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CR62-p59-Business1:SJC-Casino Review 25/11/07 02:14 Page 1
PGI offers stock
As New York and
Progressive Gaming International is offering 9m shares in
Pennsylvania’s new slot
common stock, plus more than 1.3m more shares if
parlours keep punters from
travelling to Atlantic City, the
required. The company wants to use the money raised to
revenues eleven casinos in the eastern
repay debt, in particular $10m (6.8m euros) outstanding in
seaboard resort are seeing a
a senior credit facility and to fund redemption of senior
continuing decline. Casino
notes to the tune of $15m (10.2m euros). All of the shares revenues in October 2007 were
will be offered by the company.
down 7.5 per cent on 2006 to
$384.4m (262m euros) with
slot revenues down by 12.6 per cent to $270.5m (184.4m
euros). However, table games saw a pleasing increase in
popularity with revenues in October up by 7.3 per cent to
$114.1m (77.8m euros). Almost all casinos in the resorts
recorded lower turnover, except for Borgata, which showed a
7.3 per cent increase on the month compared to 2006.
buys bigger
record year
for IGT
The Austrian casino monopo-
list, Casinos Austria, has
A company that knows how to ride the tide of change, IGT
bought the shares owned by
has managed not only to increase its revenues, it is also
the BAWAG PSK group in
achieving excellent profit margins, all this despite a falling off
IGT’s chairman
Austrian Lotteries, bringing its
& CEO TJ Matthews ownership to 70 per cent.
in machines sales in its core market. A heads of agreement was
signed in early November for
countingup revenues from participation levels as our business model Oklahoma and California. wide product sales were the acquisition of the 36 per
IGT games with an increased continued to evolve In the fourth quarter, the similar to last year but gross cent holding. The deal should
gross profit from that towards a greater focus on company saw revenues of profits improved by three be finalised by the end of the
The world’s biggest slot income stream up by 19 per software and systems.” $309.6m (211m euros) and per cent to $657.8m year. The details of how much
machine manufacturer, cent ($823m - 561m euros), He continued: “Adjusted gross profits of $161m (448.4m euros). It follows money will change hands
International Game Tech- contributing to increased EBITDA reached $1.1bn (110m euros) both up on the same pattern as the have not been released but it
nology, saw its total rev- gross profit across the (750m euros) and we gener- the same quarter last year. fourth quarter sales, fewer is thought to be in the region
enues for the year to the end whole company of nine per ated a record level of cash Non-machine revenues units into the domestic of 200m euros.
of September 2007 reach a cent. flow from operations. All of were up by 26 per cent in market and more interna- BAWAG, a bank formerly
record $2.6bn (1.8bn Gross margins for the year these accomplishments, the quarter to $116.1m tionally, particularly Asia. owned by a trade union and
euros), up four per cent on were 60 per cent, up two coupled with the strength (79m euros) representing While the fourth quarter which acquired the national
the previous year, with much percentage points on last of our balance sheet, 38 per cent of total product showed operating expenses savings bank, was taken over
of the increase due to higher year, which the company allowed IGT to return sales revenues. However, down slightly on the same by a US hedge fund Cerberus
revenues from participation largely attributes to lower $1.3bn (886m euros) to this was largely offset by period in 2006, for the Capital Management in
games and jackpots. jackpot expense and the shareholders in the form of lower total machine sales whole year they were up December 2006 and has been
The installed base of changing mix of units in the stock repurchases and divi- particularly in the US 5.25 per cent to $680.5m keen to divest itself of its non-
machines that provide the installed base. dends in fiscal 2007.” market. Increased ship- (463.9m euros). The core businesses. After
company with a regular “IGT achieved another The 59,200-unit installed ments to Japan and Australia company puts the increase recording heavy losses, it was
income was up 19 per cent record year in 2007,” said base represents an increase kept the unit sales figures down to additional sales and implicated last year in a
to 59,200 with revenues chairman and CEO TJ of 9,600 from the previous from crashing. The quarter’s administrative staffing costs scandal involving hedging
from them up nine per cent Matthews, “led by record year and of 1,000 units from gross margin on product supporting business growth investments in the Caribbean,
to $1.4bn (954m euros). revenue and placements of the third to fourth quarters sales was 52 per cent, con- and greater investment in resulting in a huge shake-up
IGT is also seeing the our gaming operations of 2007, the result of further sistent with the same period research and development. in the management and oper-
benefit of the inevitable cost machines. Non-machine inroads into markets in last year. There were also higher legal ation of the bank.
savings that attend greater sales also reached record Mexico, New York, Florida, For whole year, world- and compliance fees. Dr Ewald Novotny, director
general of BAWAG PSK, said:
“The sale of our stake in Aus-
trian Lotteries to Casinos
Wynn’s Q3 revenues double
Austria is a very good solution
and a sound development for
Austrian Lotteries.”
Dr Karl Stoss, director
general of Casinos Austria and
happyreturns per cent for the resort. On 72,000sq ft casino. It is Austrian Lotteries, concurred.
Winning big: Wynn Macau
WYNN RESORTS slot machines, win per unit expected to open in 2009. He said: “It was important for
per day was $234 (159.5 Wynn Macau, which us that Austrian Lotteries
With the Wynn Macau oper- euros), down 4.7 per cent opened in September 2006, remain in reliable, tried-and-
ation now factoring into its from $248 (169 euros), generated net revenues of tested Austrian hands and
parent company’s results, however, it remains within $347.7m (237m euros). receive as broad and sustain-
Wynn Resorts has recorded the expected range and still Turnover in the VIP segment able a base as possible for a
an increase in net revenues ahead for the year-to-date. of table gaming was $9.8bn successful future.”
in the third quarter of more Gross non-casino revenues (6.7bn euros) with a win of
than 105 per cent over the rose by 8.2 per cent to 3.96 per cent of turnover, viz
same period last year. Good $193.1m (130.4m euros) $290m (197.7m euros). In the
results from Wynn Las Vegas with hotel revenues up 5.7 mass market category, table
have also contributed per cent to $68m (46.3m games drop was $475.4m
strongly. euros) - an occupancy rate of (324m euros) with a win per-
Net revenues for the 96.9 per cent - and food and centage of 20.3 per cent or
quarter ended September 30, beverage up by 5.1 per cent $96.5m (65.8m euros). Slot
2007 were $653.4m (445.5m $72.8m (49.6m euros). machine win per unit per day
euros) compared to $318.1m Ambitious expansion was $457 (311.5 euros).
(216.8m euros) in 2006. plans are underway in Las Expansion is happening
Gross gaming revenues at Vegas with Encore, a 20-acre there too, and so soon after
Wynn Las Vegas were site next to the current hotel opening with more gaming
$149.9m (102.1m euros) games, the win per table per euros). The win percentage right on the Strip which will space, a new front feature
Director general of both
compared to $131.9m day was up to $9,516 (6,487 of 26.4 per cent was above include an all-suite hotel of attraction and further retail
Casinos Austria and Austrian
(89.9m euros). On table euros) from $7,779 (5,303 the target range of 21 to 24 more than 2,000 rooms and a amenities. Lotteries, Dr Karl Stoss
December 2007 businessnews 59
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