices, and we're focused there on capturing ship share - ship share being the percentage of machines to the overall market that is Bally machines. And when I talk market, I'm just talking North America. We think we troughed about two and a half years ago. We figure we were about 15% two, two and half a years ago. Today, we're eclipsing the 20% mark, and we really think that's been driven by our investments in content.
TWST: I was going to ask about any new products or technology introductions, and you named some of them. Does Bally have any notable customer contracts it recently has won?
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.